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Acquisition from Legal & General April 2005

Vision Capital has today announced that it has exchanged contracts for the acquisition of a portfolio of seven companies from Legal & General Ventures (“LGV”) for an undisclosed sum.  Completion of the transaction will be subject to clearance from competition authorities and relevant consents.

This is an innovative transaction which serves as a comprehensive exit solution for the mature assets within the portfolio of a successful private equity firm.

Vision Capital will acquire LGV’s interests in seven companies including: Trident Components Group, a European leader in the manufacture of automotive components; Coal Products Limited, the largest UK manufacturer of smokeless fuels; and TM Group, the UK’s largest national independent chain of convenience stores comprising Forbuoys, RS McColls, More, Dillons and Martins.  The portfolio also includes interests in IPT, Interdean, Unipoly and Aluset.

The portfolio is being acquired by new Vision Capital investment partnerships with a total of €120 million of committed capital.  The funds include a provision for follow-on capital to be made available to the underlying companies. The investors in the new partnership include funds managed by Goldman Sachs Asset Management, Landmark Partners and Paul Capital Partners.

Vision Capital, along with Goldman Sachs Asset Management, has pioneered the concept of acquiring direct portfolios from private equity firms and their investors.  Although a relatively recent innovation, the sale of portfolios, rather than individual companies, offers private equity investors a strategic and comprehensive exit route for their investments.

The transaction demonstrates Vision Capital’s leadership in the direct portfolio market, following its previous acquisitions of portfolios from CS Structured Credit Fund in 2004, and from Morgan Grenfell Private Equity in 2003.

Julian Mash, Chief Executive of Vision Capital, said:

“We are delighted to be acquiring this portfolio from LGV with the support of Goldman Sachs and our other investors.  It includes attractive established businesses with potential for further growth over time, and we look forward to supporting their management teams to realise this.  The deal provides further evidence that direct portfolio transactions can offer a strategic, competitive and comprehensive exit solution for private equity firms and their investors.”

Adrian Johnson, Chief Executive of Legal & General Ventures, said:

“This transaction has removed an area of complexity from the historic LGV portfolio, allowing us to completely focus on the UK sectors of leisure, consumer and services.  We are delighted to have realised value, in the case of TCG, where two years ago there appeared to be none.  Credit must go to Stuart Wallis, our Chairman, and Roger Burdett who we brought into the business in 2003.  Roger has completely turned things round and deserves the opportunity to take the business forward in partnership with Vision Capital.  Julian Mash and his team have been thoroughly straightforward to deal with.”

Vision Capital is a limited liability partnership | Registered in England number: OC336240 | Authorised and regulated by the Financial Conduct Authority