Keyhaven Capital backed Total Capital Partners’ acquisition of Precise Component Manufacture Ltd, a precision engineering services business in the UK. The transaction is Keyhaven’s second direct secondaries deal with Total Capital. The firm in 2018 partnered with Total Capital in the secondary direct of GRITIT, an outdoor infrastructure compliance and maintenance business in the UK.
Keyhaven Capital (“Keyhaven”), the specialist secondaries private equity firm dedicated to the European lower mid-market, has backed Total Capital Partners (“Total Capital”) in its acquisition of Precise Component Manufacture Limited (“PCML”), a specialised, tech-led precision engineering services business based in the UK.
This is the second secondary direct transaction that Keyhaven has made with Total Capital. In November 2018, Keyhaven partnered with Total Capital in the secondary direct investment of GRITIT, a leading technology-enabled outdoor infrastructure compliance and maintenance business in the UK. Total Capital’s deep experience, strategic vision and thorough knowledge of the UK lower mid-market make it a preferred Keyhaven local partner for transactions in this space.
Headquartered in Cambridgeshire and with five manufacturing sites in East Anglia, PCML’s strategic aim is to become the UK’s leading biomedical science manufacturing hub by providing rapid-turnaround manufacturing of complex custom components and assemblies to clients in R&D intensive industries.
PCML has demonstrated resilient trading during the last year and has continued full operations throughout the coronavirus crisis. Importantly, it played a leading role in the ventilator project during the first wave of the pandemic in the UK. In addition, the company manufactures and assembles for leading biomedical customers developing coronavirus and other diagnostic testing equipment. Plans to further accelerate the growth of the business include targeted acquisitions and strengthening its core activities, accreditations and market share in the bio science, medical, scientific equipment, and high-tech industrial sectors.
In keeping with Keyhaven’s core investment principles, Total Capital has a specific focus on ESG and working with their portfolio companies to develop, implement and improve their policies over the investment period.
Commenting on the announcement, Sasha van de Water, Managing Partner at Keyhaven said:
“It is a pleasure to be teaming up again with Total Capital for the investment in PCML. Total Capital’s innovative approach to funding lower mid-market businesses in the UK differentiates it from the competition and provides access to exciting opportunities in this space. PCML is another example of just that type of opportunity.
“We continue to benefit from a strong pipeline of secondary investment opportunities both in the UK and throughout Europe, with a focus on secondary direct opportunities in businesses that are growing in these uncertain times and which are able to take advantage of market disruptions.
Natalie Eastham, Managing Partner at Total Capital commented:
“We are delighted to be a trusted local partner for Keyhaven Capital in the UK and to have an opportunity to work with them again. PCML is an innovative, agile engineering business serving some of the most forward-looking developments in the UK bio science, medical, scientific and other sectors. This is an exciting opportunity to work with a high-growth, tech-enabled business as it embarks on the next stage of its development.”
About Keyhaven Capital
Keyhaven is a specialist secondaries private equity firm dedicated to the European lower mid-market. With a diverse team, a network embedded in local markets and a flexible approach to deal making, Keyhaven works with niche industry leaders to accelerate growth, building robust, sustainable businesses that deliver for their investors, employees and local communities.
Since its foundation in 2003, Keyhaven has invested or advised on in excess of €2 billion and made more than 60 secondaries investments in Europe.
About Total Capital Partners
Established in 2008, Total Capital Partners provides single source financing for established SMEs with a funding requirement of up to £30 million. The focus is on investing in businesses with an identified niche in their market, led by highly motivated and ambitious management teams committed to delivering growth. The Total Capital funding solution offers enhanced flexibility, tailored to the specific needs of each business. Total Capital’s approach delivers an attractive blend of returns to its investors comprising cash yield, contractual return and equity upside. The downside protection and the swift return of capital makes for a highly attractive alternative to the typical leveraged model for investors.