Marwyn adds to Wilmcote stake – Wilmcote Holdings has today announced its intention to float on the AIM market of the London Stock Exchange, raising a further GBP15 million with backing from a number of institutional investors. Marwyn Value Investors II L.P., in which Marwyn Value Investors’ ordinary shares are indirectly invested, will invest GBP5.11 million in the placing, having previously invested GBP10 million in Wilmcote in March 2017. The Company’s underlying economic exposure to Wilmcote attributable to the Ordinary shares will be GBP11.5 million following the capital raise. The net proceeds of the placing will in part be used to carry out due diligence on potential acquisition targets and provide working capital prior to the platform acquisition.
Wilmcote has been established with the objective to create value for its investors through the acquisition and subsequent development of target businesses in the downstream and specialty chemicals sector. The Directors believe the sector offers opportunities for capitalising on attractive structural trends and consolidation in fragmented markets. They see potential for significant value creation through the implementation of operational improvements in the acquired businesses, ultimately transitioning them to being customer-led and application-centric.
Wilmcote intends to acquire businesses with an enterprise value in the region of GBP500 million to GBP2 billion in order to create significant shareholder value through a well-executed buy-and-build strategy. Wilmcote is led by Adrian Whitfield, formerly CEO of Synthomer plc where he successfully delivered a turnaround and growth strategy, increasing market capitalisation by 13x from turnaround lows. James Corsellis and Mark Brangstrup Watts, the founders of the Marwyn Group(2) , are both Directors of Wilmcote.
Mark Brangstrup Watts commented: “We are delighted to be backing Adrian and to see additional support for Wilmcote’s strategy from institutional investors. The listing of Wilmcote is consistent with our stated strategy of diversifying the portfolio and backing-proven management teams in sectors offering significant investment opportunities. ”
MVI : Marwyn adds to Wilmcote stake