Duke Capital invests another £4m in BPVA Ireland

3rd May 2024 11:16

(Sharecast News) - Duke Capital announced a follow-on investment of £4m into its existing capital partner, BPVA Ireland, on Friday.

The AIM-traded company said the investment was intended to facilitate BPVA's acquisition of Sabeo Holdings, an IT contracting and talent acquisition business, and to reorganise the shareholder base by buying out certain minority investors.

BPVA, established in 2018, follows a buy-and-build strategy within the Ireland and UK staffing and resourcing sector, with current holdings including Brightwater Selection Ireland, PharmEng, and Vantage Resources.

With the financing, Duke's total investment in BPVA reached £17.7m, aligning with its typical cost of capital terms.

The board said the reconfiguration of the shareholder register would ensure alignment with BPVA's strategy of extending market position through organic growth and synergistic and value-accretive merger and acquisition activities.

Duke would maintain its 30% equity stake in BPVA, having now supported four major acquisitions, resulting in BPVA encompassing seven subsidiaries.

"We are delighted to continue our partnership with BPVA as we support their latest acquisition and minority shareholder buyout," said chief executive officer Neil Johnson.

"This strategic move expands the business and empowers BPVA's management team to strengthen their ownership stake.

"Through our ongoing commitment to providing capital support, we are confident in the ability of BPVA to continue to succeed."

At 1101 BST, shares in Duke Capital were flat at 32p.

Reporting by Josh White for Sharecast.com.