Electra partially realises Allflex investment

Electra Partners announced on Friday that, on behalf of Electra Private Equity, it has partially realised its investment in Allflex Corporation in a series of transactions between Allflex, its shareholders and Public Sector Pension Investment Board, a Crown corporation in Canada.

The FTSE 250 firm said it has received total proceeds of €72m from the redemption of preferred equity and from the sale of 28% of its 15% equity interest.

This is equivalent to the return of 0.8x cost, Electra said.

Additionally, Electra retains an interest in Allflex with a value of €78m, using the valuation implied by the transaction, which represents an uplift of 48% on the valuation of the investment at 31 March or an increase in net asset value by 81p per share.

“Electra originally invested in Allflex in 1998,” the board confirmed in a statement.

“In 2013 Electra sold its investment in Allflex, generating a return of 15x original cost and an internal rate of return of 28%.”

Electra then made a new equity investment of £57m for a minority stake in Allflex alongside BC Partners.

“In 2015 Electra made a further investment of £11m to support Allflex's $250m acquisition of SCR.”

The return on the 2013 investment is current;y 1.8x original cost and an internal rate of return of 24% at the transaction’s implied value.