REG - Apax Global Alpha Ld - Apax IX agrees to sell stake in Authority Brands

Apax Global AlphaAnnouncement

22/09/2022 07:01

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RNS Number : 2038A  Apax Global Alpha Limited  22 September 2022

 

Apax Global Alpha Limited

Apax IX agrees to sell its stake in Authority Brands

 

The Apax IX Fund ("Apax IX"), in which AGA is a limited partner, announced
that it has signed a definitive agreement to sell portfolio company Authority
Brands, a leading US franchisor of residential services. As part of this
transaction, British Columbia Investment Management Corporation ("BCI") will
invest in consortium with majority shareholder the Apax X Fund ("Apax X"). The
purchase price was established by an independent third-party valuation set by
BCI. The transaction is expected to close in Q4 2022, subject to customary
closing conditions.

 

The transaction values AGA's current look through investment in Authority
Brands at approximately €47m. This represents an uplift of c.7% to last
Unaffected Valuations(1) and an uplift of c.€3m (c.€0.01 per share) in the
Adjusted Net Asset Value ("Adjusted NAV") of AGA at 30 June 2022.(2)

 

As AGA is also a limited partner in Apax X, on a look through basis, AGA is
expected to invest approximately €49m in the company.(3) In July 2019, AGA
made a commitment of c.$450m(4) to Apax X.

 

Since the Apax Funds' initial investment in 2018, Authority Brands has grown
from two home service franchisors into the premier home service franchisor in
North America with 12 franchisors currently, expanding into new geographies
and services, and building out a powerful infrastructure.

 

The new consortium intends to build on this success, backing a scaled, market
leading business with a large and stable addressable market, which still has
significant room for continued market share capture and outperformance. The
consortium will continue to partner with the management team in the next phase
of the company's journey as they look to extend their platform through
M&A, and strategic initiatives including franchise development, technology
transformation, and international expansion.

 

"We could not be more pleased than to continue to build the premier
residential services franchisor in partnership with Apax and BCI," said Craig
Donaldson, Chief Executive Officer of Authority Brands. "Both partners will
add substantial value as we aim to capture further share in the highly
fragmented home services market."

 

For more information about the transaction, please visit:
https://www.apax.com/news/press-releases/
(https://www.apax.com/news/press-releases/)

 

END

 

Contact details

Investor Relations - AGA

Lorraine Rees

T: +447889 089 220

E: Lorraine.rees@apax.com

 

 

Footnotes

 1.   Unaffected Valuation is determined as the fair value in the last quarter

    before exit, when valuation is not affected by the exit process (i.e. because
 2.   an exit was signed, or an exit was sufficiently close to being signed that the
      Apax Funds incorporated the expected exit multiple into the quarter end
      valuation)

These figures relate to AGA's look through position of Apax IX's overall
      investment in Authority Brands and are stated before taking into account any
      closing adjustments and translated based on Bloomberg closing rate of EUR/USD
      FX rate on 19 September 2022 of 1.0024.
 3.   These figures relate to AGA's look through position of Apax X's overall

    investment in Authority Brands and are stated before taking into account any
 4.   closing adjustments and translated based on Bloomberg closing rate of EUR/USD
      FX rate on 19 September 2022 of 1.0024.

AGA's commitment in Apax X of c.$450m represents a commitment of $225m in the
      Apax X USD tranche and €199.8m in the Apax X euro tranche

 

Notes

 

 1.  Note that references in this announcement to Apax Global Alpha Limited have
     been abbreviated to "AGA" or "the Company". References to Apax Partners LLP
     have been abbreviated to "Apax Partners" or "the Investment Adviser"

 2.  Please be advised that this announcement may contain inside information as
     stipulated under the Market Abuse Regulations (EU) NO. 596/2014 ("MAR")

 3.  This announcement is not for release, publication or distribution, directly or
     indirectly, in whole or in part, into or within the United States or to "US
     persons" (as defined in Regulation S under the United States Securities Act of
     1933, as amended (the "Securities Act")) or into or within Australia, Canada,
     South Africa or Japan. Recipients of this announcement in jurisdictions
     outside the UK should inform themselves about and observe any applicable legal
     requirements in their jurisdictions. In particular, the distribution of the
     announcement may be restricted by law in certain jurisdictions

 4.  The information presented herein is not an offer for sale within the United
     States of any equity shares or other securities of Apax Global Alpha Limited
     ("AGA"). AGA has not been and will not be registered under the US Investment
     Company Act of 1940, as amended (the "Investment Company Act"). In addition,
     AGA's shares (the "Shares") have not been and will not be registered under the
     Securities Act or any other applicable law of the United States. Consequently,
     the Shares may not be offered or sold or otherwise transferred within the
     United States, or to, or for the account or benefit of, US Persons, except
     pursuant to an exemption from the registration requirements of the Securities
     Act and under circumstances which will not require AGA to register under the
     Investment Company Act. No public offering of the Shares is being made in the
     United States

 5.  This announcement may include forward-looking statements. The words "expect",
     "anticipate", "intends", "plan", "estimate", "aim", "forecast", "project" and
     similar expressions (or their negative) identify certain of these
     forward-looking statements. These forward-looking statements are statements
     regarding AGA's intentions, beliefs or current expectations concerning, among
     other things, AGA's results of operations, financial condition, liquidity,
     prospects, growth and strategies. The forward-looking statements in this
     presentation are based on numerous assumptions regarding AGA's present and
     future business strategies and the environment in which AGA will operate in
     the future. Forward-looking statements involve inherent known and unknown
     risks, uncertainties and contingencies because they relate to events and
     depend on circumstances that may or may not occur in the future and may cause
     the actual results, performance or achievements of AGA to be materially
     different from those expressed or implied by such forward looking statements.
     Many of these risks and uncertainties relate to factors that are beyond AGA's
     ability to control or estimate precisely, such as future market conditions,
     currency fluctuations, the behaviour of other market participants, the actions
     of regulators and other factors such as AGA's ability to continue to obtain
     financing to meet its liquidity needs, changes in the political, social and
     regulatory framework in which AGA operates or in economic or technological
     trends or conditions. Past performance should not be taken as an indication or
     guarantee of future results, and no representation or warranty, express or
     implied, is made regarding future performance. AGA expressly disclaims any
     obligation or undertaking to release any updates or revisions to these
     forward-looking statements to reflect any change in AGA's expectations with
     regard thereto or any change in events, conditions or circumstances on which
     any statement is based after the date of this announcement, or to update or to
     keep current any other information contained in this announcement.
     Accordingly, undue reliance should not be placed on the forward-looking
     statements, which speak only as of the date of this announcement.

 

 

About Apax Global Alpha Limited

 

AGA is a Guernsey registered closed-ended collective investment scheme
incorporated as a non-cellular company that listed on the London Stock
Exchange on 15 June 2015. It is regulated by the Guernsey Financial Services
Commission.

 

AGA's objective is to provide shareholders with capital appreciation from its
investment portfolio and regular dividends. The Company is targeting an
annualised Total Return, across economic cycles, of 12-15% (net of fees and
expenses) including a dividend yield of 5% of Net Asset Value.

 

The investment policy of the Company is to make Private Equity investments in
Apax Funds, and Derived Investments which are investments in equities and debt
derived from the insights gained via Apax Partners' Private Equity activities.

 

Further information regarding the Company and its publications are available
on the Company's website at www.apaxglobalalpha.com.

 

 

About Apax

 

Apax Partners LLP ("Apax") is a leading global private equity advisory firm.
For nearly 50 years, Apax has worked to inspire growth and ideas that
transform businesses. The firm has raised and advised funds with aggregate
commitments of more than $60 billion. The Apax Funds invest in companies
across four global sectors of Tech, Services, Healthcare and
Internet/Consumer. These funds provide long-term equity financing to build and
strengthen world-class companies. For further information about Apax, please
visit www.apax.com (http://www.apax.com) .

 

Apax is authorised and regulated by the Financial Conduct Authority in the UK.

 

 

 

 

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