PE Tech Report


Like this article?

Sign up to our free newsletter

Rand Capital to sell Gemcor

Rand Capital Corporation is to sell its 31.25 per cent holding in Gemcor II. The transaction is anticipated to close in the first quarter of 2016, subject to all customary approvals and closing conditions.

Gemcor develops and manufactures automated fastening systems used by virtually every airframe manufacturer throughout the world. Rand made its initial investment in Gemcor in 2004. Its equity cost basis is currently USD625,000 and it expects to receive gross cash proceeds of approximately USD14 million upon the completion of the Gemcor sale. At 30 September, 2015, Gemcor represented approximately 27 per cent of Rand’s total portfolio, with a fair value of USD9.8 million.
Allen (Pete) F Grum, President and Chief Executive Officer of Rand Capital, says: “We were instrumental in supporting the Gemcor management team’s success, both financially and as Directors and owners of the business. Under Bill Mangus and Tony Goddard’s leadership, Gemcor has grown revenue over five times, delivered strong profits and measurably expanded its team. We believe Gemcor will be in a very strong position for continued growth based on the potential sales synergies to be gained with the prospective new owner, as well as the greater amount of financial resources that will be available to them.
“The 10-year compound annual growth rate of Rand’s net asset value was 12.8% at the end of the 2015 third quarter. We believe the success of our Gemcor investment further demonstrates our ability to identify and support opportunities that translate into growing shareholder value. We plan to put the proceeds from the sale back to work by investing in emerging growth companies with strong management teams. We are currently exploring a strong pipeline of opportunities in the venture capital market.”

Like this article? Sign up to our free newsletter