MTI, the UK early stage investor, and VCF Partners have sold their interests in Advanced Composite Group Holdings (ACG) to UMECO plc for £44.25m. MTI led the March 1999 investment from its 1997 fund. At that time MTI acquired a 41% stake and VCF Partners 20.5%. These, Richard Ford at MTI notes, were reduced to 34% and 20%, respectively, by the time of the sale due to a ratchet based on exit valuation that allowed management to recoup a larger share of the equity if the business performed. Ford also notes that this realisation will push the 1997 fund into positive cash returns territory.
ACG is an international supplier of high performance advanced composites. Ford said: “ACG is a global competitor in the carbon composites industry and has played an important role in world beating achievements, such as supplying the carbon fibre reinforced composite materials to build Alinghi, which became the first European boat to win the America’s Cup in 152 years.”
MTI invested £2.5m and realised £15m.
The sale is not scheduled to finalise until May 5. KPMG did vendor due diligence and SJ Berwin acted for ACG.