As we come to the end of 2011, it would be easy to get caught up in the turmoil of the Eurozone and broader economic issues but at August Equity the year will be remembered as one of solid development and progress.
It is a year in which we have strengthened the investment team with the addition of two new members. Our portfolio continues to perform strongly both organically and through acquisition. In fact, August Equity's portfolio companies collectively acquired 34 businesses in 2011. We completed Independent Vetcare, a new investment within the veterinary services space, and also exited our investment in Planit successfully. We continue to see strong investment opportunities and hope to announce more positive developments in the New Year.
NEWS @ 10
Enara installs Coldharbour»
Enara continues to roll out an integrated system to consolidate business practices within its rapidly expanding group.
|
Funeral Services Partnership»
FSP completed the bolt-ons of James & Thomas Limited and Mears & Cotterill Limited, bringing to 16 the number of acquisitions completed since the investment in 2009.
|
Industry Awards»
Aatif was named the Most Influential Investor of the Year at the HealthInvestor Power Fifty Awards 2011. He also won the The Most Outstanding Strategist in the Over 50’s Market, both globally and in the UK.
|
In October we announced the investment into Independent Vetcare, a veterinary services build-up. Veterinary care has many of the characteristics and themes we seek such as a fragmented market, ability to create scale and high quality of earnings.
Find out more...
September saw us realise the investment in Planit, an international Computer Aided Manufacturing ("CAM") software and support services business. We initially invested in the business in a public-to-private transaction in December 2006 when we saw strong potential for growth, scope for profit improvement and opportunities to realign the business in its core CAM market. In the first instance we devised a profit improvement plan with the management team and set about selling its retail division, Fusion, to focus on the more attractive CAM market. We appointed an M&A adviser in mid 2011 with strong US coverage to exploit the market with the largest number of suitable trade buyers. Planit was subsequently sold to Vero Software in September 2011 generating a strong return for our investors.
Find out more...
Developing and growing the investment team is central to the success of August Equity. To ensure we are in a position to take advantage of strong deal flow we have appointed two new members to the investment team, Rob Simpson and Anthony Bellau as well as promoting Mehul Patel to investment manager. We are continuing the recruitment process and we hope to make further additions to the investment team in the coming months.
August Equity completed a total of 34 bolt-on acquisitions for its portfolio companies during the year.
Close
Task
The veterinary services market is a highly fragmented market, with 75% of the UK's 4,000 veterinary clinics independent or in small partnerships. Whilst there is significant interest in the sector there are few businesses of sufficient size to create a viable platform.
Close
Action
August Equity specifically identified a group of smaller practices which it was able to acquire and create a platform, Independent Vetcare. The group comprises Advanced Vetcare Limited, Rowe Veterinary Group and Berry House Group. The recent acquisition of Berry House Group expands the group's geographical footprint.
Close
Result
August Equity provided the combined business with committed acquisition facilities to fund the buy-and-build and is one of the first in private equity to invest in the pet care industry.
Close
Task
We initially invested in Planit in a public-to-private transaction in December 2006 when we saw strong potential for growth, scope for profit improvement and opportunities to realign the business in its core CAM market.
Close
Action
In the first instance we devised a profit improvement plan with the management team and set about selling its retail division, Fusion, to focus on the more attractive CAM market. This led to the sale of Fusion to a Canadian retail focused CAD/CAM firm, 20:20 Technologies Inc., for £19.0 million.
Close
Result
We appointed an M&A adviser in mid 2011 with strong US coverage to exploit this market which has the largest number of suitable trade buyers. Planit was subsequently sold to Vero Software in September 2011 generating a strong return for our investors.
