REG - Duke Capital - Follow-On Investment into United Glass Group

Duke CapitalAnnouncement

03/09/2024 07:00

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RNS Number : 6018C  Duke Capital Limited  03 September 2024

3 September 2024

 

Duke Capital Limited

 

("Duke Capital", "Duke" or the "Company")

 

Follow-On Investment into United Glass Group

Duke Capital Limited (AIM: DUKE), a leading provider of hybrid capital
solutions for SME business owners in Europe and North America, is pleased to
announce a follow-on investment of £3.0 million into its existing capital
partner, United Glass Group ("UGG"). This investment will enable UGG to
complete its latest acquisition.

UGG is a progressive and service-orientated group of architectural glass
processing companies that has been operating in the UK market since the early
1980s. UGG is currently comprised of three operating subsidiaries; Brownhills
Glass Company Limited, Tufwell Glass Limited and London Architectural Glass
Limited.

Highlights:

 

·       Duke's funds will be used to facilitate UGG's acquisition of
Premier Double Glazed Units Limited ("Premier"), a business with market
leading automated manufacturing capability of insulated glass units including
triple-glazed.

·       The financing increases Duke's total investment in UGG to
£15.0 million. The investment terms are in line with Duke's typical cost of
capital, including the +/- 6% annual revenue adjustment factor in respect of
payments due.

·       This transaction represents the first acquisition by UGG since
Duke completed the secondary share purchase transaction earlier in 2024, which
saw Duke's equity stake in UGG increase to 73.8%.

 

Neil Johnson, CEO of Duke Capital, said:

 

"This latest funding increases our total investment in a partner which has
consistently delivered since we first commenced our partnership in 2018. It is
pleasing to see UGG successfully executing its buy-and-build strategy,
expanding its presence as a national leader in the glass processing market.
UGG's acquisition and strategic progress further validates our decision to
increase our holding in UGG earlier in the year and as a longstanding partner,
we are fully committed to providing the capital and support needed to realise
UGG's vision and drive their continued success."

 

Mark Harrison, CEO of UGG, said:

 

"We are thrilled to announce the acquisition of Premier, which marks a
significant milestone in UGG's journey towards becoming a national leader in
the glass processing industry. This strategic move, supported by our capital
partner, solidifies our position and propels our buy-and-build strategy
forward. With a strengthened platform and a clear vision for growth, we are
poised to drive long-term success and deliver exceptional value across the
industry."

 

Further information regarding Premier

 

Founded in 1996, Premier is a leading manufacturer of glass units in the
Southwest of England. Premier's end-market customers are typically those in
the residential, commercial, and architectural markets.

 

Premier manufactures both double glazed and triple glazed units, specialising
in manufacturing high-quality insulated glass units with an emphasis on energy
efficiency and durability. It also offers bespoke glazing solutions for the
high-end architectural market and operates with best-in-class manufacturing
capabilities and a high degree of automation in the production process.

 

Duke Capital Portfolio

A full list of Duke's current partners is included for reference on the
Partners page of the Company's website: www.dukecapital.com/partners
(http://www.dukecapital.com/partners) .

 

 

***ENDS***

 

For further information, please visit www.dukecapital.com
(http://www.dukecapital.com) or contact:

 

 Duke Capital Limited                                                    Neil Johnson / Charles Cannon Brookes / Hugo Evans  +44 (0) 1481 231 816

 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)  Stephen Keys / Callum Davidson / Michael Johnson    +44 (0) 207 220 0500

 Canaccord Genuity Limited                                               Adam James / Harry Rees                             +44 (0) 207 523 8000

 (Joint Broker)

 SEC Newgate (Financial Communications)                                  Elisabeth Cowell / Alice Cho / Matthew Elliott      + +44 (0) 20 3757 6882 duke@secnewgate.co.uk

 

 

About Duke Capital

 

Duke is a leading provider of hybrid capital solutions for SME business owners
in Europe and North America, combining the best features of both equity and
debt.

 

Since 2017, Duke has provided unique long-term financing which eliminates
re-financing risk and necessity for a short-term exit by providing a unique
'corporate mortgage' while also aligning its returns to grow with the success
of the business.

 

Duke is focused on generating attractive risk-adjusted returns for
shareholders and has a track record of achieving this across market cycles.
Its three investment pillars are capital preservation, attractive dividend
yield, and to provide upside upon exits. Duke is listed on the AIM market
under the ticker DUKE and is headquartered in Guernsey.

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