European Capital Ltd. received proceeds of about £40 million for exiting its investment in Inspicio PLC, which is engaged in the testing, inspection and performance conformity markets. In February 2008, European Capital invested £35 million pounds in the 3i Group’s take private of Inspicio. European Capital is an investment company that is managed by an affiliate of American Capital Ltd.
European Capital Limited (“European Capital”) announced today that it has received proceeds of approximately 40 million pounds (48 million euros) from exiting its investment in Inspicio.
Inspicio is a market leading organization in the testing, inspection and performance conformity markets, both in the UK and internationally. Inspicio has more than 8,000 employees and operates in over 130 countries. Its operating businesses include Inspectorate, a global leader in commodity testing and inspection services; the Environmental Scientifics Group, a leading provider of environmental testing services; and the Eclipse Scientific Group, a leading food testing business.
In February 2008, European Capital invested 35 million pounds in the 3i Group’s take private of Inspicio plc. European Capital’s investment took the form of subordinated debt.
On September 8, 2010, Inspicio completed the sale of Inspectorate, its largest division, to Bureau Veritas for 450 million pounds, resulting in the repayment of the Inspicio debt facilities and generating proceeds of approximately 40 million pounds for European Capital. European Capital realized a 13.2% annual blended mezzanine rate of return from the transaction.
“Inspicio has been an excellent debt investment for European Capital and its exit brings European Capital’s London office’s aggregate proceeds of realisations over the last 12 months to over 141 million euros,” said Nathalie Faure Beaulieu, Regional Managing Director of European Capital Financial Services. “European Capital has been pleased to partner with 3i Group, who brought an invaluable contribution to the success of Inspicio.”
“We are pleased to have supported Inspicio and its outstanding management team in the organic and acquisition led growth of the business,” said Jerry Tebbutt, Director of European Capital Financial Services. “We wish 3i and management every success with the continuing development of the environmental and food testing activities.”
For more information about European Capital’s investment in Inspicio, please click here.
ABOUT EUROPEAN CAPITAL
European Capital is an investment company for pan-European equity, mezzanine and senior debt investments with 1.1 billion euros in assets under management. It is managed by European Capital Financial Services (Guernsey) Limited (“ECFSG” or the “Investment Manager”), a wholly-owned affiliate of American Capital Ltd.
ABOUT AMERICAN CAPITAL
American Capital Ltd. (Nasdaq: ACAS) is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. Founded in 1986, American Capital has $15 billion in capital resources under management and eight offices in the U.S., Europe and Asia. American Capital and its affiliates will consider investment opportunities from $5 million to $100 million. For further information, please refer to http://www.americancapital.com .
ABOUT 3I GROUP PLC
3i is an international investor focused on buyouts, growth capital and infrastructure, investing across Europe, Asia and North America.
ABOUT BUREAU VERITAS
Bureau Veritas is the world’s second largest group in conformity assessment and certification services. The Group, founded in 1828, has over 39,000 employees in 900 offices and 180 laboratories in 140 countries.
This press release contains forward-looking statements. The statements regarding expected results of European Capital and/or American Capital are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which European Capital and/or American Capital has made investments.