The investment has been structured through newly created preferred ordinary shares that will provide a dividend yield to Caledonia whilst fully participating in the equity value of the company. The firm bought its interest through the purchase of 200,000 preferred ordinary shares from each of Sofina, the quoted Belgian investment holding company, and B&W International.
For the year ended 30 September 2010 the company posted EBITDA of £13m, consolidated profit before tax of £6.5m and consolidated gross assets of £80.2m. The company is expected to report EBITDA in excess of £18m for the year ended 30 September 2011.
Duncan Johnson, head of unquoted investments at Caledonia, said, “We are delighted to be partnering with Joe Atkins on the next phase of the Bowers & Wilkins’ journey. Bowers & Wilkins is a great business with a truly global reach across the range of premium audio segments where it competes.
“The company fits the Caledonia investment model where we look to match our capital with businesses which seek to grow over the longer term and our partnership model is valued by all stakeholders,” he added.
In May Sofina also sold its stake in smart metering company Landis+Gyr to Japanese electronics conglomerate Toshiba, which bought the company from private equity backers for $2.3bn with an eye to creating the world’s largest smart grid company.
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