Listed British firm Caledonia Investments has made 3.5x money on the exit of German cryogenic gas services provider TGE Marine to MES Germany Beteiligungs, a subsidiary of Japan’s Mitsui Engineering & Shipbuilding Co.
Caledonia will see £78.7m in cash from the deal before transactions fees, in addition to a pre-transaction dividend of £5.4m, bringing the total proceeds from the GP's 67.9% stake in TGE to £84.1m.
The transaction is expected to complete on 1 October, marking the end of Caledonia's nine-year ownership of TGE with a net IRR of 39%. The GP will retain the profits from the sale to use for future investments.
Over the course of Caledonia's investment in TGE, the company returned £43.2m in loan note repayments, interest and dividends to the GP.
The GP partially exited TGE in May 2008, when it was listed on London's AIM market at a £158.3m valuation, returning 20x money for Caledonia and Capital Dynamic's co-investment team.
However, in the wake of the 2008 global financial crisis, Caledonia reacquired a substantial shareholding in TGE and cancelled the admission of the company's shares to AIM.
TGE is a Bonn-headquartered engineering, procurement and construction service to the global cryogenic gas markets, specialising in cargo handling systems for liquefied petroleum gas, liquefied ethylene gas, ethane and liquefied natural gas carriers.
The company had revenues of €178m for the 2014/15 year and an EBIT of €22m.
Caledonia's Charlie Edwards, Sally Flanagan and Duncan Johnson worked on the deal. Manfred Küver is the CEO of TGE.
Vendor – DC Advisory (Corporate finance); Taylor Wessing (Legal).
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