HgCapital sells Pulse Staffin

RNS Number : 1095W

HG Capital Trust PLC

12 November 2010

 



HgCapital Trust Plc

HgCapital has agreed to sell its investment in Pulse Staffing. HgCapital Trust plc, the listed investment trust which invests in all HgCapital's deals alongside its institutional clients, will immediately realise estimated cash proceeds of £29.8 million. The total proceeds to the Trust compare to a carrying value of £22.1 million in the Net Asset Value (NAV) of the Trust at 31 October 2010, an uplift of £7.7 million (24.6 pence per share). Following completion of this and our other recently announced transactions, the estimated NAV of HgCapital Trust plc will be £325.0 million (1,044.9 pence per share basic or 1,029.1 pence per share fully diluted*) and liquid resources are estimated to be £80.0 million (24.6% of the estimated NAV).

*The calculation of fully diluted earnings per share assumes that all subscription shares in issue are exercised at their minimum price of 950 pence.

Set out below is the text of a press release issued today by HgCapital announcing the divestment.

HgCapital sells Pulse Staffing

London, 12 November 2010: HgCapital, the European sector-focused private equity investor, has today announced the sale of Pulse Staffing ("Pulse"), the UK's leading independent health and social care staffing services business. Pulse is being sold for an undisclosed sum.  The return on capital invested delivers an investment multiple of 2.0x original cost for HgCapital's clients.

Pulse provides outsourced bank management services to large NHS Trusts and delivers care and nursing support to people with complex conditions in their own homes. For the second year running Pulse was awarded Best Staffing Agency of the Year by Health Investor and was recognised in the Sunday Times' 100 Best Companies.   

This transaction represents the second recent exit by HgCapital's funds, following the partial realisation of Visma in September 2010 for an investment multiple of 3.7x original cost.

Commenting on the investment, Lindsay Dibden, Partner and Head of HgCapital's Healthcare team, stated: "We are delighted with this outcome for our investment in Pulse. We first invested in the company in 1999 and have continued to support the company through the significant market changes which have taken place during our period of ownership. This disposal represents the second exit by HgCapital in a little over a month and is further evidence that our long-term sector-focused investment strategy is paying off.  Under the CEO, Richard Macmillan's, direction, the business has been successfully diversified into the broad-based provider of health and social care professionals that it is today."

Richard Macmillan, chief executive of Pulse Staffing, said: "Working alongside HgCapital over the last five years has been a great experience with Pulse undergoing a lot of positive changes with their support. This new deal is a good result for all the parties concerned. We wish HgCapital well as we look forward to our own future under new ownership."

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For further details please contact:

HgCapital:                 Lindsay Dibden [phone]

HgCapital Trust:      Roger Mountford [phone]

Maitland:                   Neil Bennett [phone]

Pulse Staffing:           Richard Macmillan: [phone]

About Pulse

Pulse provides a wide range of recruitment and bank management services to some of the largest NHS trusts and healthcare providers in the UK based on its ability to demonstrate significant cost savings. It also works with hospitals in Australia, New Zealand and the Middle East.

In response to the growing demand for care outside the hospital environment Pulse has invested significantly in the development of its in-community services. 4,000 people work for Pulse every day across its range of services. For further details, please see www.pulsejobs.com

About HgCapital Trust plc

HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange. The Trust is a client of HgCapital, giving investors exposure to a portfolio of high‐growth private companies, through a liquid vehicle. New investments and existing portfolio companies are managed by HgCapital, an experienced and well resourced private equity firm with a long‐term track record of delivering superior risk‐adjusted returns for its investors. The Trust has won the Investment Week Private Equity Investment Trust of the Year in 2005, 2006, 2007, 2008 and 2009. For further details, please see www.hgcapitaltrust.com

About HgCapital

HgCapital is a sector focused private equity investor in the European mid-market. We focus on investments with an enterprise value in the range of £50-£500 million. Our business model combines sector specialisation with dedicated, pro-active support to our portfolio companies as well as the corresponding management expertise across all phases of the investment process. HgCapital manages over £3 billion for some of the world's leading institutional and private investors. For further details, please see www.hgcapital.com

Neither the contents of HgCapital's, HgCapital Trust's or Pulse's website nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.

 

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