REG - Duke Capital - Follow-On Investment into Existing Capital Partner

Duke CapitalAnnouncement

03/05/2024 07:00

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RNS Number : 0707N  Duke Capital Limited  03 May 2024

3 May 2024

 

Duke Capital Limited

 

("Duke Capital", "Duke" or the "Company")

 

Follow-On Investment into BPVA (Ireland) Limited

Duke Capital Limited (AIM: DUKE), a leading provider of hybrid capital
solutions for SME business owners in Europe and North America, is pleased to
announce a follow-on investment of £4.0 million into its existing capital
partner, BPVA (Ireland) Limited ("BPVA"). This investment will enable BPVA to
complete its latest acquisition as well as reorganise the shareholder base
through the buyout of certain minority investors.

BPVA is an investment holding company established in 2018 to execute a buy and
build strategy of synergistic companies within the Irish/UK staffing and
resourcing sector. Its current holdings include Brightwater Selection
(Ireland) Limited, PharmEng Limited and Vantage Resources Limited.

 

Highlights:

 

·    Duke's funds will be used to facilitate BPVA's acquisition of Sabeo
Holdings Ltd ("Sabeo"), an IT contracting and talent acquisition business, as
well to complete a reconfiguration of the shareholding structure of the BPVA
entity.

·      The financing increases Duke's total investment in BPVA to £17.7
million. The investment terms are in line Duke's typical cost of capital,
including the +/- 6% annual revenue adjustment factor in respect of payments
due.

·     The reconfiguration of the shareholder register will ensure full
alignment of the shareholders with the next stage of the BPVA strategy which
is to extend its market position in existing areas of strength via organic
growth in the existing platform and continue with synergistic and value
accretive M&A.

·        Duke will retain its 30% equity stake.

·      Duke has now supported four major BPVA acquisitions, with the
company now encompassing seven subsidiaries.

 

Neil Johnson, CEO of Duke Capital, said:

 

"We are delighted to continue our partnership with BPVA as we support their
latest acquisition and minority shareholder buyout. This strategic move
expands the business and empowers BPVA's management team to strengthen their
ownership stake. Through our ongoing commitment to providing capital support,
we are confident in the ability of BPVA to continue to succeed."

 

John Hannon & John Lacy, BPVA Group Directors, said:

 

"We are thrilled to announce the acquisition of Sabeo and the reconfigured
shareholder register will strengthen BPVA as it continues to mature as a
platform. This strategic move reflects our unwavering confidence in BPVA's
growth trajectory and our commitment to driving long-term success and we are
empowered as a group to continue to execute our vision for expansion and value
creation in the staffing and resourcing sector in Ireland."

 

Further information regarding Sabeo

 

Founded in 2006, Sabeo is a leading supplier of IT contract and permanent
resourcing solutions to clients in Ireland and the UK. Sabeo services clients
in several sectors including government, commercial, telecommunications,
financial services, banking, software houses and global IT vendors providing a
wide range of IT professionals. For over 15 years, Sabeo has been recognised
as an IT centre of excellence by customers and has been a Deloitte Technology
Fast 50 Awards winner over many years.

Completion of the acquisition of Sabeo by BPVA follows the recent approval
from The Competition and Consumer Protection Commission, which is the
competition regulator responsible for enforcing Irish and European competition
law in the Republic of Ireland.

Duke Capital Portfolio

A full list of Duke's current partners is included for reference on the
Partners page of the Company's website: www.dukecapital.com/partners
(http://www.dukecapital.com/partners) .

 

 

***ENDS***

 

For further information, please visit www.dukecapital.com
(http://www.dukecapital.com) or contact:

 

 Duke Capital Limited                                                    Neil Johnson / Charles Cannon Brookes / Hugo Evans  +44 (0) 1481 231 816

 Cavendish Capital Markets Limited (Nominated Adviser and Joint Broker)  Stephen Keys / Callum Davidson / Michael Johnson    +44 (0) 207 220 0500

 Canaccord Genuity Limited                                               Adam James / Harry Rees                             +44 (0) 207 523 8000

 (Joint Broker)

 SEC Newgate (Financial Communications)                                  Elisabeth Cowell / Alice Cho / Matthew Elliott      + +44 (0) 20 3757 6882 duke@secnewgate.co.uk

 

 

About Duke Capital

 

Duke is a leading provider of hybrid capital solutions for SME business owners
in Europe and North America, combining the best features of both equity and
debt.

 

Since 2017, Duke has provided unique long-term financing which eliminates
re-financing risk and necessity for a short-term exit by providing a unique
'corporate mortgage' while also aligning its returns to grow with the success
of the business.

 

Duke is focused on generating attractive risk-adjusted returns for
shareholders and has a track record of achieving this across market cycles.
Its three investment pillars are capital preservation, attractive dividend
yield, and to provide upside upon exits. Duke is listed on the AIM market
under the ticker DUKE and is headquartered in Guernsey.

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