HgCapital, the Manager of HgCapital Trust, has announced that it has agreed the sale of SFC KOENIG, a Switzerland-based, leading provider of high-quality, sealing and flow control technology, to IDEX, a producer of highly engineered fluidics systems and components in the USA. Completion is subject to, amongst other things, regulatory approval.
The Trust will realise cash proceeds of approximately GBP5.6 million on completion of the transaction. This represents an uplift of GBP0.8 million (15%) over the carrying value of GBP4.8 million in the Net Asset Value of the Trust at 31 May 2016 which was based on the Directors’ valuation as at 31 December 2015. Based on the 31 May 2016 reported NAV (including all announced transactions), the pro-forma NAV of the Trust is expected to increase to GBP520.5 million or 1,394.4 pence per share. The Trust’s liquid resources available for future deployment are estimated to be GBP20.4 million (4% of the pro-forma 31 May 2016 NAV).
The investments within the Trust portfolio were last valued at 31 December 2015. The Trust’s 2016 interim results, including the re-valuation of the portfolio as at 30 June 2016 will be announced on 12 September 2016.
With roots in custom-made sheet metal working in Zurich since 1927, SFC KOENIG first evolved into current form in 1985. Since then it has grown to serve markets across the world with a range of sealing and flow control technologies including its core products, the KOENIG EXPANDER(R) sealing plugs and KOENIG RESTRICTOR(R) orifices. HgCapital initially invested in the autumn of 2008, alongside Swiss private equity firm, Capvis. Since that time, HgCapital has supported the SFC KOENIG team in various initiatives to accelerate revenue growth and has invested significantly into international expansion and R&D.
“We are happy to join the IDEX family, a platform which convinced us to be an ideal environment to support our ideas and achieve our long term targets,” says Alparslan Kütükcüoglu, CEO of SFC KOENIG. “Both our companies are committed to highly engineered products, innovation and deep customer relationships.” Arno Poschik, Director at HgCapital, said: “HgCapital is proud to have worked alongside SFC KOENIG since 2008. We found a high quality niche champion in its industry and forged a partnership to support its growth into international markets and the development of its product offering, even through challenging times. This is a firm grounding from which SFC can continue to grow and IDEX is an excellent partner to help put this into practice.”
HGT : Hg sells SFC Koenig