REG - Duke Capital - Successful Exit of Investment in Fabrikat

Duke CapitalAnnouncement

07/03/2024 07:00

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RNS Number : 9100F  Duke Capital Limited  07 March 2024

7 March 2024

 

Duke Capital Limited

 

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

 

Successful Exit of Investment in Fabrikat

 

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 the successful exit of its investment in Meteor HoldCo Limited, the
100% owner of Fabrikat (Nottingham) Ltd ("Fabrikat"), a UK manufacturer of
street lighting columns and guard rails.

 

Overview

·  This exit delivers an IRR of 36% for Duke, with further potential gains
available from future performance-related deferred consideration

·   The exit comes three years after Duke's financing solution enabled
Fabrikat's established management team to become majority equity owners

·    Due to the impressive operating performance of the business since the
MBO, Duke has realised a significant equity gain in addition to the return on
its core private credit investment

·     Fabrikat is being acquired by Metalogalva - Irmãos Silvas, SA, a
Portuguese company in the area of engineering and steel protection with more
than 50 years of history and operations spanning across 14 countries and four
continents

·     Duke had invested a total of £6.2 million in Fabrikat to date

·   This represents the eighth exit since inception, with the proceeds
providing Duke with additional liquidity for new and follow-on investment
opportunities

 

Neil Johnson, CEO of Duke Capital, said:

 

"Fabrikat is a real success story for Duke and a great case study for why
Duke's capital is a perfect fit for individuals seeking to execute an MBO. Our
capital allowed long-standing employees of a strong business to step up into
large equity ownership positions and in that role, they continued to prove
themselves as great stewards of the business, creating value for all
stakeholders. In turn, we are pleased to build on our already robust track
record of achieving above-average returns on exits."

 

Paul Allen, CFO of Fabrikat, said:

"We would like to thank Duke Capital for buying into our vision in a way which
motivated us to drive significant growth in the company. Duke's capital
enabled us to execute the MBO while the team supported us by becoming partners
in our growth and success.

"Initially we went through a very competitive process but only Duke Capital's
offer allowed us to keep 70% of the business that we had spent years crafting
as the senior management team. And to top it off, we were able to keep control
of the timing of the sale and the counterparty to whom we entrust the future
of Fabrikat and our employees."

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) . A case study relating to our
partnership with Fabrikat can be found here, providing additional insight on
how we supported their growth strategy.

 

 

***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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