Caledonia Investments PLC
16 May 2006
Caledonia Investments plc
Caledonia leads MBO of Tractebel Gas Engineering GmbH from Tractebel Engineering
Caledonia Investments plc ('Caledonia') has committed to provide Euro 18m for
the management buyout ('MBO') of Tractebel Gas Engineering GmbH ('TGE') from
Tractebel Engineering, a member of the Suez Group.
Caledonia owns 49.9%, and TGE's existing management 40%, of a new acquisition
vehicle established for the MBO, with the remaining 10.1% held by Glenalta
Capital LLP, a specialist private equity co-investment firm. The vehicle is
initially buying 75% of TGE with an option to acquire the remaining 25% over the
next two years.
TGE is a specialist gas engineering business focused on turnkey design and build
solutions for gas storage and transportation. TGE's particular strengths are
its track record in LNG plants and carriers, and its expertise across cryogenic
gas applications both on and offshore. The company operates globally and has
offices in the UK, Germany, China, Taiwan and Brussels. TGE's client base
includes major oil companies (BP, Conoco Philips, AGIP), large shipyards
(Samsung, Daewoo, Jiangnan), and leading petrochemical groups (Formosa Plastics,
BASF). In 2005 TGE had turnover of approximately Euro 190m and today has a
forward order book in excess of Euro 300m.
The TGE management team after the MBO is unchanged, led by Vladimir Puklavec,
CEO, and divisional heads, Manfred Kuver and Herbert Zabel. Together they
represent a proven team that has grown the company throughout 13 years of Suez'
Will Wyatt and Roland Fisher from Caledonia will be joining the advisory board
of the TGE Group.
Commenting on the transaction Will Wyatt, a Director of Caledonia, said: 'TGE
offered us a rare combination of committed management, an excellent track
record, and a place within the fast growing LNG value chain. It has grown well
under the Tractebel Engineering custodianship but, as Suez has recognised,
needs independence to address the full market opportunity. I hope our long term
support and financial strength will help establish TGE as the leading gas
Engineering Procurement and Construction contractors.'
Vladimir Puklavec, CEO of TGE, said: 'TGE with Tractebel Engineering built an
EPC platform with geographic strength in Europe and China, and product strength
in gas storage, gas carriers and LNG. Now with Caledonia we hope to develop
this platform and capture the value that is coming from rapid growth across our
markets and products. This is an exciting time for the whole team at TGE and I
am delighted that in Caledonia we have a partner which shares our enthusiasm and
16 May 2006
Peak Associates advised TGE's management on the transaction
Caledonia Tel: +44 (0)20 7802 8080
TGE Tel: +49 (0) 228 60448 100
Glenalta Capital Tel: +44 (0) 20 7559 6672
Peak Associates Tel: +44 020 7468 7457
College Hill Tel: +44 (0)20 7457 2020
For further information on TGE, please consult the company website
Caledonia is a long established investment company with international scope
listed on the London Stock Exchange. Since April 2003 Caledonia has been
classified in the Global Growth sector of investment trusts where its investment
performance puts it in the top quartile over 1, 3, 5 and 10 years. Moreover,
Caledonia's strategy has delivered outperformance against its benchmark FTSE
All-Share Total Return index of 137% over the five year period to 30 April 2006
and 160.4% over the ten year period to 30 April 2006. Caledonia has a policy of
delivering progressive annual dividends with a 38-year record of unbroken annual
dividend increases. Through holding a diversified portfolio, Caledonia aims to
maintain a medium overall risk position.
At 30 April 2006, Caledonia had an unaudited Net Asset Value of 2069p per
Caledonia's strategy is to focus on a portfolio of around 30 to 40 principal
investments, where it has significant and influential stakes with a policy that
at least 50% of the total portfolio should be in quoted securities or other
liquid assets. New investments will typically be in the range £10 million to
£25 million. Careful control is exercised over costs, notwithstanding
Caledonia's active and participative management style. The Board believes that
Caledonia has a long established and valuable reputation for being a supportive
long term investor, which brings a strong deal flow of opportunities not always
available to others.
Caledonia's investments are focused on a selected range of sectors where it has
good in-house knowledge that can add value to management of investee companies.
Where particular expertise is not held in-house, investments may be made through
third party managed funds where Caledonia will often seek a significant stake in
the management company.
Caledonia's selected sectors are: Financial: comprising 25% of net assets,
including holdings in Close Brothers, Rathbone Brothers and Polar Capital;
Leisure and Media: comprising 16% of the net assets, including holdings in
Kerzner International and The Sloane Club; Managed General Funds: comprising 24%
of the net assets including holdings in British Empire Securities and Cobepa;
Industrial and Services: comprising 10% of the net assets, including investments
in Offshore Logistics and Melrose Resources; Property: comprising 12% of the net
assets, including a holding in Quintain Estates; net current assets 11%; and
Other: comprising 2% of the net assets. The percentages of the net assets
quoted are as at 30 April 2006.
Further information on Caledonia can be found at www.caledonia.com.
About Peak Associates
Peak Associates is a corporate advisory firm specialising in M&A and corporate
finance in the international energy sector.
About Glenalta (www.Glenalta.com)
Glenalta Capital LLP provides European private equity co-investment origination
and execution services throughout Europe. The Glenalta team comprises the former
senior investment professionals of GE Equity Europe who established and
developed GE Equity's European private equity co-investment program between 1995
This information is provided by RNS
The company news service from the London Stock Exchange