12 November 2010
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
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 HGT in 1999 and have continued to support HGT 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.”