PSP takes minority stake in BC's Allflex Group

Alice Tchernookova
10 June 2016

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Canadian pension fund Public Sector Pension Investment Board (PSP) has acquired a minority interest in Allflex Group from BC Partners.

Following the transaction, BC Partners will remain the majority shareholder in Allflex, in which it invested in 2013. The deal is understood to value BC's investment at 2x money, with potential further upside due to the remaining stake.

The transaction follows unsolicited interest from different trade and financial buyers in the group.

Since the acquisition in 2013, Allflex has seen consistent double-digit growth, according to BC. In 2015, the group acquired livestock monitoring technology provider SCR, and Sureflap, which produces monitoring devices for pets. Both acquisitions contributed to the group's overall expansion.

PSP said in a statement that it would cooperate with BC and keep up the support to Allflex's management team, encouraging the company's growth. It will also look at further opportunities to grow into adjacent sectors, such as aquaculture.

Previous funding
In May 2013, BC Partners, via its BCEC IX fund, made a binding offer of $1.3bn to Electra for Allflex, following a competitive auction process. The sale generated a 15x multiple and a 28% IRR for Electra, which reinvested £57m to retain a 15% stake.

Electra first backed the firm in 1998, contributing $46m to the $160m secondary buyout of the company. The asset was acquired from Goldman Sachs Private Equity.

The company was refinanced in 2005 and 2007, and in late 2014, Electra Partners provided an extra £12m in funding to the group for the acquisition of SCR Engineers.

Company
Allflex provides animal identification and monitoring products such as ear tags across all livestock species and pets. Its clients include farmers, state regulatory bodies, livestock industries, aquaculture operators and pet owners.

Founded in 1955 and based in Brittany, Allflex operates 40 facilities on five continents and employs 1,700 people worldwide.

People
BC Partners – Jean-Baptiste Wautier (managing partner).
Public Sector Investment Board – Guthrie Stewart (senior vice-president, global head private investments).