Apax Global Alpha fund invests in Alcumus, Ole Smoky Distillery

Apax Global Alpha announced on Monday that the Apax X fund, in which it is a limited partner, has signed a definitive agreement to acquire technology-led risk management and compliance specialist Alcumus.

The FTSE 250 company said Apax X had also signed a definitive agreement to acquire a controlling stake in Ole Smoky Distillery - one of the fastest=growing spirits companies in the United States.

It said both transactions were expected to close in the first quarter, subject to customary closing conditions.

On a look-through basis, Apax Global Alpha was expected to invest about €20m (£16.76m) in Alcumus, and €10m in Ole Smoky, depending on final closing arrangements.

“Alcumus provides environment, health and safety, as well as environmental, social and governance risk management and compliance software and services,” the Apax board said in its statement.

“The EHS and ESG services sectors, which the Apax funds know well having tracked them for several years, are seeing significant growth driven by an increasingly complex regulatory environment and rising EHS and ESG expectations and requirements - tailwinds Alcumus is expected to benefit from.

“Apax X will leverage the Apax Funds' experience across services and software to partner with the existing management team in capitalising on long-term secular growth and consolidation in the market.”

Ole Smoky, meanwhile, was described by the company as a “leading distiller” of premium American whiskeys.

“The investment follows on from previous acquisitions in the consumer-packaged goods sector where the Apax internet and consumer team focuses on opportunities to acquire well-positioned premium brands.

“In line with this strategy, Apax X identified Ole Smoky as a compelling investment opportunity in the high-growth spirits sector and will look to accelerate the company's growth through continued investment in the core brand and supporting the strategic acquisition of complementary brands.”

At 0847 GMT, shares in Apax Global Alpha were down 0.31% at 209.84p.