Caledonia Investments (CLDN) has invested £49.5m for a majority stake in Conquip Engineering Group, a Hampshire-based construction company and infrastructure services provider. The £2bn flexible investment company has bought 61% of the family-owned business which brothers Daniel and George Critchley will continue to lead and reinvest alongside Caledonia. Founded in 2003, Conquip employs 250 people and last September bought ProMech, a shoring and ground support systems provider to boost its proposition in the UK excavation market. Caledonia said it would support increasing Conquip’s penetration with existing customers, expanding geographic coverage, investing in the rental fleet, scaling its shoring proposition, developing new products and making selective acquisitions. Tom Leader, head of Caledonia Private Capital, said: “Conquip is a high-quality and differentiated business with a strong management team, market-leading products and clear opportunities for continued growth. Its focus on safety, customer service and innovation has enabled it to create trusted, long-standing relationships across the UK construction industry.” The investment deploys more proceeds from Caledonia’s £290m exit from family office Stonehage Fleming in January. Last month it completed a £60m investment in Blue Diamond, the UK’s largest garden centre operator.
Richard Williams, senior analyst at QuotedData, said: “This could prove an astute acquisition by CLDN – right in its wheelhouse in the lower mid-market where competition from larger private equity firms is less intense and where the trust has built a strong long-term track record. Although construction markets can be cyclical, Conquip’s exposure looks to be weighted towards infrastructure and utilities rather than more discretionary areas of building activity. Its growing equipment rental and specialist ‘shoring’ operations should provide a more resilient earnings base, while CLDN intends to support further investment to scale these business lines as well as pursuing selective bolt-on acquisitions.”
Georgia Capital (CGEO), the single country emerging market fund that the managers of Migo Opportunities (MIGO) recently sold after a doubling in its share price, has reported second quarter growth of 15.6%. Net asset value rose to £50.10 per share at 30 June, up from £43.34 at 31 March, “driven by strong operating performances across our large private portfolio companies and continued growth in Lion Finance Group’s share price”.
Activist hedge fund Saba Capital has lifted its stake in Molten Ventures (GROW) from 13.2% to 14.2%. Shares in the £1bn investor in high-tech start-ups stands 19% below the value of its investments, a discount that has narrowed from a 33.8% one-year average, helping to push the shares up 71% over 12 months.
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