BC Partners bids $1.3 bn for electronic animal identification firm Allflex
03 May 2013
British private equity firm Electra Partners today said that it has received a $1.3-billion buyout offer from its peer BC Partners for electronic animal identification company Allflex.
The offer is subject to consultation with the relevant works council in France and certain regulatory approvals.
If the offer is accepted, the deal will generate $630.5 million to clients of Electra Partners, including Electra Private Equity Plc who will receive $398 million on closing, representing a gross return of 15x original cost (including income) over the 14 years of investment.
Electra Partners first invested $160 million 1998 in buying Allflex, whose business has seen strong organic and acquisitive growth driven by increased focus on food chain traceability and mandatory regulations controlling the spread of animal diseases.
To capitalise on increasing demand, Allflex introduced new products, extended tagging to more species, and expanded into new geographical markets such as China and Africa.
David Symondson, deputy managing partner at Electra Partners, said, ''Allflex is an excellent business which has proved to be a first-class investment for Electra Partners delivering strong returns at each of the refinancings over the years and now at the sale.
Over this time, the company has become the leading global provider of animal identification tags with an expanded product range which includes RFID and tissue sampling tags.''
