Portfolio Update - Exit - Sale of portfolio company TFC Europe Limited
Foresight VCT PLC
Exit: Sale of portfolio company TFC Europe to AFC Industries delivers 12.6x cash-on-cash return for Foresight VCT and other funds managed by Foresight Group
The Board of Foresight VCT Plc (the “Company”) is pleased to announce the sale on 29 June 2022 of portfolio company TFC Europe Limited (“TFC”), a leading European supplier of technical fasteners and wave springs, to AFC Industries Inc. (“AFC”), which provides inventory management solutions including a wide range of fasteners alongside technical service support to customers in North America. AFC is a portfolio company of Bertram Capital, a private equity firm based in California.
The transaction generated proceeds of £10.3 million at completion. When added to £1.5m of cash returned to date, this implies a total cash-on-cash return of 12.6 times the original investment, equivalent to an IRR of 23% since the initial investment in 2007. Following the sale of Codeplay Software Limited, announced on 6 June 2022, and the dividend of 4.5p per ordinary share paid on Friday 24 June 2022, the Company’s NAV per ordinary share stood at 88.1p, to which this sale will add 0.7p, giving a pro forma NAV per ordinary share of 88.8p.
Since the original investment, the manager, Foresight Group, has taken a proactive approach to supporting TFC, helping to extend its network in the UK and Germany. TFC also rapidly expanded its vendor managed inventory service, growing the customer base, so it now provides a market-leading service to SMEs and international global brands operating across a range of industries. Foresight Group supported three acquisitions as well as considerable investment in new and existing facilities, opening new sites in England, Northern Ireland and Czech Republic.
Throughout the COVID-19 pandemic, TFC continued to invest in its organic growth strategy, ensuring it was well positioned to deliver best in class service to its customers. This approach positioned TFC for its current period of rapid growth.
Margaret Littlejohns, who chairs Foresight VCT Plc said: “TFC has been a great success story for the Company and our shareholders. We are delighted that Foresight Group has been able to make such a positive contribution to the growth of the business and we wish TFC continued success.”
For Information Contact
Gary Fraser, Foresight Group: 02036678100