Candover Investments plc’s Candover Partners Ltd. unit agreed to sell Equity Trust Holding Sarl, a provider of business administration and fiduciary services, to Doughty Hanson for an enterprise value of €350 million. The deal represents a 24 percent uplift to the valuation of the business as at 30 June 2010 and a return of 1.5 times cost.
Candover Investments plc announces that its wholly owned subsidiary, Candover Partners Limited, has agreed the sale of Equity Trust Holding Sarl (“Equity Trust”), a leading global provider of complex, high-end business administration and fiduciary services, to Doughty Hanson for an enterprise value of €350m. The transaction remains subject to regulatory approvals and competition clearance which are expected by the end of the year.
The sale of Equity Trust represents a 24 per cent uplift to the valuation of the business as at 30 June 2010 and a return of 1.5 times cost. The sale will generate estimated cash proceeds of €24.2m (£19.9m), including carried interest for Candover Investments plc. The cash proceeds include an initial payment of € 15.8m (£13.0m) and a guaranteed deferred payment of €8.4m (£6.9m), payable no later than 30 June 2011. The sale of Equity Trust will result in an increase of 22p per share (unaudited) in the net asset value of Candover Investments plc as at 30th June, 2010. Following completion of the sale, the 2001 Fund will have a gross realised return of 1.7x or €4.0bn, with three investments still to be fully realised.
Candover acquired Equity Trust in May 2003 and supported a number of strategic acquisitions, notably that of ABN Amro’s Trust business in 2005. Under Candover’s ownership, revenues increased from €60m in 2003 to €140m in 2010.
* Candover means Candover Investments plc and / or one or more of its subsidiaries, including Candover Partners Limited
as General Partner/Manager of the Candover 1997, 2001, 2005 and 2008 Funds.
For further information, please contact:
Tulchan +44 20 7353 4200
Notes to Editors:
Candover is a private equity house which has invested in 137 buyouts worth €46 billion since its formation in 1980.
Equity Trust is the world’s leading independent provider of high-end administrative and fiduciary services. Established in 1970, the company started life as an affiliate of a Dutch law firm, providing international corporate secretarial services. In 2003, the business underwent a management buyout, cementing its position as an independent provider, with no ties to a bank or law firm. Key Equity Trust acquisitions have included: the trust operations of Standard Chartered Bank in 2004; the global trust and fiduciary business of ABN AMRO Bank (2005); Ernst and Young’s domiciliation and related corporate secretarial services in Luxembourg (2006); and in 2008, Equity Fund Services, the fund administration unit of Equity Trust, was merged with Custom House Global Fund Services Ltd.