Moulton makes maiden Better Capital deal

BECAP, The fund that Better Capital manages, anticipates injecting a total of £20m to finance the transaction and fund future growth, of which £15m (€17.1m) has been released already.

Gardner Group is a supplier to the aerospace industry in Europe and provides a range of complex components to aero structure and engine manufacturers. Based in Ilkeston in Derbyshire, the group has six UK sites and one in Poland.

Gardner Group revenues for the year to 31 August 2008 were £66.2m (€75.4m), with an operating profit of £7.3m (€8.3m). Since the first quarter of 2009 Gardner Group has experienced major declines in demand for its business jet and truck transmission products - both important markets for the business. This decline led to the need to restructure the business.

At 31 August 2008 Gardner Group had net assets of £29.3m (€33.4m). However, after its acquisition and restructure, the company will have minimal third party debt.

Carlyle made a loss on its investment in Gardner Group, which was previously owned by Dunedin Capital and Rolls-Royce, a Financial Times report said.

Jon Moulton raised £142.4m (€162.1m) for his new firm, Better Capital, by floating it on London’s AIM exchange in December.

The public private equity figure caused a stir last year after walking out on Alchemy Partners, the firm he founded, due to a disagreement over the investment strategy the company was adopting.

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