Foresight Enterprise VCT PLC
Exit: Sale of portfolio company TFC Europe to AFC Industries delivers 12.6x cash-on-cash return for Foresight Enterprise VCT and other funds managed by Foresight Group
The Board of Foresight Enterprise VCT Plc (the “Company”) is pleased to announce the successful sale on 29 June 2022 of portfolio company TFC Europe Limited (“TFC”), a leading European supplier of technical fasteners and wave springs, to AFC Industries Inc. (“AFC”), which provides inventory management solutions including a wide range of fasteners alongside technical service support to customers in North America. AFC is a portfolio company of Bertram Capital, a private equity firm based in California.
The transaction generated proceeds of £15.4 million at completion. When added to £2.3m of cash returned to date, this implies a total cash-on-cash return of 12.6 times the original investment, equivalent to an IRR of 23% since the initial investment in 2007. Following the sale of Codeplay Software Limited, announced on 6 June 2022, and before the dividend of 3.5p per ordinary share due to be issued on 30 June 2022, the Company’s NAV per ordinary share stood at 71.2p, to which this sale will add 1.1p, giving a pro forma NAV per ordinary share of 72.3p.
Since the original investment, the manager, Foresight Group, has taken a proactive approach to supporting TFC, helping to extend its network in the UK and Germany. TFC also rapidly expanded its vendor managed inventory service, growing the customer base, so it now provides a market-leading service to SMEs and international global brands operating across a range of industries. Foresight Group supported three acquisitions as well as considerable investment in new and existing facilities, opening new sites in England, Northern Ireland and Czech Republic.
Throughout the COVID-19 pandemic, TFC continued to invest in its organic growth strategy, ensuring it was well positioned to deliver best in class service to its customers. This approach positioned TFC for its current period of rapid growth.
Raymond Abbott, Chairperson of Foresight Enterprise VCT Plc said: “TFC is market leading, providing best in class service to a range of customers throughout the UK and Europe. With Foresight Group’s support TFC has grown its geographic footprint, notably expanding its operations in the UK and Germany. We are delighted that Foresight has been able to help Morgan and team and wish them every success over the coming years.”
For Information Contact
Gary Fraser, Foresight Group: 02036678100