JZ Capital Partners Limited (JZCP), the London listed private equity fund that invests in high quality US and European micro cap companies, has realised its investment in AC TECH for USD18.2 million.
After deducting escrows, JZCP received net proceeds of USD18.2 million from the sale, creating a gain of USD5.5 million (USD0.08 per share) above the May 2011 valuation of USD12.7 million. JZCP purchased AC TECH in 2001 and earned a multiple of capital invested of 5.6x and an IRR of 34.6%. The terms of the transaction are undisclosed.
AC TECH, which is a manufacturer of sealants and chemical products for the aerospace industry that employs 70 people at sites in California, Missouri and Georgia, was purchased by 3M Company.
JZCP is also pleased to announce that it has added another co-investment to its portfolio through an investment in Justrite Manufacturing Company LLC. Based in Des Plaines, Ill, Justrite’s range of products includes safety cabinets, safety cans, spill containment systems and related accessories that are sold to end users worldwide through an extensive network of more than 1,700 North American and international distributors.
Justrite has 200 employees and annual worldwide sales of more than USD50 million. JZCP co-invested with Baird Capital Partners along with Justrite’s management. As of today JZCP currently has 42 investments in its portfolio.
David Zalaznick, JZCP’s Founder and Investment Adviser, says: “AC TECH was part of our legacy portfolio which has almost been fully realised. Our investment in Justrite Manufacturing complements our existing portfolio very well. We remain well positioned to take advantage of the ongoing opportunities in the micro cap market in both the US and Europe.”
