Caledonia expands US industrial portfolio

published 1 October 2012

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.

The businesses acquired include a mechanical controls and components manufacturer for the lawn and garden sector, a plastic injection parts maker for the battery and heavy duty truck industries and a electronic cables specialist.

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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."