Disposal

29 Jan 2008 07:01

HG Capital Trust PLC29 January 2008 The following is the text of a press release issued by HgCapital, which managesthe investment portfolio of HgCapital Trust plc alongside those of otherinstitutional clients. The sale of The Sanctuary Spa, HgCapital Trust plc, alisted investment trust giving investors the opportunity to participate in allof HgCapital's investments, realises a total of £22.4 million. The impact of therealisation on the net asset value of HgCapital Trust plc equates to an increaseof approximately 48p per share over the published 30 November 2007 net assetvalue of 920p (which has since increased by 20p following the completion of thesale of Hofmann Menu). HgCapital sells The Sanctuary Spa Group to PZ Cussons for £75 million London, 29th January 2008: HgCapital, the European sector-focused private equityinvestor, announces the sale of The Sanctuary Spa Group to PZ Cussons, theconsumer products group, for £75 million. This is the seventh transaction byHgCapital since August 2007. The Sanctuary Spa is the leading female body care brand in the UK. The companyalso operates The Sanctuary Spa in Covent Garden, which serves over 64,000guests per annum. Since acquiring the products business in 2005, The SanctuarySpa management team has grown the brand dramatically, with the introduction ofnew product lines and successful expansion into international markets,particularly the US and the Far East. The company experienced strong tradingover the key Christmas period. For the period September 1st to December 31st2007, retail sales increased by 11%. Richard Mathews, Head of Consumer and Leisure at HgCapital, commented: "This is another example of HgCapital investing in a strong brand and a greatmanagement team. Alice and her team have done a fantastic job of building thismuch-loved brand into a household name, growing the business through theintroduction of new product categories and successfully expandinginternationally. The Sanctuary Spa has excellent prospects for further growthand we wish everyone at the company well for the future. The successful sale of The Sanctuary Spa demonstrates the effectiveness ofHgCapital's strategy of deep sector focus and active partnership with ourportfolio businesses. This, together with our high levels of resourcing, candeliver strong returns throughout the whole economic cycle." Since April 2007, HgCapital has made five acquisitions, as well as eight salesof portfolio companies to private equity and trade buyers yielding 3.0x originalcost and an IRR of approximately 50%. Alice Avis, Chief Executive of The Sanctuary Spa commented: "We are delighted with how the business has developed and grown in recent years.The iconic spa in Covent Garden underpins our brand authority and has enabled usto develop the products business into one of the UK's leading body care brands.We have also expanded the business into international markets, with particularsuccess in the US, where sales grew by eighty per cent over the Christmasperiod. Despite more challenging consumer trading conditions, we had anothersuccessful Christmas, with sales increasing by over ten per cent. PZ Cussons hasan excellent reputation in the industry and we look forward to working with themto develop The Sanctuary Spa further, both in the UK and internationally." Close Brothers Corporate Finance Limited is acting as the sole financial advisorto HgCapital in relation to the transaction. Contact details: HgCapitalRichard Mathews Tel: 020 7089 7931 The Sanctuary Spa Group Alice Avis Tel: 020 7353 4200 Tulchan CommunicationsAndrew Honnor Tel: 020 7353 4200 Notes to Editors About HgCapital HgCapital is a private equity investor in the European mid-market. We focus oninvestments with an enterprise value in the range of €75-750 million. Ourbusiness model combines sector specialisation with dedicated, proactive supportto our portfolio companies and management expertise across all phases of theinvestment process. HgCapital manages more than €2.7 billion for some of theworld's leading institutional and private investors. Our goal is to achieveoutstanding results for our investors, management team and intermediaries.Further information on HgCapital can be found at www.hgcapital.com. This information is provided by RNS The company news service from the London Stock Exchange