Caledonia Investments, the FTSE 250 international investment trust, has bought a portfolio of five industrial businesses from US-based operating company Latshaw Enterprises.
The acquisition was made with Nova Capital Management, the specialist acquirer of corporate and private equity portfolios, and has seen Caledonia invest $42m in cash at completion.
MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Duncan Johnson, the head of Caledonia's Unquoted pool, said on Monday morning: "The underlying businesses of Latshaw Enterprises are each established manufacturing operations enjoying strong positions in attractive markets.The businesses are cash generative and our investment has been structured so as to provide a running yield from year one.
"Along with Nova and the Latshaw team we have developed an investment strategy which will see capital value being built and realised over the medium term," he said.
This portfolio acquisition is the third that the company has funded with Nova. Johnson said: "Following the success of the first two investments, we are delighted to be working with the Nova team once again."
-
Is it time to ride the recovery in emerging markets?Interview What's the outlook for emerging markets? Gustavo Medeiros, head of research at Ashmore Group, gives his analysis and reviews progress in developing economies
-
Could the Enterprise Investment Scheme cut your tax bill?The Enterprise Investment Scheme is tax-efficient and potentially lucrative. Taking a chance on the scheme could trim your family’s IHT bill, says David Prosser
