Investment in ICR
GRAPHITE ENTERPRISE TRUST PLC
13 March 2014
Graphite Enterprise Trust PLC ("the Company") is pleased to report the second investment by Graphite Capital Partners VIII ("Graphite VIII"), in which the Company is an investor.
Graphite VIII, a fund managed by Graphite Capital, has backed the management buy-out of ICR, a provider of repair and maintenance services to the global energy industry. The Company has invested £10.9 million in ICR through Graphite VIII. This represents 2.5% of the value of the Company's portfolio as at 31 October 2013. ICR is now one of the Company's ten largest underlying investments.
About ICR
ICR comprises four high quality, niche businesses that mainly operate in the UK and Middle East energy markets. Walker Technical is a specialist in composite repairs to pipework and structures for oil and gas customers. NECE provides corrosion monitoring, oilfield microbiology, chemical monitoring and consultancy services to offshore operators. MOSS is a leading mechanical services provider. CIU provides specialist rental, sales, repair and maintenance services for chemical pumping units used in the international oil and gas market. The group's head office is in Aberdeen and its Middle East operations are run from Dubai.
In the past three years, ICR has achieved strong growth with turnover rising to over £30 million. There are significant opportunities to build the business further as operators seek to extend the life of existing infrastructure. Oil and gas platforms and downstream processing facilities around the world are ageing and require regular repair. In the North Sea alone, annual oilfield operating expenditure has increased to £8.5 billion in 2013 from £5.5 billion in 2004.
ICR has identified opportunities for new product development, UK onshore expansion and further international growth. The company also expects to continue its successful bolt-on acquisition strategy.
Graphite Capital has a successful track record of investing in the oil and gas services sector. In May last year, it sold the Aberdeen-based oilfield services company, Dominion Gas for 2.3 times cost, to Praxair Inc. of the US for around £100 million. In 2012, it sold NES Global Talent, the international provider of specialist engineers to the oil and gas industry, to AEA Investors for £234 million, achieving 4.7 times cost.
NOTES
Graphite Enterprise Trust PLC
Graphite Enterprise Trust PLC ("Graphite Enterprise" or "the Company") aims to provide shareholders with long term capital growth through investment in unquoted companies. To achieve this, the Company invests in private equity funds and also directly in private companies.
The Company was listed in 1981 and has invested exclusively in private equity and has had the same manager throughout its life.
Graphite Enterprise provides access to a diverse portfolio of buy-outs of mature, profitable companies in established European private equity markets. The Company invests in UK-based mid-market companies through funds managed directly by Graphite Capital. Typically these will make up 20-25% of the portfolio. Investments in other UK companies and in overseas markets are made through funds managed by third parties. The Company does not invest in start ups or early stage businesses.
Shareholders of Graphite Enterprise gain exposure to a diverse portfolio of buy-outs of mature, profitable companies in established European private equity markets, with over 350 underlying companies. Graphite Capital directly manages many of the largest companies in the portfolio.
Since inception, the Company has increased the amount of capital raised almost 28 times.
Graphite Capital
Graphite Capital is one of the UK's leading mid-market private equity firms with over £1.5 billion of funds under management. It has raised and managed funds for 32 years. The senior management team has worked together for 16 years.
Graphite Capital manages both direct investments in portfolio companies and private equity fund investments.
Direct investments are predominantly made through limited life funds which have a global institutional investor base. The focus of direct investments is on UK mid-market buy-outs of companies valued at between £40 million and £200 million across a range of industry sectors.
Fund investments are made exclusively by Graphite Enterprise. Fund investments focus principally on European buy-out funds. The investment strategy is to back private equity managers with strong track records operating in mature markets, with the aim of building long term relationships.
As it has a long experience both of managing its own funds and of investing in third party funds, Graphite Capital has an unusually broad perspective when assessing fund and co-investment opportunities. Graphite Enterprise benefits from both the expertise of a dedicated fund investment team as well as the insights of Graphite Capital's direct investment team.
This information is provided by RNS
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