Caledonia Investments has announced the sale of is 67.9% equity stake in TGE Marine for €106.9m (£78.7m) net of transaction expenses. TGE provides engineering, procurement and construction supervision solutions to the global cryogenic gas markets. This includes the design and supply of gas carriers, fuel gas systems and offshore units. It specialises in cargo handling systems and tanks for LPG, LEG, Ethane and LNG carriers. The purchaser is MES Germany Beteiligungs GmbH, a wholly owned subsidiary of the Mitsui Engineering & Shipbuilding Co. Overall the investment has generated an IRR for Caledonia of 39% and a money multiple of 3.5x on its investment. Caldeonia say that the transaction will complete on 1 October 2015 and the proceeds received will be held on deposit for future investment.
Caledonia first invested in TGE to back a management buy-out from Tractebel Engineering, a member of the Suez group, in 2006. Over its period of ownership, Caledonia has invested a total of £34.8m. Prior to the current transaction, Caledonia had received £43.2m in loan note repayments, interest and dividends, including £5.8m of dividend income in its financial year to 31 March 2015. The residual investment was held in Caledonia’s audited accounts at 31 March 2015 at a value of £64.9m and the total proceeds to be received from the sale represent a 30% premium to that value.
Caledonia Investments sells TGE Marine for €106.9m : CLDN