Foresight venture capital trusts make 10 times return on spectroscopy firm sale
Two venture capital trusts run by Foresight have made more than a 10 times return on the sale of mass spectroscopy accessory manufacturer Specac.
Foresight purchased the Kent-based firm in 2015 from Smiths Group, and in that time pushed it to grow more than 70 per cent in headcount, as well as enabling the business to strengthen its management team and governance, as well as numerous product launches.
The group has been soled to an unnamed American investor for £11.2m, more than 10 times what the VCTs paid for it in 2015.
The sale has generated an internal rate of return (IRR) for the VCTs of 34 per cent.
This will add 0.5p to Foresight Enterprice VCT’s net asset value, bringing it to 61.1p per share, while it will add 0.6p to Foresight VCT’s NAV, bringing it to 86.4p per share.
Founded in 1971, Specac builds high-specification diagnostic equipment to measure the chemical and atomic composition of materials, being used in areas such as pharmaceutical research and food safety.
Margaret Littlejohns, chair of Foresight VCT, said: “Specac provides market leading products to range of customers, globally. With Foresight Group’s support, Specac has grown its product range and customer base materially.
“We are delighted that Foresight Group has been able to help the team achieve this exit and wish them every success over the coming years.”
Michael Gray, chair of Foresight Enterprise VCT, added: “Specac has been a great success story for the company and our shareholders.
“We are delighted that Foresight Group has been able to make such a positive contribution to the growth of the business and we wish Specac continued success.”