Caledonia offloads Deep Sea Electronics investment
Caledonia Investments announced on Tuesday that its portfolio company Deep Sea Electronics (DSE), which provides backup power control systems, has been acquired by Generac.
The FTSE 250 company said Generac is listed on the New York Stock Exchange, and described it as a “leading global designer and manufacturer” of energy technology solutions and other power products.
DSE was acquired by Caledonia in October 2018, and had grown “strongly” since then, the firm’s board said.
It had secured a larger share of core target markets, having developed and launched power control products in load-sharing and synchronisation, and had successfully captured adjacent market opportunities with new products in off-highway control.
Throughout its partnership with Caledonia, DSE had been led by chief executive officer David Thomson, who would retain overall responsibility for DSE following the sale, under the direction of Generac chief technical officer Patrick Forsythe.
Caledonia said it would receive net proceeds of £242.2m in cash, net of fees, for the sale of its 84.2% fully diluted stake.
The cash proceeds would be held on deposit for future investment.
Caledonis said DSE was held in its audited accounts as at 31 March at £193.0m.
“Caledonia's private capital strategy is to invest in leading UK businesses with high quality management teams, and DSE and Dave Thomson have embodied this,” said head of private capital Duncan Johnson.
“We are delighted with what DSE has achieved under our ownership, having encouraged focused investment in both short- and long-term growth initiatives, whilst maintaining strong alignment with Dave and his team.
“We thank and congratulate Dave and the DSE team for their stewardship of DSE during our partnership and wish them all every success under their new ownership.”
At 0827 BST, shares in Caledonia Investments were up 3.03% at 3,121.67p.