Investment

RNS Number : 1502C

EPE Special Opportunities Limited

07 October 2022

 

EPE Special Opportunities Limited

Investment

EPE Special Opportunities Limited ("ESO" or the "Company") is pleased to announce that ESO Investments 1 Limited (an undertaking of ESO, in which it is the sole investor) ("ESO 1") has completed a £2.0 million growth capital investment into Denzel's Limited ("Denzel's").

Denzel's is a fast-growing, healthy and sustainable premium dog snacks brand. Denzel's products are made in the UK and Ireland using entirely natural ingredients and 100% plastic-free eco-friendly packaging.

Denzel's operates an omni-channel distribution strategy, underpinned by listings in some of the UK's leading retailers including Tesco, Sainsbury's, Asda, Wilko, SPAR and, most recently, Waitrose, which launched the Denzel's range in October. Denzel's launched its new website in late August ( www.denzels.co.uk ), which is the flagship of its online channel, complemented by listings on both Amazon and Ocado, allowing for direct-to-home delivery of its products as well as subscriptions. In addition, Denzel's products are available in a range of hospitality locations, notably dog-friendly pubs and hotels across the UK, providing dog owners with access to Denzel's for their dogs when they are out and about. Denzel's products are currently stocked in over two thousand locations in the UK.

Denzel's is part of the current cohort of the Tesco Incubator Programme, which helps to accelerate best-in-class brands using Tesco's retail infrastructure. Alumni brands include the premium mixers brand Fever-Tree, performance nutrition brand Grenade and the healthy food brand Deliciously Ella.

ESO intends to work closely with Denzel's to help deliver its growth strategy, which is focused on the launch of new products, notably high value and functional dog treats, as well as growth of both offline and online distribution channels.

ESO 1's £2.0 million investment was part of a £3.0 million growth capital raise by Denzel's, in which ESO 1 was the lead investor.

ESO 1's investment in Denzel's was funded by cash reserves advanced from ESO. Following the investment, ESO has available cash of £21.8 million. The investment in Denzel's has no impact on the Company's net asset value.

The investment in Denzel's is consistent with ESO's focus on investing into small and medium sized enterprises ("SMEs"), partnering with management teams to create value through long-term business transformation.

About ESO

● ESO is an AIM-quoted, private equity investment company, whose objective is to provide long-term return on equity for its shareholders by investing in SMEs.

● ESO seeks to invest up to £30 million into companies with strong fundamentals, including defensible competitive positioning and high levels of cash generation, and aims to partner with outstanding management teams to combine operational and financial expertise in each investment.

● ESO will consider most industry sectors, including consumer, retail, manufacturing, financial services and the broader services sectors, and can make direct investments, special situations investments, primary and secondary fund investments and private investments in public equities.

● ESO's investment horizon is flexible, creating the opportunity to maximise value via optimising exit timing, compounding returns and re-investing behind successful management teams.

The person responsible for releasing this information on behalf of the Company is Amanda Robinson of Langham Hall Fund Management (Jersey) Limited.

Enquiries:

EPIC Investment Partners LLP	[phone] James Henderson
Langham Hall Fund Management (Jersey) Limited	[phone] Amanda Robinson
Cardew Group Limited	[phone] Richard Spiegelberg
Numis Securities Limited	[phone]
Nominated Advisor:	Stuart Skinner
Corporate Broker:	Charles Farquhar

 

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