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

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RNS Number : 2090F  Duke Royalty Limited  18 March 2022

18 March 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 CA$10.3
million (approximately £6.2 million) into its existing royalty partner
Creō-Tech Industrial Group Inc. ("Creō-Tech").

 

Creō-Tech is a Canadian holding company that acquires businesses within the
engineering, procurement and construction ("EPC") sector in both commercial
and industrial settings.

 

Highlights:

 

·     Creō-Tech will use this contribution from Duke to acquire
California based MD Stainless Services, which specialises in the design,
engineering, fabrication and installation of sanitary processing systems for
the pharmaceutical, biotech, diary, food and beverage industries

·     The financing increases Duke's total investment into Creō-Tech to
CA$18.5 million (approximately £10.9 million)

·     MD Stainless Services represents Creō-Tech's first acquisition
supported by Duke, in line with Creō-Tech's stated buy-and-build strategy

·     All other terms of the follow-on contribution are the same as
Duke's previous investment into Creō-Tech

 

Neil Johnson, CEO of Duke Royalty, said:

 

"This deal is consistent with our current investment strategy, in that it
supports a strong management team that is executing a buy-and-build model
through the acquisition of long standing, profitable companies in attractive
niche and high margin markets.

 

"With our investment into Creō-Tech last year we successfully entered into
North American markets, and this transaction represents a transformative and
important acquisition for Creō-Tech. Along with our other North America
royalty partner, Atlas Holdings, Creō-Tech demonstrates the global appeal of
Duke's capital and the quality of opportunities in that market."

 

Dirk Maritz, CEO of Creō-Tech, said:

 

"We are incredibly fortunate to partner with Duke Royalty for this venture.
Their capital enables business owners to grow their businesses without
compromising control or ownership and removes refinancing risk. With this
partnership, Creō-Tech continues to pursue further targeted acquisitions that
will fuel continued strategic growth.

 

"This acquisition continues the successful execution on our buy and build
strategy. We now offer the North American market a full-service solution in
very specific niche markets that includes industrial engineering, design,
manufacturing, construction and automation."

 

About MD Stainless Services

 

Founded in 1988, MD Stainless Services is a long-standing, profitable, and
owner-managed business that specialises in the design, engineering,
fabrication and installation of sanitary processing systems for the
pharmaceutical, biotech, diary, food and beverage industries.

 

Engineering & installation includes:

·     complete stainless steel process plants & utility piping

·     water & liquid injection systems

·     de-ionized water systems

·     ozone systems

·     domestic water hook-ups

·     treated water systems & chilled piping systems

·     cooling towers

·     utility stations

·     flow panels

·     enclosures

·     electro-mechanical systems

 

With Creō-Tech's engineering capability, project management expertise and
support, MD Stainless Services is expected to continue growing in existing
markets and gaining a larger share of the food and beverage, pharmaceutical,
nutraceuticals and semi-conductor industries.

 

About Creō-Tech

 

Creō-Tech is a privately-owned group of companies offering innovative
multi-disciplinary engineering and manufacturing applications in energy, power
generation, material handling, mining, manufacturing and processing, food
& beverage, pharmaceuticals, telecommunications and utilities markets. In
addition to its reputable manufacturing, fabrication and electro-mechanical
construction operations, Creō-Tech offers a full complement of services to
the North American Industrial mid-market, including structural, electrical,
mechanical & electro-mechanical design and engineering services, solutions
driven automation and various technical support solutions. Creō-Tech offers a
competitive advantage by executing on a customized approach, to meet client's
needs with innovative solutions. To learn more, visit Creōtechgroup.com.

 

 

***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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