LONDON (dpa-AFX) - Caledonia Investments plc (CLDN.L) announced Monday that it has acquired a majority stake in Deep Sea Electronics Ltd or DSE in a transaction that values the business at 162.0 million pounds.
Caledonia has subscribed 117.2 million pounds for a 98.9% equity stake and has also provided a short-term bridging loan of 50.0 million pounds, which will be replaced in due course by external bank debt. The management team has invested 1.7 million pounds for the remaining equity.
UK-based DSE is a manufacturer of controllers for diesel-powered electricity generators and intelligent battery chargers. It has over 170 employees and operates globally, selling to over 150 countries, both direct and through a comprehensive distributor network.
In the financial year to May 31, DSE reported a gross profit of 21.2 million pounds and profit before tax of 12.8 million pounds on turnover of 37.8 million pounds, and, at that date, had gross assets of 35.0 million pounds.
The acquisition is consistent with Caledonia's strategy of investing in well-established private companies, with proven management teams, seeking long-term growth capital.
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