Investment in Wilmcote Holdings plc

RNS Number : 1189A

Marwyn Value Investors Limited

22 March 2017

 

22 March 2017

Marwyn Value Investors Limited ("Marwyn")

Investment in Wilmcote Holdings plc

Marwyn announces the launch of a new management platform, Wilmcote Holdings plc ("Wilmcote"), established in partnership with Adrian Whitfield, who has been appointed as its Chief Executive Officer. Adrian is an experienced executive who recently spent nine years successfully implementing a turnaround and growth strategy at Synthomer plc, the UK listed (FTSE-250) specialty polymer operator. Over Adrian's nine year tenure, he more than doubled operating profits and increased Synthomer's market capitalisation from c.£300 million to over £800 million. Synthomer (formerly known as Yule Catto & Co.) is a global manufacturer of specialty polymers for the coatings, construction, textiles, paper and healthcare industries. Prior to Adrian's role at Synthomer, he was the Chief Executive for the Plastics Division of DS Smith, a manufacturer of paper and packaging products, for seven years.

Wilmcote is focused on creating value through the acquisition and subsequent development of target businesses in the downstream and specialty chemical sectors. Wilmcote intends to acquire and operate businesses initially with an enterprise value in the range of £500 million to £2.0 billion.

On 21 March 2017, Marwyn Asset Management Limited as manager authorised a subscription for £10 million of new ordinary shares in Wilmcote. Marwyn's share of the cost of this investment represents approximately 6.7% of Marwyn's NAV attributable to the Ordinary Shares (measured as at 28 February 2017).

This capital raise of £10 million will provide Wilmcote with due diligence and operating capital prior to an initial platform acquisition. Wilmcote is currently not listed but intends to seek a public listing either before or at the time of completing its initial platform acquisition.

James Corsellis and Mark Brangstrup Watts, the founders of the Marwyn group, are both directors of Wilmcote.

Mark Brangstrup Watts commented: "The investment in Wilmcote Holdings is a further demonstration of our stated strategy to diversify the portfolio by backing proven management teams to deliver strong returns to investors. We are excited to be working with a CEO of Adrian's calibre and look forward to delivering value creation in a sector with such interesting investment opportunities".

Company enquiries:

Louisa Bonney / Scott Danks

Axio Capital Solutions Limited

Telephone: [phone]

PR enquiries:

Alex Child-Villiers / Ed Orlebar

Temple Bar Advisory Limited

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Notes to Editors:

Marwyn's strategy is to identify, support, invest in and work alongside experienced operational management teams in mid-cap businesses headquartered in the UK, Europe or North America, often with global operations.

Marwyn's approach brings private equity-style investment principles to bear in primarily public equity environments. Marwyn acquires equity stakes typically as a cornerstone investor and draws upon capital from a high calibre universe of co-investors which augments purchasing power when pursuing acquisitions and provides an independent validation of Marwyn's investment thesis.

Funds managed by Marwyn Asset Management Limited include investments in BCA Marketplace plc, Zegona Communications plc, Gloo Networks plc, Le Chameau Group plc and Safe Harbour Holdings plc. The private vehicle previously launched as Marwyn Specialty Chemicals plc in September 2016 was subsequently renamed Safe Harbour Holdings plc, with its target focus refined to B2B distribution and outsourcing businesses across a range of sectors.

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