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Better Capital completes Gardner Aerospace disposal

Better Capital completes Gardner Aerospace disposal to Ligeance Investments Limited, a wholly owned subsidiary of Shaanxi Ligeance Mineral Resources Co., Ltd. for GBP326.0 million on an Enterprise Value basis.

Gardner is an award-winning leading Tier-1 supplier of detailed parts and added-value services to the global aerospace industry.  The business was acquired by the 2009 Fund in February 2010 after failing to secure new investment to fund on-going losses.  Under Better Capital’s ownership, Gardner received injections totalling GBP41.0 million from the 2009 Fund, most of which has gone into funding bolt-on acquisitions and capital projects.

Headquartered in Derby, UK, Gardner now operates from ten manufacturing facilities across the UK, France, Poland and India and has an excellent reputation for delivery and quality.  In the year ended 31 August 2016, the business reported turnover and EBITDA from continuing operations of GBP132 million and GBP24 million respectively.

Shaanxi Ligeance Mineral Resources is a diversified industrial group, listed on the Shenzhen Stock Exchange (market capitalisation of GBP1.3 billion – as at 9 June 2017) with significant mining reserves.  The strategic acquisition of Gardner will enable Shaanxi Ligeance Mineral Resources to access a world class manufacturer of scale with a strong European customer base, and pursue its ambitions in the Aerospace/ Industrial Gas Turbine (IGT) sector.

The sale of Gardner has realised net proceeds to the 2009 Fund of GBP254.1 million, an uplift of GBP34.1 million/ 15.5 per cent. to the 2016 Interim Report valuation of GBP220.0 million, recording an IRR of 35.3 per cent.  and 7 times money multiple on total investment of GBP41.0 million.

The Board intends to distribute GBP221.9 million (equivalent to approximately 107 pence per share) to the 2009 Shareholders by way of a compulsory partial redemption as soon as practicable.  A further announcement will be made in due course.

Richard Crowder, Chairman of Better Capital PCC Limited, said: “On behalf of Better Capital, I would like to record my appreciation to all at Gardner for their contribution to this great success, and I wish Gardner and its new owner every success in its next phase of growth.”

BCAP : Better Capital completes Gardner Aerospace disposal

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