Electra Partners has agreed to sell its interest in feminine hygiene brand Lil-lets Group to Premier Foods, a South African manufacturer and distributor of fast moving consumer goods.
The transaction is subject to regulatory approvals in South Africa.


Allowing for the process of applying for regulatory approvals, on completion Electra Private Equity will receive gross proceeds of GBP37m. Based on the 31 March 2013 valuation of Lil-lets, this level of proceeds would imply a reduction in Electra's diluted NAV per share of 12p. This is explained by a weakening currency in South Africa.


Lil-lets is a branded feminine hygiene business and offers a complete portfolio of feminine hygiene products under one brand. The business occupies market leadership positions in the UK and Africa. Electra invested in the management buyout of Lil-lets in 2006.


Rhian Davies, partner at Electra Partners, the manager of Electra, says: “Lil-lets has undergone a transformation under Electra's ownership and is now positioned as a strong brand in the UK and as a growth business in Africa. Successfully developing the African business has been a key part of the story so far and we are now pleased to see the business being acquired by Premier Foods, which will be able to accelerate Lil-lets's African growth plans using its established distribution channels. The management team, led by Martin Frost, has worked hard to develop the business and we wish them well under new ownership."


Martin Frost, chief executive of Lil-lets, says: "Electra Partners has been a very supportive investor, helping Lil-lets to refresh its products and brand and to turn the African business into a growth engine. We look forward to the future with confidence and to working with Premier Foods to realise the considerable growth opportunities that lie ahead of us in the UK and Africa."


The agreement to sell Lil-lets follows the realisations of esure and Allflex earlier this year which generated a 3x and a 15x return on original cost respectively.
