REG - Duke Royalty Limited - Follow-On Investment into Existing Royalty Partner

Duke CapitalAnnouncement

25/02/2022 07:16

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RNS Number : 7867C  Duke Royalty Limited  25 February 2022

25 February 2022

 Duke Royalty Limited

 

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

 

Follow-On Investment into Existing Royalty Partner

 

 

Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions
to a diversified range of profitable and long-established businesses in Europe
and North America, is pleased to announce a follow-on investment of £1.5
million into its existing royalty partner Lynx Equity (UK) Ltd. ("Lynx UK").

 

Highlights:

 

 ·  Lynx UK will use this contribution from Duke to acquire Danish equipment
 manufacturer, Obel-P Automation A/S ("Obel-P"), which was agreed earlier this
 month
 · This is Lynx UK's eighth acquisition completed within the UK and Europe
 and Duke's follow-on investment further diversifies both Duke's portfolio and
 Lynx UK's revenue and EBITDA base
 ·  The financing increases Duke's total investment into Lynx UK to £15.0
 million and marks the realisation of the initial financing commitment as its
 preferred European capital partner as announced in October 2017
 · All other terms of the £1.5 million contribution are the same as Duke's
 previous investment made into Lynx UK

 

Neil Johnson, CEO of Duke Royalty, said:

 

"Since 2017, Lynx UK has continued to find long-standing, profitable private
businesses that meet our shared criteria for investment. Our near five-year
partnership for expanding into Europe has been a collective success for Lynx
UK, the businesses owners they acquire, Duke and our shareholders.

 

"Lynx Equity Limited, based in Canada, has acquired over 50 companies in the
last 15 years and has revenues of over C$500 million (£300m), which speaks to
their success and the scale of the opportunity. Brad and his team were our
first royalty partner deploying a buy-and-build strategy. Their strong
financial track record is due to a keen focus on acquiring profitable 'old
world' companies at a reasonable multiple, which aligns with Duke Royalty's
royalty criteria."

 

Brad Nathan, President of Lynx Equity Limited, said:

 

"We looked at various funding sources when we set up our European operation
and felt that Duke's long dated capital perfectly suited our expansion plans
in this new geography. Since then, the partnership has worked very well and I
am delighted that we have now completed our eighth acquisition using Duke's
capital. We look forward to maintaining and expanding the close relationship
that we have built with Duke over the last four years."

 

About Obel-P

 

Founded in 1954, Obel-P's is an equipment manufacturing business located in
Herning, Denmark. The Company's equipment is purchased by wood product
manufacturers seeking to optimize their assembly processes and reduce overall
production costs. Obel-P's product lines include mounting machinery designed
to move wooden components along the assembly line as well as high frequency
presses and generators used to combine individual components at the end of the
production process.

 

About Lynx UK

 

Duke entered into a royalty agreement with Lynx UK, a wholly-owned subsidiary
of Lynx Equity Limited, on 5 October 2017 to finance Lynx UK's acquisition
strategy. The total financing commitment was £15.0 million, to be drawn in
tranches, with proceeds being used to acquire target companies in Europe.

 

Lynx UK's European portfolio currently includes UK's Signalhome, Label Express
and Day 2 Interiors, and Denmark's PartnerService, Sundby Trapper, Arkas,
Yding Gruppen and Obel-P Automation.

 

With sales in excess of C$500 million, Lynx Equity Limited is a diversified
private equity firm focused on acquiring small and medium-sized businesses
from owners looking to retire or seeking strategic opportunities. Lynx targets
acquisitions of companies with EBITDA between US$750,000 to US$3 million and
utilises a buy and hold strategy.

 

 

***ENDS***

 

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

 

 Duke Royalty Limited     Neil Johnson / Charles Cannon Brookes / Hugo Evans               +44 (0) 1481 730 613

 Cenkos Securities plc    Stephen Keys / Callum Davidson / Julian Morse / Michael Johnson  +44 (0) 207 397 8900

 (Nominated Adviser

 and Joint Broker)
 Canaccord Genuity        Adam James / Georgina McCooke                                    +44 (0) 207 523 8000

 (Joint Broker)
 SEC Newgate (PR)         Elisabeth Cowell/ Richard Bicknell/ Max Richardson               +44 (0) 20 3757 6880 dukeroyalty@secnewgate.co.uk
                                                                                           (mailto:dukeroyalty@secnewgate.co.uk)

 

 

About Duke Royalty

 

Duke Royalty Limited provides alternative capital solutions to a diversified
range of profitable and long-established businesses in Europe and abroad. Duke
Royalty's experienced team provide financing solutions to private companies
that are in need of capital but whose owners wish to maintain equity control
of their business. Duke Royalty's royalty investments are intended to provide
robust, stable, long term returns to its shareholders. Duke Royalty is listed
on the AIM market under the ticker DUKE and is headquartered in Guernsey.

 

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