• US precision high energy beam technology success EBTEC Corporation (‘EBTEC’) sold to EDAC for approximately $11m
• Leading SME investor Foresight Group's initial investment in Aquasium on behalf of Foresight VCT generates £3m cash for the VCT
• Foresight to retain its shareholding and loan position in Aquasium
The Board of Foresight VCT plc is pleased to announce that Aquasium Technology Limited (‘Aquasium’) has completed the sale of EBTEC Corporation (EBTEC), the electron beam welding specialist and subsidiary of Aquasium, to EDAC Technologies Corporation (EDAC) for approximately $11 million, generating a return of £3m to the VCT.
Foresight VCT made an investment of £1.9m in Aquasium, the technology focused holding company whose specific aim is to acquire and build up companies in the broader technology sector which have good mature technology and products but are not realising their full potential. Aquasium acquired EBTEC from Smiths Group in 2005, since when the business has benefited from supportive shareholders and the management has driven high levels of growth at both the revenue and profit lines, whilst creating a solid reputation for the business to grow under new management.
EBTEC Corporation was founded in 1963 and is a certified supplier to major aerospace and industrial concerns around the world. Having pioneered the development of non-contact, high energy beam (HB) technologies with the Apollo Space Program, proving at the time that electron beam (EB) welding could meet the demands that space travel would place on engineered products, EBTEC’s precision high energy beam processes today extend to laser welding, laser cutting, laser drilling, EDM, vacuum heat treating, and abrasive waterjet cutting with comprehensive precision fabrication solutions.
Andrew Shannon, Investment Manager of Foresight Private Equity commented: “Since our original investment in Aquasium in 2001 we have worked closely with the management team to grow and transform the businesses in the portfolio. The sale of EBTEC to EDAC is a vindication of the strategic vision of the company and is a great outcome for all parties, realising £3m for Foresight VCT shareholders.”
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Notes to Editors
Foresight is an independent specialist environmental, infrastructure and private equity investor, which focuses primarily on investments in unquoted UK and European companies or projects and offers investors exclusive access to attractive income and growth opportunities.
Foresight has in excess of £670 million assets under management across a number of funds, including Limited Partnerships, Enterprise Investment Schemes (EIS) and Venture Capital Trusts (VCTs).
Foresight’s Private Equity team is comprised of eight investment professionals, investing between £1m and £5m in management buy-outs, management buy-ins and growth capital investments in UK SMEs. The strength and depth of the team has enabled Foresight to lead the consolidation of the VCT sector, taking over the management mandates of established VCTs, such as Advent VCT, Advent 2 VCT, Noble VCT, Keydata Income 1 and 2 VCTs, Acuity Growth VCT and Acuity 3 VCT, from other investment managers.
Foresight recently successfully closed fundraisings for Foresight Solar VCT at £38m and Foresight Solar EIS at £27.5m and has raised in excess of £30m for its unique Infrastructure VCT Shares, an innovative new share class which targets investments in energy generation projects and secondary PFI. Foresight manages the most successful VCT ever, Foresight VCT plc, which has returned more than 1.9x original investment in dividends to its investors.
In the solar infrastructure sector, Foresight’s solar funds are invested in more than £300 million of operating PV assets in the UK, Italy and Spain.
Foresight is one of the market leaders in waste and environmental investment management, with a growing £175 million portfolio of recycling, biomass and waste to energy companies and was recently appointed by UK Green Investments (UKGI) the specialist team within the Department of Business, Innovation and Skills to manage an initial £50 million fund set aside for green infrastructure investment.