Foresight Group (Foresight) is delighted to announce on behalf of the boards of Foresight VCT plc Planned Exit and Foresight 2 VCT plc Planned Exit (together the "Foresight Funds”) that it has completed the successful sale of Channel Safety Systems Group Limited ("Channel”) to Newbury Investments (UK) Limited which owns a range of electrical products businesses including Deta Electrical, Stearn, Norbain and UK Electric.
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Channel is a leading manufacturer and distributor of lighting, fire detection, door entry, CCTV and disability assistance products, primarily through the electrical wholesale channel.
Foresight backed the MBI of Petersfield based Channel in 2010 since when the management team has focused heavily on new product introductions, particularly expanding the range of LED emergency lighting, introducing an LED commercial lighting range and entering door entry and CCTV markets. With the focus on new product introductions, combined with investment in brand and sales infrastructure, management has consistently grown EBITDA since the MBI.
The terms of the transaction are confidential. However, we are able to advise that aggregate consideration to the Foresight Funds (which each hold an equivalent stake) is expected to be £1.0m (as compared with aggregate cost of £151.5k at 31 Dec 2014). Combined with the disposal in 2014 of Channel’s fire and security installation and maintenance division, Foresight’s investment in Channel is expected to return 2.0x cost and an IRR of 22% for the VCT shareholders.
James Livingston, Director of Foresight and of Channel (until completion) commented, "We are delighted to have supported the management team through the journey of management buy-in, continuous new product development, EBITDA growth and successful exit. We are proud to transition the business to new owners with a substantially stronger product portfolio and market position than when we first invested.”
Peter Mazalon, Managing Director of Channel said,"It was the right move partnering with Foresight which started well right from the outset. Their support throughout the investment period was unflinching despite some challenging market conditions in past years. We are confident that the effort put into building a strong brand and product portfolio will serve the new owners well to take the company onto the next growth path."
For further information, please contact:
Ben Thompson: firstname.lastname@example.org / 020 3667 8155
Notes to editors:
About Foresight (www.foresightgroup.eu)
Foresight Group is a leading infrastructure and private equity investment manager, which has been managing investment funds on behalf of institutions and retail clients for more than 30 years.
Foresight has £1.3 billion of Assets Under Management across a number of funds, including Listed Vehicles, Limited Partnerships, Enterprise Investment Schemes (EISs) and Venture Capital Trusts (VCTs).
Foresight’s Private Equity team, comprising eleven investment professionals, invests typically between £1m and £5m in management buy-outs, management buy-ins and growth capital investments in UK SMEs.
Further information at www.foresightgroup.eu