© Deep Sea Electronics Electronics Production | October 16, 2018
UK electrics manufacturer acquired by investment fund in a £162M deal
Caledonia Investments plc announces that it has acquired a majority stake in Deep Sea Electronics Ltd (DSE) in a transaction that values the business at GBP 162.0 million.
Based in North Yorkshire, UK, DSE is a designer and manufacturer of controllers for diesel-powered electricity generators and intelligent battery chargers. The company’s products are used to support public sector infrastructure projects and defence applications, as well as diverse applications across industry sectors, including oil and gas, telecoms, construction, power distribution and facilities management. The company has a workforce of over 170 employees and operates globally, selling to over 150 countries, both direct and through its distributor network. Caledonia has subscribed GBP 117.2m for a 98.9% equity stake and has also provided a short-term bridging loan of GBP 50.0m, which will be replaced in due course by external bank debt. The management team has invested GBP 1.7m for the remaining equity, a press release from the investment fund reads. “We are proud to have become the new owners of DSE and to partner David Thomson and his team in the next stage of the company's development. DSE's consistently strong profitability, high cash generation and leading market position ideally fit our Unquoted pool's investment criteria. We believe there are exciting opportunities to build further on DSE's excellent record and to expand its global presence,” says Duncan Johnson, Caledonia's Head of Unquoted Investments, in the release. “I am delighted to welcome Caledonia as DSE's new owner. With Caledonia's financial support, flexibility and long-term investment horizon, I am confident that we can build on DSE's well-established reputation for product quality, technical capability and customer service to take advantage of the significant growth potential in our chosen markets,” adds David Thomson, DSE's Managing Director.