ELTA.L Regulatory News (ELTA)

3 May 2007 07:02

Electra Private Equity PLC03 May 2007 Electra Private Equity PLC Press Release3 May 2007 Electra announces the sale of Capital Safety Group for $565m Electra Private Equity PLC ("Electra") is pleased to announce it has enteredinto a conditional agreement for the sale of its interest in Capital SafetyGroup ("CSG") in a $565m secondary management buyout arranged by CandoverPartners Limited. On completion of the transaction, Electra will receive net proceeds of US$174m(circa £87m depending on exchange rate movements) for its investment in CSG,representing an uplift of circa £62.9m, or 260%, over the valuation of CSG at 30September 2006. This would give rise to an increase in net asset value of 168pper share. Completion of the transaction is conditional upon competition clearance. It ispresently expected that competition clearance decisions will be made within 6weeks. In 1998 Electra led the £98.3m buyout of CSG. Under Electra's ownership CSG hasevolved from a business with a regional-based focus into an internationalbusiness selling under two global brands, DBI-Sala and Protecta. Today thecompany is the world's leading manufacturer of height safety equipment. Itsproducts are used by workers across a number of sectors such as oil and gas,telecommunications and construction. A refinancing was put in place in 2005, with Electra realising £58.3m from whichit reinvested £12.75m in the equity and £5.65m in the mezzanine loan of a newholding company, Capital Safety Group II. Since 2005 the profitability of thebusiness has grown considerably. Based on anticipated net proceeds of £87m Electra will achieve a multiple ofover 5 times its original investment with an IRR over 9 years of 23%. David Symondson at Electra Partners commented: "The key aspect of thisinvestment is the amount of time we have held it, backing the leadership ofCSG's CEO Paul Trinder over the long term. Because of our flexible structure wehave not been obliged to sell the business within a pre-determined timescale.This has enabled us to benefit from strategic decisions implemented in the earlyyears. CSG is now of a size whereby it will benefit from a change of shareholderas it looks to consolidate its position in the personal protection equipmentmarket." Close Brothers acted as sole financial adviser to Electra. For further information please contact:David Symondson/Rhian Davies, Electra Partners LLP 020 7214 4200Nick Miles, M: Communications 020 7153 1535 Notes to Editors Electra Private Equity PLC (www.electraequity.com) Electra has specialised in private equity for 30 years achieving investmentreturns substantially in excess of the FTSE All-Share Index and returning atotal of £1.2 billion to shareholders through tender offers and on-market sharebuybacks since 1999. Since October 2006 Electra has had a revised investmentstrategy which returns Electra to full investment of its capital resources inprivate equity. Electra, with its differentiated investment approach, has astrong market position and provides shareholders with a direct and liquid accessto private equity. Electra Partners LLP (www.electrapartners.com) Electra Partners is an independent private equity fund manager whose majorclient is Electra Private Equity PLC. As at 30 September 2006, it had fundsunder management of £800 million. The team at Electra Partners has beeninvesting and managing the assets of its clients for over 15 years, accumulatingconsiderable expertise whilst building a strong track record. NAV Calculation Electra's net asset value at 31 March 2007 (including its valuation of CSG atthat date) is expected to be announced in early June. This information is provided by RNS The company news service from the London Stock Exchange