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DJ Capital for Colleagues plc Portfolio Update - Cotswold Valves

 
TIDMCFCP 
 
Capital for Colleagues plc / EPIC: CFCP / Market: NEX / Sector: Investment 
 
24 January 2018 
 
                          CAPITAL FOR COLLEAGUES PLC 
 
                  ('Capital for Colleagues' or the 'Company') 
 
                      PORTFOLIO UPDATE - COTSWOLD VALVES 
 
Capital for Colleagues, the investment vehicle focused on opportunities in the 
Employee Owned Business ('EOB') sector, is pleased to announce an important 
corporate development at its existing portfolio company, Cotswold Valves 
Limited ('CVL'). 
 
CVL, based at Stonehouse near Stroud, is a long-established supplier of 
specialist valves for a range of process industries, predominantly in the UK, 
including food and paper production, water and waste treatment.  Capital for 
Colleagues invested GBP 200,000 in CVL in 2015 and currently owns 49% of that 
company's issued ordinary share capital. 
 
On 22 January 2018, CVL acquired the entire issued share capital of Flow 
Control Company Limited ('FCCL'). FCCL operates in the same sector as CVL, but 
has greater scale. The Directors of Capital for Colleagues believe that the 
acquisition will give CVL the critical mass required to further expand and 
diversify its business, thereby enhancing the value of the Company's equity 
investment in CVL. 
 
As part of the transaction, Capital for Colleagues has agreed to make a working 
capital loan of GBP300,000 to FCCL (the 'FCCL Loan'), which is in addition to the 
Company's existing GBP50,000 loan to CVL. The FCCL Loan bears interest at a 
commercial rate and is secured by a debenture over the assets of FCCL. 
 
On completion of the acquisition, all employees of the enlarged business will 
be beneficiaries of the existing CVL Employee Ownership Trust (EOT), which 
holds 51% of the issued ordinary share capital of CVL. 
 
The Company's joint venture, Castlefield Corporate Advisory Partners, was 
responsible for identifying the acquisition, advising Capital for Colleagues on 
the terms of its additional finance and managing the transaction to completion. 
 
The Directors of the Company are responsible for the contents of this 
announcement. 
 
**ENDS** 
 
For further information, please visit www.capitalforcolleagues.com or contact: 
 
 
CAPITAL FOR COLLEAGUES PLC                                      0161 464 3260 
Richard Bailey, Chairman 
John Eckersley, Chief Executive 
 
PETERHOUSE CORPORATE FINANCE LIMITED                            020 7469 0930 
Mark Anwyl 
Duncan Vasey 
 
Capital for Colleagues 
 
Capital for Colleagues is an investment company focused on the UK EOB sector. 
The Company has a proven management team, with a wide network of contacts and 
affiliates, as well as established access to investment opportunities, enabling 
the Company to execute its strategy and capitalise on EOB-focused investment 
opportunities. 
 
The Company's joint venture, Castlefield Corporate Advisory Partners, educates 
and assists companies which are looking to launch employee ownership schemes, 
advising them, amongst other things, on how to secure investment and achieve 
their objectives. 
 
Market Abuse Regulation (MAR) Disclosure 
 
The information contained within this announcement is deemed by the Company to 
constitute inside information as stipulated under the Market Abuse Regulation 
(EU) No. 596/2014. Upon the publication of this announcement via a Regulatory 
Information Service, this inside information is now considered to be in the 
public domain. 
 
 
 
END 
 

(END) Dow Jones Newswires

January 24, 2018 02:00 ET (07:00 GMT)