EverEdge Capital acquires NZ’s largest precision manufacturer
Apollo Precision Manufacturing Limited (Apollo), an investment vehicle managed by EverEdge Capital, has acquired Accord Precision Limited (Accord), NZ’s largest certified precision manufacturing and assembly business.
Accord provides end-to-end precision manufacturing and assembly — from R&D and consultative design through to complete assembly and distribution. The business was established 50 years ago and achieved close to NZD30 million in sales for the year ending 31 March 2021. It has successfully transitioned from being a conventional machine shop to a full-solution provider for sophisticated OEM global customers, including F&P, John Deere, Assa Abloy and Kirby Morgan.
Accord also maintains a comprehensive portfolio of international accreditations and is one of the only manufacturers in New Zealand to hold both ISO and FDA certifications.
Apollo was established to facilitate the acquisition of Accord and is managed by EverEdge Capital. EverEdge Capital is the principal investment arm of EverEdge Global, a specialist adviser focussed on intangible asset strategy, valuation, and commercialisation. EverEdge Capital undertook the acquisition to facilitate the next phase of growth and development for Accord while enabling the retirement of Accord’s owner-managers. The transaction was executed by way of a 100 per cent share purchase.
EverEdge Capital, Chief Investment Officer, Francis Milner, says: "Today, intangible assets are a key driver of value and growth within an organisation. However, these assets are typically absent, mis-priced, or under-valued on balance sheets. This has created a market vacuum whereby this asset class is largely ignored by traditional investment funds and significant intangible asset value remains unrealised or unknown.
“Despite Accord being relatively asset heavy, we identified that some of its most valuable elements are intangible and off-balance sheet. By viewing the business through an investment lens focused on intangible value, we identified several assets that create a material competitive advantage relative to peer businesses. These assets help explain how the business has secured global Tier 1 OEM customers from ‘down-under’ while growing and remaining profitable.
“What is integral to Accord’s value proposition is the alignment of its key intangible assets including technical know-how, systems and controls, long-term customer relationships, skilled critical mass workforce, superior track record, and leading international accreditation. This enables Accord to deliver better customer experiences and results in profitable long-term relationships.
“As intangible assets have the potential to be scaled exponentially, we are looking forward to building on the strong foundations already in place and to leveraging these assets to continue to grow the business and serve our customer ever more effectively.”