Investment – Page 3

KIMS GROUP RECEIVES INVESTMENT OF US$200 MN FROM TRUE NORTH

Mumbai, March 29, 2017: In one of the largest healthcare transactions in India, the Kerala Institute of Medical Sciences (KIMS) will partner with True North, a leading private equity fund. True North will invest over USD 200 million in the KIMS Group. This investment will be for the stake held by Ascent Capital Advisors India Pvt. Ltd & OrbiMed Advisors Llc and as a primary capital infusion to fund the growth plans of the KIMS Group across India and the Middle East. True North will hold around 40% stake in India. Dr. M. I. Sahadulla, Chairman of the KIMS Group, and his management team, with a board majority, will continue to run the Company both in India and the Middle East.

Commenting on the deal, KIMS Chairman, Dr. M.I. Sahadulla said, “Started by a group of professionals including Doctors and Management experts, our aim at KIMS has been to provide ethical, high quality healthcare with a focus on patient safety. Our goal is to ensure that the best facilities and expertise of international standards are made available to the people we serve. When considering the choices of an equity partner, we sought to join with a group that maintained high ethical values similar to ours, and with whom we could work with collaboratively to provide the best of healthcare facilities at an affordable cost. Our interactions with Vishal Nevatia, Founder of True North and Satish Chander, Managing Director of True North coupled with their impeccable record along with positive feedback from their existing portfolio companies gave us great confidence to partner with the firm. Together, with a shared value system, we hope to continue our growth and to become one of the largest Healthcare providers in India and the Middle East in the next 3 to 5 years.”

Satish Chander, Managing Director of True North commented: “We believe that private equity has a key role in funding Indian healthcare services to address the sector’s supply-demand gap. True North has played an active part by investing in the sector and it continues to be a key focus area for us. We have had the opportunity to evaluate numerous organizations in this space and have made nine investments across our different funds. We have known Dr. M.I. Sahadulla and his team for several years and we truly admire their pursuit to build a healthcare service enterprise of the highest caliber. We see their flagship Trivandrum facility as a testimony to their focus on pursuing excellence in clinical care as well as customer service. We also respect the approach that they have taken to build this enterprise on a foundation based on the highest values and ethics and we feel that this philosophy resonates very well with our principles. True North is very excited at the opportunity to partner with and support KIMS in its future growth aspirations. We are excited about the healthcare potential in India and the Middle East and believe that KIMS would be a good addition to our healthcare portfolio.”

About KIMS

Kerala Institute of Medical Sciences (KIMS) is a Healthcare Group providing quality healthcare services across India and the Middle East. KIMS was founded in 2002 by the Chairman Dr. M.I. Sahadulla and founding promoters, who leveraged their vast international healthcare experience to deliver high quality clinical care with courtesy, compassion and competence at an affordable cost. KIMS is the largest corporate hospital chain in Kerala and has over 1,500 beds across 6 hospitals. KIMS’ first and largest hospital in Trivandrum is a 650-bed multi-specialty quaternary care hospital. KIMS has emerged as one of the leading providers of medical services, research and academics in South India. The Group has a presence in the Middle East across 5 countries, with 2 hospitals and 6 medical centers, as well as one managed hospital. The Group’s combined turnover is in excess of INR 11 billion with a profitability of 11.5% and employs more than 6000 healthcare providers including 600 doctors.

About True North

True North (formerly known as India Value Fund Advisors – IVFA) was established in 1999 with a focus on investing in and transforming mid-sized profitable businesses into world-class industry leaders, built on the strong foundation of True North Values which are embodied within the principles of ‘The Right Way’.

Steered since its inception by Vishal Nevatia, True North has built deep knowledge and skills in the Indian markets and has successfully launched five separate investment funds with a combined corpus of over US$ 2 billion. True North’s insights and understanding of India has been sharpened over the last 17 years by investing over US$ 1 billion in more than 30 Indian businesses. It has successfully guided these companies in making the transition into well-established and large businesses that are valuable, enduring, socially responsible and is creating immense wealth for all stakeholders.

The True North team has been structured with a balanced mix of 9 Investment and 16 Business Managers, who bring with them several hundred man-years of industry experience to achieve the above objective.

FSN CAPITAL IV ACQUIRES A MAJORITY STAKE IN ACTIVE BRANDS

FSN Capital IV has signed an agreement with Holta Invest to acquire a majority stake in Active Brands AS, a leading Nordic supplier of premium sporting goods brands. Holta Invest, existing management and founders will re-invest alongside FSN Capital and continue to own a material stake in the company.

Active Brands manages a portfolio of well-established sports apparel and equipment brands, including Kari Traa, Dæhlie, Bula and Sweet Protection. The company has achieved great success in recent years, and has delivered strong growth from an efficient and scale-able platform.

Based on a talented and dedicated workforce, Active Brands has consistently outperformed the Nordic market for sporting goods by generating organic annual growth of 30% since 2013. From a strong Norwegian base, the company has gradually expanded into new geographies, and in 2016 approximately 30% of net sales were generated outside of Norway.

In partnership with FSN Capital, Active Brands aspires to reinforce its strong position in the Nordics and further accelerate international growth, through both organic and inorganic initiatives.

“We have admired Active Brands for a long time and have been impressed by the platform created by Holta Invest and the management team’s ability to develop truly unique brands with significant international growth potential. Our ambition is to build on Active Brands’ leading position in the Nordics and support further growth in North America and Central Europe together with our new partners”, says Erik Nelson, Partner at FSN Capital Partners AS, acting as adviser to FSN Capital IV.

Active Brands CEO, Espen Krogstad, is pleased with the acquisition by FSN Capital.

“On behalf of the employees and management team of Active Brands, I am pleased to have FSN Capital as a new majority owner. Active Brands has developed in a fast pace and is today amongst the leading companies in the Nordic sporting goods industry. We are delivering solid growth across all geographies and I look forward to further developing the company”, says Espen Krogstad.

Holta Invest will retain a 20% ownership stake in Active Brands post the transaction.

”We established Active Brands in 2010 with the objective of taking a leading role in the consolidation of the Nordic sporting goods industry. Since then, Active Brands has developed into a great business with a talented team, strong brands and a scalable platform. The company has a strong position in the Nordics and has successfully entered large international markets. We are proud of the development of Active Brands and we are honored to get FSN Capital on board as a new majority owner. We believe in a promising future for the company and we are excited to continue our ownership of Active Brands together with FSN Capital”, says Dag Teigland, Chairman Active Brands and CEO Holta Invest.

The transaction is subject to regulatory approvals from the Norwegian competition authorities.

LIVINGBRIDGE INVESTS IN STOWE FAMILY LAW

Livingbridge, the mid-market private equity firm, has invested in Stowe Family Law LLP, the largest family law firm in the UK with 10 offices nationally including a flagship office in central London.

The investment will be used to fuel the growth of the firm by building a larger national footprint, opening up to 30 additional offices over the next five years, as well as building on SFL’s strong IT platform and management team.

Livingbridge believes that the law firm has enormous potential to serve more of the UK.

Daniel Smith, of Livingbridge, said:

“Stowe Family Law is a great success story. Under Marilyn’s ownership it has become the largest specialist family law firm in the UK, consistently delivering outstanding service and outcomes for its clients. Livingbridge is delighted to have the opportunity to invest in SFL and work with the team. The business is in fantastic shape with a talented team of leaders, solicitors and staff who are at the top of their game. We look forward to working with SFL to continue delivering great client service and to grow the business further.”

Livingbridge has invested in over 100 entrepreneurial companies, particularly in consumer markets and professional services, supporting recruitment firms such as Frank Recruitment Group, Staffline and The Up Group as well as Kingsbridge, the specialist insurance broker, and Broadstone, the pensions and employee benefits provider.

This investment is the second investment from the Livingbridge 6 fund, which completed fundraising in September 2016.

Stowe Family Law was founded by Marilyn Stowe, who is best known for her market-leading client service and expert handling of all types of matrimonial disputes alongside her work freeing Sally Clark, the mother wrongly jailed for the murder of her two sons in 1999 in one of Britain’s most famous miscarriages of justice. Mrs Stowe took on the case for free and in her own time after suspecting the case against Mrs Clark was flawed.

Since it was founded over 30 years ago, the practice has acted for over 20,000 clients and built a network of 10 offices across the UK.

The deal will allow Mrs Stowe, one of the country’s top family lawyers, to explore new opportunities, using her expertise as a family lawyer and campaigner for justice as well as her reputation as a successful businesswoman.

Marilyn Stowe, founder of Stowe Family Law said:

“I will always be involved with the firm, and I am particularly thrilled it will continue to bear my name. It has been my most important ambition for this firm and its clients to thrive following my departure and I have achieved this with Livingbridge. Today also marks an incredible personal milestone for me, having built Stowe Family Law up over decades from a converted cobbler’s shop in East Leeds. The families and individuals that my fantastic team and I have helped have always been at the heart of my career. I went into the legal profession to give back to society and to fight injustice and that’s a legacy I know will be continued by all my colleagues at Stowe Family Law. I’m now very much looking forward to exploring new opportunities to use my experience to help address some of the issues that matter most to me.”

Charles Hartwell, CEO of Stowe Family Law, said:

“Thanks to Marilyn, and with the investment from Livingbridge, the future looks very strong for our firm and our clients. We have a great team, offering exceptional service in difficult cases and the investment will allow us to take our personal service to a much wider audience across the country. We will always pride ourselves on our expertise, authority and commitment to delivering straightforward advice in a professional and caring way.”

CAPITON ACQUIRES A MAJORITY STAKE IN THE GEMACO GROUP

About the Company

Gemaco is a leading provider of full-service merchandising and promotional marketing solutions for global industry and fast-moving consumer goods (FMCG) customers. Gemaco’s service offering allows its clients to outsource all business processes related to promotional merchandising – from trend analysis, design, procurement and logistics to distribution, quality control, IT and cost management.

Gemaco dark

For more than 20 years, Gemaco has been active as the premium supplier of promotional products, sales promotion solutions and fulfilment programs across a wide range of sectors. The Company’s 13 locations make it one of the very few providers able to serve large corporates on a global scale. Gemaco employs around 290 people, of which 110 are based at its headquarters in Mechelen (Belgium), and generated sales of € 90 million in 2016.

Transaction summary

Gemaco is a proprietary transaction which was identified through capiton’s targeted sector approach in the area of “marketing procurement / promotional merchandise” leading to an exclusive sales process.

capiton acquires the Gemaco Group together with Management from the family office Saffelberg Investments and will support the further internationalization of the business. Financing of the transaction is provided by capiton’s current investment vehicle, capiton V, and banks.

Based on its strong market positioning, capiton and management are planning to grow the business both organically as well as through targeted acquisitions.

The transaction remains subject to approval from competition authorities. Buyers and sellers have agreed not to disclose the financial terms of the transaction

CITIC LIMITED, CITIC CAPITAL, THE CARLYLE GROUP AND MCDONALDS FORM STRATEGIC PARTNERSHIP TO EXPAND IN MAINLAND CHINA AND HONG KONG

New Partnership Will Become the Largest McDonald’s Franchisee Outside the United States

CITIC Limited (SEHK:00267, “CITIC”), CITIC Capital Holdings (“CITIC Capital”), The Carlyle Group (NASDAQ: CG, “Carlyle”) and McDonald’s Corporation (NYSE: MCD, “McDonald’s”) today announced the formation of a partnership and company that will act as the master franchisee responsible for McDonald’s businesses in mainland China and Hong Kong for a term of 20 years.

mcdonalds-small-french-fries

The total consideration payable by the new company to acquire McDonald’s mainland China and Hong Kong business is up to US$2.08 billion (approximately HK$16.14 billion). The consideration will be settled by cash and by new shares in the company issued to McDonald’s. After completion of the transaction, CITIC and CITIC Capital will have a controlling stake of 52%, while Carlyle and McDonald’s will have interests of 28% and 20%, respectively.

The partnership will use its combined expertise and resources to accelerate growth in McDonald’s business through new restaurant openings, particularly in tier 3 and 4 cities, and to improve sales performance in existing restaurants. The focus will be on key areas such as menu innovation, enhanced restaurant convenience, retail digital leadership and delivery. It intends to add over 1,500 restaurants in China and Hong Kong over the next five years.

McDonald’s CEO Steve Easterbrook said, “China and Hong Kong represent an enormous growth opportunity for McDonald’s. This new partnership will combine one of the world’s most powerful brands and our unparalleled quality standards with partners who have an unmatched understanding of the local markets and bring enhanced capabilities and new partnerships, all with a proven record of success. By working together, we will unlock even faster growth and be closer to the customers and communities we serve as McDonald’s works to be the leading Quick Service Restaurant across the Chinese mainland and Hong Kong.”

China’s consumer sector is growing rapidly, benefiting from continued urbanisation, an expanding middle class and increasing disposable household incomes. China’s working population is larger than those of the US and Europe combined, yet spending levels of China’s middle class are a small fraction of those in more developed countries. As disposable incomes rise, people will continue to spend more on leisure and dining out, particularly in tier 3 and 4 cities where there is great growth potential. As such, the market for Western Quick Service Restaurants is expected to continue to grow rapidly.

For CITIC, this investment offers a chance to deepen its exposure to the consumer sector, which is poised to be the main driver of China’s economy for decades to come. This transaction is another step in CITIC’s efforts to better balance its financial and non-financial businesses. CITIC also sees opportunities for synergies with its existing businesses.

Mr Chang Zhenming, Chairman of CITIC Limited, commented: “We believe CITIC’s unique platform and its extensive resources will enable us to help realise McDonald’s full potential in China. Together with our partners, we will devote ourselves to continue upholding McDonald’s extremely high standards of food quality and service. Importantly, this is also a strategic opportunity for CITIC to invest in the expanding Chinese consumer sector. McDonald’s extensive network and consumer base will provide us with invaluable insights, which we will leverage to the benefit of our existing businesses.”

For Carlyle, this investment offers the chance to partner with an iconic brand with sizeable market share and growth potential in China. Carlyle has years of strong investment and operating experience in the global consumer and retail sector, and is well positioned to drive further growth of the new company. Equity for this transaction will come from Carlyle Asia Partners IV. Carlyle has invested more than US$7 billion of equity in approximately 90 transactions in China, as of 30 September 2016.

Mr X.D. Yang, Managing Director and Co-Head of the Asia buyout team of The Carlyle Group, will serve as Vice Chairman of the board of the new company. He said, “Carlyle and CITIC have a strong history of partnering together. Today, we are pleased to cooperate with CITIC again, alongside McDonald’s, on one of our largest deals in China. This substantial investment demonstrates our confidence in the strength of the Chinese consumer.”

Mr Yichen Zhang, Chairman and CEO of CITIC Capital, will serve as Chairman of the board of the new company. He said, “McDonald’s core business proposition and potential in China is clear. We will work closely with the existing management team and partners, including Beijing Capital Agribusiness Group, to respond to local market expectations and continue to expand and improve the business to meet the needs of the Chinese consumer.”

As part of its turnaround plan announced in May of 2015, McDonald’s committed to refranchising 4,000 restaurants by the end of 2018, with the long-term goal of becoming 95% franchised. As a result of this transaction, McDonald’s is refranchising more than 1,750 company-owned stores in China and Hong Kong.

As of 31 December 2016, McDonald’s operates and franchises over 2,400 restaurants in mainland China and more than 240 restaurants in Hong Kong. It has built one of the strongest brand names and most robust systems in the region over the past three decades. Currently employing over 120,000 staff and serving over one billion customers annually in China, McDonald’s is the second largest Quick Service Restaurant chain in China and the largest in Hong Kong.

Upon completion of the transaction, the new company will have a board of directors with representatives from CITIC, CITIC Capital, Carlyle and McDonald’s. McDonald’s existing management team will continue to lead the business.

The deal is contingent upon relevant regulatory approvals. The deal is expected to close in mid-2017.

This press release should be read in conjunction with the full text of the HKEX Announcement dated 9 January 2017, which is available on www.hkex.com.hk.

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About CITIC Limited

CITIC Limited is China’s largest conglomerate operating domestically and overseas, with businesses in financial services, resources and energy, manufacturing, engineering contracting and real estate as well as others. CITIC’s rich history, diverse platform and strong corporate culture across all businesses ensure that CITIC Limited is unrivalled in capturing opportunities arising from China’s continued growth. CITIC Limited is listed on the Stock Exchange of Hong Kong (SEHK: 00267), where it is a constituent of the Hang Seng Index. CITIC Group, a Chinese state owned enterprise, owns 58% of CITIC Limited. For more information about CITIC Limited, please visit the company website at www.citic.com.

About CITIC Capital

Founded in 2002, CITIC Capital is an alternative investment management and advisory company. The firm manages over US$8 billion of capital from a diverse group of international and Chinese investors. Core businesses include Private Equity, Real Estate, Structured Investment and Finance, Asset Management and Venture. CITIC Capital currently employs over 200 staff members throughout its offices in Hong Kong, Shanghai, Beijing, Shenzhen, Tokyo and New York. The firm combines a deep knowledge of the Chinese business and financial markets with world-class investment expertise to create and maximize value for its investors.

About The Carlyle Group

The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with US$169 billion of assets under management across 125 funds and 177 fund of funds vehicles as of 30 September 2016. Carlyle is one of the largest investors in China, having pursued approximately 90 investments over almost 20 years in China. Carlyle’s purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Investment Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including aerospace, defence & government services, consumer & retail, energy, financial services, healthcare, industrial, real estate, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,625 people in 35 offices across six continents.

About McDonald’s

McDonald’s is the world’s leading global foodservice retailer with over 36,000 locations in over 100 countries. More than 80% of McDonald’s restaurants worldwide are owned and operated by independent local business men and women.

LOS GROBO SELLS 75% OF ITS EQUITY TO THE FUND VICTORIA CAPITAL

After a year of stormy negotiations, when they decided to sign the agreement at exactly 3am, the printer failed. What seemed impossible, happened: they run out of toner. The transaction that changed the history of Los Grobo Group, one of the main agribusiness players, was finalized hours later. In this context, Victoria Capital Partners makes a capital injection of US$ 100 million into the Company. Furthermore, for an undisclosed amount, it buys 75% of the Company which has annual revenues of US$ 550 million, 700 employees, 50,000 hectares of crops, ventured into agrochemicals with Agrofina, leads the precision agriculture with Frontec in association with INVAP, produces seeds and even offers financial services through a mutual credit guarantee company.

Victoria Capital acquires the stock that was still owned by the Brazilian Vinci group and by Gabriela and Andrea Grobocopatel. Gustavo and his other sister Matilde remain as shareholders. Grobocopatel will continue to be President and Horacio Busanello, CEO. “The entire team stays”, Grobocopatel assured Clarin.

What’s new about this multi-million dollar transaction, is the type of investors that Victoria Capital is partnering with, the IFC, the investment vehicle of the World Bank, the Dutch bank FMO and the University of Texas which invest in Argentina for the first time.

Victoria Capital, on the other hand, has been with us for decades. This fund, which is a successor of the well-known DLJ, made its first investment with the purchase of Peñaflor, the powerful wine conglomerate, is a shareholder of Zucamor (cardboard containers) and the seeds producer Satus Ager. They split from Credit Suisse in 2011, discarded the DLJ name and adopted Victoria, in honor of the only vessel that survived the Magellan expedition. With offices in New York, Sao Paulo, Bogotá and Buenos Aires, Victoria has investments in the Colombian construction company Corona, the publishing company Santillana in Spain and Arcos Dorados, the McDonald’s franchise. Itau bank acted as financial advisor in this transaction.

grupo-los-grobo – Aren’t you afraid of an unfavorable market scenario as a consequence of Trump’s triumph?

-If there is a competitive and sustainable industry in Argentina, it is the Agriculture. We are a financial investor group with no time urgency. We have many years ahead of us, say Carlos García and Santiago Cotter, partners at Victoria.

–Why do you sell part of the group?, Grobocopatel was inquired.

-We try to take advantage of the current political and economic scenario. We now count with a great global platform with top investors. Nowadays, we need to have access to knowledge and capital. We cannot grow without access to capital. We want our company to transcend the family and Argentina.

“We will double in size in a short period of time. Cost of money is part of being competitive. A new whole scenario opens up”, added Busanello.

Going forward, they will strengthen Los Grobo as a leader in services that integrate the producer’s needs in one place.

One of the first new segments they focus on at this stage is legumes, such as yellow pea, Canadian lentil and chickpea, that they have already started to sow. “It can be a boom very similar to that of soybean, with India increasingly demanding this type of products”, Grobocopatel added enthusiastically.

LIVINGBRIDGE SERVES UP FIRST DEAL FROM NEW FUND WITH ACQUISITION OF RHUBARB

Livingbridge, the mid-market private equity firm, today announces its investment in rhubarb, the premium food and beverage operator. The deal is the first investment from its new £660m fund, Livingbridge 6.

Originally established in 1996 as an events business, rhubarb expanded its rhubarb activities in 2003 to include the operation of lease and concession contracts at iconic, high footfall locations, initially by providing high-end catering at Ascot Racecourse.

Today, the company operates long term contracts at venues including the Sky Garden at the ‘Walkie Talkie’ building in London, the Royal Albert Hall and events at the Goodwood Estate. It also provides bespoke catering solutions at around 600 events per year for a broad range of clients, from high profile charity galas for 2,000 guests to small, intimate dinners in country venues.

With offices in London and Surrey, the firm now employs 248 full time members of staff alongside over 900 temporary staff.

rhubarb is the first investment from the Livingbridge 6 fund, which completed fundraising in September 2016 and targets companies with enterprise values typically between £20m and £125m. The investment in rhubarb is also Livingbridge’s third in the food and drink sector having invested in Pho, the Vietnamese fast casual restaurant in 2012, and Bistrot Pierre, the regional French bistrot group in 2015.

The investment from Livingbridge, will help rhubarb’s continued growth across the UK and internationally with the overall aim of doubling in size in the next four years. In addition, Richard Prosser, who has private equity expertise within the global leisure, travel and tourism industries, will be joining as Chairman on completion of the deal.

PB Jacobse, CEO of rhubarb, said:

“We are very excited to be working with Livingbridge on the next stage of our development, particularly in light of their knowledge of the food and beverage market through their existing investments. We are ideally positioned to benefit from positive market trends and current consumer tastes and, with a good level of visibility over our existing contracts, as well as a strong pipeline of new growth opportunities, we are confident of building on the strong momentum we have generated to date.”

Benoit Broch, Director at Livingbridge said:

“rhubarb’s management team have done a fantastic job in growing the business over recent years, securing a number of high profile contracts and creating a premium, differentiated brand that is highly valued by consumers and businesses alike. The company have long-term contracts at some fantastic locations and a strong pipeline of future growth opportunities and we are very much looking forward to helping them expand their offering both throughout the UK and overseas.”

LIVINGBRIDGE SIGNS UP TO £23 MILLION EXCLAIMER INVESTMENT

Mid-market private equity firm Livingbridge has invested £23 million in Exclaimer, the largest global provider of email signature software. The investment is the last primary investment from Livingbridge 5, the firm’s £360m fund raised in 2012.

exclaimer

Exclaimer, headquartered in Farnborough, Hampshire, was founded in 2000 by business partners Andrew Millington, Gary Levell and Chris Crawshay and today provides software to over 25,000 customers in more than 100 countries including blue-chip firms such as the BBC, Audi, Sony and McDonalds.

The Group is an accredited Microsoft Gold partner and its products support the full array of Microsoft‘s email solutions including MS Office 365, Microsoft’s rapidly growing cloud deployed business platform. Exclaimer’s software gives users complete flexibility and control over email signatures and disclaimers, ensuring regulatory compliance whilst enabling consistent brand promotion and innovative marketing campaigns.

There are currently over one billion active business email mailboxes worldwide. Cloud mailboxes currently make up 40% of the total but this is forecast to rise to 70% by 2020. This transition, combined with the increasing necessity for Compliance and Marketing teams to own the email signature, represents an immediate opportunity for Exclaimer.

The investment is the 13th and final investment from the Livingbridge 5 fund which has included investments in Direct Ferries, Frank Recruitment and Metronet, although additional funds remain to finance growth strategies and M&A opportunities for existing investments.

The investment from Livingbridge in Exclaimer will see the business invest in expanding relationships with partners, add scale by broadening its suite of products and invest further in infrastructure and customer services to ensure Exclaimer capitalises on its market leading position.

The deal was led by Matthew Caffrey, Xavier Woodward and Mo Aneese. Exclaimer was advised by Jamie Hope, Emmet Keating and Mike Falzon from Catalyst Corporate Finance.

Commenting on the investment, Andrew Millington, Chief Executive Officer of Exclaimer said:
“In the last 16 years we have taken a very simple concept and turned it into a global success. The investment from Livingbridge will enable us to push on even further, adding scale and firepower to our business while still maintaining our entrepreneurial culture of innovation to ensure our customers continue to receive excellent product and services. We are delighted to be working with the Livingbridge team and I know I speak on behalf of the whole team when I say that we are incredibly excited about our future.”

Matthew Caffrey, Partner at Livingbridge said:
“Exclaimer is an impressive company with great technological focus which has demonstrated an ability to iterate their software to lead their market. Our experience of working with high growth tech businesses, combined with Exclaimer’s strong management team and award winning reputation, means that the business is extremely well placed to capture the opportunity that the rapid expansion of MS Office 365 brings.”

CAPITON INVESTS IN NANO-ENGINEERING FIRM, RAITH

About the company

Raith is a leading global developer and manufacturer of nanofabrication systems and software used for printing and scanning nanostructures. Since 1980 Raith has been developing, manufacturing and distributing system solutions for R&D applications to analyze and develop microchip circuits and other nanostructures, for instance in the fields of biochemistry or cybersecurity. The company caters to a global customer base of leading universities, research labs and blue-chip technology companies. Raith has two production sites in Germany and the Netherlands, as well as three distribution units in the US, China and India. In addition, Raith’s regional sales managers are supported by local sales partners across 15 countries. Raith employs around 200 people worldwide, of which 120 are based at its headquarters in Dortmund, and generated sales of € 54 million in 2015.
raith Transaction summary

capiton acquires Raith from the equity capital partner HANNOVER Finanz, who supported the company’s growth since 2002, and will become the majority shareholder of Raith. Financing of the transaction is provided by capiton’s current investment vehicle, capiton V, and banks. capiton is planning to grow the business organically both via international and product expansion, leveraging Raith’s strong market position, as well as through targeted acquisitions, for which additional funds have been reserved in fund capiton V. The transaction remains subject to approval from competition authorities. Buyers and sellers have agreed not to disclose the financial terms of the transaction.

LIVINGBRIDGE’S METRONET (UK) ACQUIRES M247 TO CREATE NATIONAL TELECOMMUNICATIONS PLATFORM

Metronet (UK), the UK’s fastest growing network services provider, backed by mid-market private equity firm Livingbridge, today announces its acquisition of M247, a leading internet infrastructure and hosting company, for £47.5m.

Following the acquisition of M247, Metronet (UK) will be able to offer a combined portfolio of connectivity and content services including wireless network services, datacentres and managed hosting solutions across the UK and Europe.

metronet

Livingbridge invested in Metronet (UK) in June 2014 as part of a £45m secondary buyout of the firm and the acquisition of M247 is the first step in a targeted buy and build strategy that aims to build a disruptive platform in the connectivity space with ‘last mile’ control, speeding up communications to end users, and a powerful transit network across Europe. The combined business will have EBITDA in excess of £12m, over 200 staff and three datacentres.

Established in 2003, Metronet (UK) operates the most advanced hybrid ISP network in the UK and, by combining a unique offering of wireless and wired technology, is able to offer connectivity solutions to corporates and SMEs that are typically implemented five times quicker than traditional fibre and copper based services.

Metronet (UK) currently employs 150 people across two sites in Manchester and works with over 2,500 businesses including Intu, Sofology and ao.com, delivering turnover of £21.5m in the financial year to 2016.

M247 was founded in 2000 by school friends Jonathan Buckle and Chris Byrd, initially as a web hosting services business before David Buckle, Jonathan Buckle’s father, decided to co-invest in the business to purchase a web hosting company named Open Hosting. Open Hosting was then incorporated into Jonathan Buckle and Chris Byrd’s existing business before being rebranded as M247 in 2003.

Today the business provides a wide range of solutions including web hosting, network and data security and 24/365 technical support. The firm operates from Manchester, UK and Bucharest, Romania with clients including On the Beach and Warburtons.

Matthew Caffrey, Partner at Livingbridge, said:

“This is a fantastic step forward for Metronet (UK) as it continues to expand its footprint across the UK and eventually into Europe. This acquisition is the start of a journey to build an international, multi-offering internet service provider and hosting business and we are delighted that M247 will be part of that process. Metronet (UK) has an exciting time ahead as it actively looks for similar acquisition opportunities and we look forward to seeing the business build on its success to date.”

Lee Perkins, Chief Executive at Metronet (UK), said:

“M247 is an excellent fit for us as it provides the scale and reach to build upon our existing momentum and the expertise and infrastructure to provide richer solutions to our combined customers. In addition to further acquisitions of similarly high quality businesses to M247, we are making significant investments in our systems and people to facilitate a smooth integration for our customers and to support further organic growth.”

David Buckle, Managing Director at M247, said:

“We have known the Metronet (UK) team for some time and feel they are a perfect fit for our business. They are the ideal home for M247 and we are extremely excited about what the future holds for our combined businesses.”