HgCapital : agrees to sell SFC KOENIG to IDEX

28 Jul 2016

HgCapital, the Manager of HgCapital Trust plc ('The Trust'), has announced that it has agreed the sale of SFC KOENIG, a Switzerland-based, leading provider of high-quality, sealing and flow control technology, to IDEX, a producer of highly engineered fluidics systems and components in the USA. Completion is subject to, amongst other things, regulatory approval.

The Trust, the listed investment trust which participates in all HgCapital's investments alongside its institutional clients, will realise cash proceeds of approximately £5.6 million on completion of the transaction. This represents an uplift of £0.8 million (15%) over the carrying value of £4.8 million in the Net Asset Value ('NAV') of the Trust at 31 May 2016 which was based on the Directors' valuation as at 31 December 2015.

Based on the 31 May 2016 reported NAV (including all announced transactions), the pro-forma NAV of the Trust is expected to increase to £520.5 million or 1,394.4 pence per share. The Trust's liquid resources available for future deployment are estimated to be £20.4 million (4% of the pro-forma 31 May 2016 NAV).

The investments within the Trust portfolio were last valued at 31 December 2015. The Trust's 2016 interim results, including the re-valuation of the portfolio as at 30 June 2016 will be announced on 12 September 2016.

HgCapital agrees to sell SFC KOENIG to IDEX

28 July 2016: HgCapital is pleased to announce that it has agreed the sale of SFC KOENIG, a Switzerland-based, leading provider of high-quality, sealing and flow control technology, to IDEX Corporation ('IDEX'), a producer of highly engineered fluidics systems and components in the USA. Completion is subject to, amongst other things, regulatory approval.

With roots in custom-made sheet metal working in Zurich since 1927, SFC KOENIG first evolved into current form in 1985. Since then it has grown to serve markets across the world with a range of sealing and flow control technologies including its core products, the KOENIG EXPANDER® sealing plugs and KOENIG RESTRICTOR® orifices.

HgCapital initially invested in the autumn of 2008, alongside Swiss private equity firm, Capvis. Since that time, HgCapital has supported the SFC KOENIG team in various initiatives to accelerate revenue growth and has invested significantly into international expansion and R&D.

'We are happy to join the IDEX family, a platform which convinced us to be an ideal environment to support our ideas and achieve our long term targets,' says Alparslan Kütükcüoglu, CEO of SFC KOENIG. 'Both our companies are committed to highly engineered products, innovation and deep customer relationships.'

Arno Poschik, Director at HgCapital, said:
'HgCapital is proud to have worked alongside SFC KOENIG since 2008. We found a high quality niche champion in its industry and forged a partnership to support its growth into international markets and the development of its product offering, even through challenging times. This is a firm grounding from which SFC can continue to grow and IDEX is an excellent partner to help put this into practice.'

- Ends -

For further details:

HgCapital
Laura Dixon
+44 (0)20 7089 7888

Maitland
Jamie Dunkley
+44 (0)20 7379 5151
Tom Eckersley
+44 (0)20 7379 5151

About HgCapital Trust plc

HgCapital Trust plc is an investment trust whose shares are listed on the London Stock Exchange (ticker: HGT.L). The Trust is a client of HgCapital, giving investors exposure to a portfolio of high-growth private companies, through a liquid vehicle. New investments and existing portfolio companies are managed by HgCapital, an experienced and well-resourced private equity firm with a long-term track record of delivering superior risk-adjusted returns for its investors. For further details, please see www.hgcapitaltrust.com.

Neither the contents of HgCapital Trust's, HgCapital's, SFC KOENIG's, nor IDEX's websites nor the contents of any website accessible from hyperlinks on the websites (or any other website) is incorporated into, or forms part of, this announcement.

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