Global investment bank GCA Altium has advised Deep Sea Electronics (DSE) on the sale of a majority stake to Caledonia Investments plc (Caledonia), for a consideration of GBP162 million.
Investment trust company Caledonia, which is listed on the London Stock Exchange, has acquired a majority stake in DSE, a manufacturer of controllers for diesel-powered electricity generators and intelligent battery chargers, as it looks to expand its global presence.
Founded in 1975, DSE operates globally, providing products to support public sector infrastructure projects and defence applications, as well as diverse applications across industry sectors, including oil and gas, telecoms, construction, power distribution and facilities management. The company currently has 170 employees and is headquartered in Hunmanby, Yorkshire.
The investment will allow DSE to expand its global presence, and represents the largest initial investment by Caledonia’s Unquoted pool since its inception in 2011.
The shareholders of DSE were advised by GCA Altium’s Stuart Warriner, Dominic Orsini, Andy Battersby and Rob Liguz.
David Thomson, DSE’s Managing Director, says: “I am delighted to welcome Caledonia as DSE’s new owner. With Caledonia’s financial support, flexibility and long-term investment horizon, I am confident that we can build on DSE’s well-established reputation for product quality, technical capability and customer service to take advantage of the significant growth potential in our chosen markets.”
Ed Sheader and Stan Archer, co-owners of DSE, says: “As co-owners of DSE for nearly 40 years, we were keen find a buyer who would be committed to the long-term development of the business and secure employment opportunities for the workforce. We are therefore delighted to pass the company on to Caledonia, with its backing by the Cayzer family and reputation as a long-term, supportive investor, and wish them and David Thomson and his team every success in the future.”
Addleshaw Goddard provided legal advice to the vendors, whilst commercial and financial due diligence advice were respectively provided by CiL and PwC Leeds. Taylor Wessing and PwC London respectively provided legal and financial due diligence advice to Caledonia, whilst Deloitte provided tax advice and Wyvern Partners provided debt advice. Park Place Corporate Finance and Squire Patton Boggs advised management.
