BGF has reported record-breaking results and surging growth in its 2020 Annual Report and Accounts, published today.
Despite the Covid-19 pandemic, BGF actively maintained its risk appetite to keep supporting the economy and backed 61 companies in 2020, investing a total of £384 million during the year. This represented an 11% increase on the previous year, and in the first quarter of 2021 an increase of over 100% on the same quarter in 2020. In total for 2020, £262 million went into new companies across a range of sectors, including life sciences, e-commerce and IT services, while a further £122 million of follow-on funding was deployed to existing portfolio businesses. 2020 was also an equally good year for exits with BGF delivering 28 exits that generated returns of £228 million.
BGF demonstrated a robust and resilient performance with a substantial increase in net assets to £2.3 billion (2019 £1.8 billion). The Group made a year-end operating profit of £346 million reflecting ongoing growth in its underlying portfolio and realisations.
Download full report here.
Stephen Welton, executive chairman, said: “We’ve gone through what we hope will be a once in- a-generation event, and learned that with determination, focus and the right allocation of capital, we can achieve amazing things. BGF’s excellent performance during the pandemic demonstrates the strength of our diversified model, our strong regional approach and the resilience of the entrepreneurs we exist to support. We’re proud that our model stood up under pressure, allowing us to continue investing at an average pace of one new investment a week, despite the upheaval of lockdowns and other challenges. No other equity investor in the land can match that rate of activity. We have a unique investment platform and capability that we want to continue to leverage in full as the economy both recovers and powers ahead in key sectors.”
Andy Gregory, chief investment officer, said: “Because we take a long-term approach to investing, we were able to see past the short-term challenges affecting some of the sectors most impacted by Covid-19, which enabled BGF to continue to deploy capital at a time when it was most needed. All in all, our investment model has proved remarkably effective during the pandemic. I’m confident that our key metrics will only increase in the year ahead.”
2020 highlights include:
An industrious year that broke records
BGF reported record profits in 2020 of £346 million. Since its launch in 2011, BGF has now deployed over £2.5 billion worth of capital and backed more than 400 companies. In 2020, BGF invested in a wide range of companies including earlier-stage businesses, growth-stage businesses and quoted companies across multiple sectors and every region of the UK and Irish economies. E-commerce, technology, life sciences, health and education businesses were standout performers, with continued positive growth across the portfolio. BGF also saw a rise in successful exits across investee businesses due to the availability of private equity capital.
Supported the portfolio during a difficult time
BGF undertook numerous measures to support its portfolio during Covid-19. These included ensuring investment teams developed even closer ties with investee companies, helping them navigate the myriad of government policies and interventions, and focusing on practical support using the full resources of BGF. BGF’s Talent Network, contracted four finance directors with specific turnaround expertise to provide ad hoc support to the portfolio and to help protect value. It also conducted a portfolio management exercise to understand the long-term impacts of Brexit. BGF worked hard to keep investing despite the short-term headwinds, believing that good businesses should not be starved of funding when they need it most. As such, BGF was able to maintain again its position as the most active investor in UK and Irish growth economy companies.
Championing diversity
In 2020, BGF was named the most active equity investor in female-led businesses in the UK by the ScaleUp Institute and Beauhurst. BGF has invested £225m since 2011 in female-led businesses, almost £30m of which was invested in 2020. BGF’s Talent Network also helped to place 11 women on the boards of BGF-backed businesses. To help increase investment in female-run businesses, BGF and Coutts, the private banking arm of NatWest, announced The UK Enterprise Fund to bring additional funding and support to entrepreneurs across the UK, with specific initiatives and programmes for female-led businesses and promoting greater diversity in management teams in general. BGF also joined the Diversity Project, an initiative calling for a more inclusive culture in the investment and asset management industry.
ESG takes center stage
In 2020, BGF became a signatory to the Principles of Responsible Investment (PRI), an initiative backed by the United Nations that encourages investors to incorporate environmental, social and governance (ESG) factors into their decision-making. BGF has taken measures to embed environmental, social and governance factors in its investment process. BGF also proactively supported businesses and sectors that are helping to solve society-wide challenges such as climate change. BGF has a team of 12 investors across its ‘Green Growth’ network with existing investments including Aceleron, whose technology allows batteries to be reused and recycled, rather than replaced. Across the portfolio, BGF has invested in businesses that develop hydrogen fuel cells, maintain wind turbines, recycle organic waste, and apply energy efficient practices in building and construction. With over £225m already committed to Green Growth, a strong and embedded regional focus, and a mission led business model with support and active governance at the heart of it, BGF is leading the way for investors to support these critical initiatives.
The Talent Network breaks records
BGF’s Talent Network passed an important milestone in 2020, having surpassed 6,000 members and placed 300 board members within its portfolio. The seven-strong Talent Network team at BGF takes a patient approach to helping companies find talent. The team also launched an Expertise-On-Demand service offering access to expert guidance on a short-term or consultancy basis. Experts cover a range of specialisms, including finance, digital marketing, cashflow management, IT and more, helping portfolio businesses to maximise their growth.
Looking ahead:
More still to do
In 2021, BGF is looking to surpass the investments made in 2020 by backing even more high-potential, high-growth companies. PwC research, released in 2020, determined there are more than 21,400 small and mid-sized companies in the UK alone that are potential targets for BGF’s investment provision. These are businesses that have outgrown the kind of early-stage funding available for start-ups, but have not yet achieved the scale of large, listed businesses. They also include the thousands of companies who may be over-indebted as a result of the pandemic. BGF is committed to supporting scaling businesses and believes that equity funding must be part of the solution to meeting these companies’ needs.
Championing innovation
BGF is the one of the most active investors in the life sciences sector. To date, it has backed more than 30 life science businesses, with its current portfolio spanning diagnostics, medtech and digital health, as well as services, software and tools supporting therapeutic development. Life sciences and the focus on R&D in areas such as pathology, biotechnology and drug discovery, has come front and centre during the pandemic. The industry has proven it plays a major role in the delivery of healthcare, and in particular driving forward innovation that has defined the UK’s response to Covid-19. That experience has generated significant activity in the healthcare sector and in life sciences, in which BGF is now a leading sector specialist, and will continue to be a primary focus in 2021.
Green Growth
BGF aims to significantly boost its investments in the field of ‘green growth’, from fuel cells to energy-efficient buildings. It has already backed more than 20 companies in this arena and is now establishing a high-powered Advisory Board to ensure the key issues and steps to deliver net zero are core to BGF’s investment strategy. There is set to be a huge amount of investment and innovation in this area and BGF is committed to making a meaningful contribution.
Looking to a global future
BGF is committed to supporting the global ambitions of its portfolio. This is particularly important in the international environment the UK now operates in, creating change and new opportunities for all businesses to forge trading partnerships and markets across the world. BGF will be deploying the skills and know-how to think globally, by ensuring access to talent and trade, building international relationships and sharing knowledge. BGF has already played a key role in helping to establish similar investment models in Canada and Australia, as well as exploring other potential opportunities to be established in the future.
Paris, May 26th 2021 – Zaion’s ambition is to become the European leader in customer relationship solutions enhanced by Artificial Intelligence. This Series A round of funding led by Fortino Capital and Truffle Capital aims to accelerate its internationalization and the development of its solutions.
Zaion tripled recurrent revenue in 2020 in addition to a new round of funding.
Founded in Paris in 2017 by Franz Fodéré, Zaion is pleased to announce a €9 million Series A funding round from Fortino Capital, Truffle Capital, Pro BTP Innovation and Bpifrance. La France Mutualiste, a reference investor for Zaion, is also participating in the deal.
Zaion is helping companies improve their customer experience through Artificial Intelligence. Its solutions aim to:
Its consistent development has enabled it to become the leading player in the French Callbot solutions market with:
Further development of AI solutions and acceleration in Europe
Having already established a presence in Germany and Belgium, this new round of funding aims to step up Zaion’s internationalization in Europe while consolidating its leading position in France.
Through its R&D center aptly called the Zaion Lab, Zaion will continue to develop its Artificial Intelligence technologies through:
The company has 80 employees and is planning to double its workforce by the end of next year.
Franz Fodéré, founder and CEO of Zaion: “After a recurrent revenue growth of more than 200% in 2020, we want to reach a new milestone and make Zaion the undisputed leader in conversational Artificial Intelligence in Europe. Voice is the most natural channel to engage with a company or public administration. Based on this premise, our ambition is to create the customer relationship of the future through AI based on a seamless, engaging, meaningful and effective customer experience. For this new stage I am delighted to bring on board investors with a culture specific to Northern Europe and capable of supporting us in long-term international development.”
Filip Van Innis, Investment Director at Fortino Capital: “Zaion addresses the global conversational AI market that will reach €102 billion by 2026. We believe that with its proven customer relationship experience and AI technology expertise, Zaion will transform the customer experience and significantly improve user satisfaction.”
Bernard-Louis Roques, CEO & co-founder of Truffle Capital: “The combination of highly specialized skills in automated language processing technologies (like understanding, modeling, semantic and sentiment analysis, and retrieval) as well as an in-depth knowledge of how call centers work make Zaion the most innovative player in its market. The company’s automated language solution is a real success with insurance companies, a field where it is already a leader. The management and the team bring together exceptional talents and know-how. Through our Truffle ecosystem, we intend to contribute to Zaion’s expansion in France and Europe.”
Dan Miller, Lead Analyst and Founder, Opus Research, Inc.: “The investment community recognizes that enterprises are investing in solution providers that make it easy to add Conversational AI into a growing number of customer care activities.”
About Fortino Capital Partners
Fortino Capital Partners is a Benelux-focused enterprise software investor with a pan European reach. Fortino Capital invests in both Venture Capital and Growth private equity assets. With offices in Antwerp and Amsterdam, Fortino Capital’s investment portfolio includes Reaqta, Oqton, Teamleader, Insided, MobileXpense, Efficy CRM, Sigma Conso and iObeya among others.
More information at www.fortinocapital.com
__
About Truffle Capital
Truffle Capital is an independent European venture capital firm founded in 2001 specializing in life sciences such as Biotech and Medtech, and disruptive technologies in the IT sector such as Fintech and Insurtech. Its mission is to support the creation and development of young innovative companies with the potential to become the leaders of tomorrow. Chaired by Patrick Kron, alongside co-founders and Managing Directors Dr Philippe Pouletty and Bernard-Louis Roques, Truffle Capital has €700 million in assets. Since its establishment, it has raised more than €1 billion and has supported more than 75 companies in the digital technology and life sciences sectors. At the end of 2017, Truffle Capital successfully completed the first closings of its 2 new institutional funds, the Truffle Financial Innovation Fund and the Truffle BioMedTech Fund, as well as the closing of a fund dedicated to pension reserves.
More information at www.truffle.com
__
About La France Mutualiste
La France Mutualiste group offers a complete range of insurance and savings products to individuals. This includes retirement savings (including those of veterans), as well as automotive and home related property insurance, and personal insurance related to healthcare, loans, and providence. These products are distributed through its subsidiary Média Courtage.
The group has 290,000 registered members, 346,000 contracts in its portfolio, 500 employees, 270 volunteers, 60 branches, and assets of €10.2 billion, 16% of which is in real estate. La France Mutualiste was formed in 1891 with the aim of pooling its members’ savings and upholding the human and social values of solidarity and commitment with community spirit. The company is therefore particularly motivated to help the most vulnerable people either through its social and mutual aid fund or through sponsorship initiatives.
More information at www.la-france-mutualiste.fr
___
About PRO BTP INNOVATION PRO BTP INNOVATION is a direct investment structure founded in 2018 dedicated to financing the growth of innovative companies namely operating in the Insurtech and healthcare fields to further their transformation or digitalization. This company acts on behalf of the entire PRO BTP Group.
Whether it be healthcare, providence, insurance, savings, retirement, or vacations, PRO BTP Group is the leading professional social protection group serving companies, craftsmen, employees, apprentices, and retirees in the construction industry. PRO BTP is a company of people and not of capital. Surpluses benefit its members, particularly in the form of improved guarantees and solidarity measures. The Group has no shareholders to remunerate.
Created to manage the supplementary social protection of the construction industry, the PRO BTP group is managed by representatives of the employers and employees of the profession. Today it is the 8th largest French health and provident insurance company with 5,270 employees. The group is a committed and responsible player that finances large-scale social policy and invests in the energetic transition and technological innovation through projects related to risk prevention, health, construction, and insurance.
PRO BTP is strengthening its solidarity commitment to construction professionals mainly through its Corporate Social Responsibility (CSR) policy. The Group’s ambition is to protect and serve the building and construction industry by foreseeing tomorrow’s needs.
More information at www.probtp.com
Press Relations: Sophie BALSARIN s.balsarin@probtp.com – +33 (0)1 41 79 72 61.
___
About Zaion Founded in Paris in 2017 by Franz Fodéré, Zaion is the European expert in augmented customer relationship solutions. Zaion puts voice at the heart of rich and emotional exchanges through a unique and innovative technology of Callbots, Chatbots, Voicebots and Messagingbots.
More information at www.zaion.ai
Life science research distributor Nordic BioSite Group brings in new majority owner Adelis Equity Partners in order to further accelerate its growth and geographic expansion with the goal of becoming an even stronger partner to its suppliers and customers
Nordic BioSite Group (NBG) is a leading European supplier of research and diagnostics products, with a particularly strong position within antibodies and other research reagents. Through the combination of Nordic Biosite AB in the Nordics, Sanbio BV in Benelux and Biomol GmbH in Germany, Tellacq Partners have together with the founders and management team built a solid presence in Northern Europe. Now Adelis is brought in as a partner, to help further accelerate growth and geographical expansion.
Over the last twenty years, NBG has built a solid presence in Northern Europe, connecting researchers with the world’s leading life science products for research use. The Group’s highly skilled employees, many of whom are PhDs within the field, advise thousands of researchers across Europe on which products to use to optimise their research. A growing pan-European presence helps international suppliers cut through the complexity of serving the fragmented and heterogenous European market.
“We see substantial opportunities for expansion and know that Adelis has extensive experience in growing European life science companies,” says CEO Wilco van Hamond. “We see strong potential for creating a pan-European life science research distributor, serving suppliers across Europe”, adds Magnus Lundberg, partner at Tellacq Partners.
“NBG is a leader in each of the regions in which it operates. Life science research will continue to see strong underlying growth in a post-pandemic world – with a wealth of exciting new products continuously being launched. Connecting suppliers to the fragmented European research and diagnostics market enables high quality research output. We are impressed by NBG’s management team and skilled employees and recognise that the company’s services are of great value to its suppliers and customers. We look forward to supporting NBG build a truly pan-European distribution platform”, say Rasmus Molander and Lene Stern from Adelis.
The parties have chosen not to disclose the purchase price.
Nordic BioSite: Wilco van Hamond, wilco.vanhamond@nordicbiosite.com, +31 653 94 19 04
Adelis Equity Partners: Rasmus Molander, rasmus.molander@adelisequity.com, +46 70-823 74 33
Adelis Equity Partners: Lene Stern, lene.stern@adelisequity.com, +46 70-281 34 24
Tellacq: Magnus Lundberg, info@tellacqpartners.com
Nordic BioSite has been a leading supplier of products for research and diagnostics for over 20 years. Together with Sanbio (Benelux) and BioMol (Germany) the Group has a highly skilled employee base across Europe who provide products, expertise and support to thousands of researchers. For further information please visit https://www.nordicbiosite.com
Adelis is a growth partner for well-positioned, Nordic companies. Adelis partners with management and/or owners to build businesses in growth segments and with strong market positions. Since raising its first fund in 2013, Adelis has been one of the most active investors in the Nordic middle-market, making 25 platform investments and more than 100 add-on acquisitions. Adelis today manages approximately €1 billion in capital. For more information please visit www.adelisequity.com.
LONDON, May 28, 2021 – Planet, a global integrated payments leader, will accelerate its growth strategy with a new investment from Advent International (“Advent”), one of the largest and most experienced global private equity investors. Advent has agreed to co-ownership with Eurazeo, a leading global investment company.
Planet provides integrated digital payment services on a unique single platform that offers acquiring, processing, digital wallets, VAT refund and currency conversion services to merchants in the Retail, Hospitality, Food & Beverage, Parking and Financial sectors. By partnering with Planet, merchants enhance their customers’ omnichannel experience, while generating additional revenue from value added payments services.
Advent and Eurazeo share a common vision for the business – to accelerate Planet’s existing strategy, deliver new innovations to customers faster, and further develop Planet’s position as a global leader in integrated payments.
Marc Frappier, Eurazeo Managing Partner and Board member, said: “Six years ago, we saw the potential in Planet to become a world-class payments business delivering innovative products and digital services across multiple vertical sectors. Since then, we have been delighted with Planet’s strategic direction and growth trajectory.”
Jeff Paduch, Managing Partner of Advent, said: “In today’s vertical payments landscape, it is rare to find a business with such a unique proposition and diversified product suite. Together with Eurazeo, we are excited to help Planet realise its full potential and accelerate its ambitious growth strategy.”
Patrick Waldron, CEO of Planet, said: “This new investment will accelerate the rate at which we develop and roll-out new innovations. It will ensure we are able to offer our customers and partners a world-leading range of payments solutions in keeping with consumers’ ever changing needs and expectations.”
Advent has an unparalleled track record in accelerating the growth of businesses across the payments and software industries. Worldwide since 2008, Advent has invested ~$4 billion in eight payments companies and has supported over 40 add-on acquisitions made by these companies.
About PlanetPlanet is a provider of integrated digital payment services on a unique single platform that offers acquiring, processing, digital wallets, VAT refund and currency conversion services. Planet helps businesses meet the needs of their customers by simplifying complex payments, helping people Find out more here: www.PlanetPayment.com |
About Advent InternationalFounded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 375 private equity investments across 42 countries, and as of December 31, 2020, had €62 billion ($72 billion)in assets under management. With 15 offices in 12 countries, Advent has established a globally integrated team of over 240 private equity investment For more information, visit |
About EurazeoEurazeo is a leading global investment group, with a diversified portfolio of €21.8 billion in Assets Under Management, including €15.0 billion from third parties, invested in 450 companies. With its considerable private equity, private debt and real assets expertise, Eurazeo accompanies companies of all sizes, supporting their development through the commitment of its nearly 300 professionals and by offering deep sector expertise, a gateway to global markets, and a responsible and stable foothold for transformational growth. Its solid institutional and family shareholder base, robust financial structure free of structural debt, and flexible investment horizon enable Eurazeo to support its Eurazeo has offices in Paris, New York, Sao Paulo, Seoul, Shanghai, Singapore, London, Luxembourg, Frankfurt, Berlin and Madrid. Eurazeo is listed on Euronext Paris. ISIN: FR0000121121 – Bloomberg: RF FP – Reuters: EURA.PA |
Nordic Capital1 has sold its remaining shares in Nordnet, a leading pan-Nordic digital savings and investments platform. Under Nordic Capital’s ownership, and in close partnership with the founding Öhman Group, Nordnet underwent significant transformative change and now offers a best-in-class customer experience in the digital savings industry with sustainable growth potential.
In November 2020, Nordnet was successfully listed on Nasdaq Stockholm at an equity value of approximately SEK 24 bn. The successful listing and subsequent strong share price performance reflect the strength of Nordnet’s business and its fast growth; the result of significant improvements implemented during Nordic Capital’s ownership. On 26 May 2021, Nordic Capital initiated an accelerated book building process to sell its remaining 9.2% shareholding to a group of long-term institutional investors. Following this sale, Nordic Capital no longer owns any shares in Nordnet, while the founding Öhman Group remains the largest shareholder. The equity value of Nordnet on 26 May 2021 was SEK 38 bn.
In 2017, Nordnet was taken private by Nordic Capital and the Öhman Group, who shared the ambition to create a best-in-class customer experience in the digital savings industry. As a result of significant platform investments, enhanced user experiences and product innovation, Nordnet considerably increased its customer activity and engagement, expanded its share of the Nordic market and accelerated its growth trajectory. In addition, Nordnet advanced its sustainability agenda to further promote sustainable savings and democratise savings and investments in society. Nordnet also invested in a strengthened organisation, with its experienced management team focused on scaling the platform and delivering strong profitable growth.
In the first quarter of 2021, Nordnet had a record-breaking inflow of new savers with 39% annual customer growth and all-time high net savings capital of SEK 648 billion. Nordnet more than doubled the customer base and nearly tripled net savings capital during Nordic Capital’s ownership.
Christian Frick, Partner at Nordic Capital Advisors, comments:
“Nordnet’s pan-Nordic digital savings and investments platform with best-in-class customer experience enables private savers to grow their savings every day. The Company has experienced a journey of growth and sustainable transformation as a result of significant platform investments and enhanced product innovation. We are immensely proud of the Nordnet team and would like to thank them for their dedication and exceptional work. During the joint ownership of the Öhman Group and Nordic Capital, Nordnet was truly transformed, now standing stronger than ever with an exciting growth journey ahead.”
Lars-Åke Norling, CEO of Nordnet, comments:
“Under the private ownership of Nordic Capital and the Öhman Group, Nordnet has grown to become a driving force in the digital savings industry. Nordic Capital has supported us during this journey in a very professional way, with full focus on enhancing the customer experience. I want to thank Nordic Capital for their contribution to Nordnet’s development, and at the same time thank our close to 1.5 million customers who trust us with their savings every day. Our promise to the Nordic savers remains the same – to build the best platform for savings and investments.”
Tom Dinkelspiel, Chairman of the Board of Nordnet representing the Öhman Group, comments:
“I am incredibly proud of Nordnet’s growth journey that started almost 25 years ago with a promise to democratise savings and investments. In true partnership with Nordic Capital, we made significant investments into the platform and product innovation which put Nordnet in a unique position to offer a leading customer experience. Representing the largest shareholder, we want to thank both the Nordnet and Nordic Capital teams for great efforts in making this happen and are looking forward to continuing this exciting journey ahead.”
Financial Services is one of Nordic Capital’s focus sectors where it has extensive experience, a strong and active sector network and a dedicated team with local presence across Northern Europe. As one of Europe’s leading financial services investors, Nordic Capital has invested EUR 2.5 bn in 11 financial services companies since 2004. It has achieved repeatable success and developed thriving companies as evidenced by the performance of financial services companies such as Resurs Bank, Nordax Bank, Bambora and Trustly as well as the most recent investment in Max Matthiessen and the signed agreement on the merger of Advisa and Sambla.
Press contacts
Nordic Capital
Katarina Janerud, Communications Manager
Nordic Capital Advisors
Tel: +46 8 440 50 50
e-mail: katarina.janerud@nordiccapital.com
About Nordic Capital
Nordic Capital is a leading private equity investor with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a long history. Focus sectors are Healthcare, Technology & Payments, Financial Services, and selectively, Industrial & Business Services. Key regions are Europe and globally for Healthcare and Technology & Payments investments. Since inception in 1989, Nordic Capital has invested more than EUR 17 billion in close to 120 investments. The most recent fund is Nordic Capital Fund X with EUR 6.1 billion in committed capital, principally provided by international institutional investors such as pension funds. Nordic Capital Advisors have local offices in Sweden, Denmark, Finland, Norway, Germany, the UK and the US. For further information about Nordic Capital, please visit www.nordiccapital.com
[1] The shares are owned and were offered by Cidron Danube S.à r.l. (“Cidron”), a company indirectly owned by Nordic Capital. References to “Nordic Capital” in this press release in relation to the transaction contemplated herein refers to Nordic Capital VIII Alpha, L.P. and Nordic Capital VIII Beta, L.P. (acting through their general partner Nordic Capital VIII Limited), or, as required by the context, Cidron as a selling shareholder. “Nordic Capital” may also, depending on the context, refer to any, or all, Nordic Capital branded funds and vehicles and associated entities. The general partners of Nordic Capital’s funds and vehicles are advised by several non-discretionary sub-advisory entities, any or all of which are referred to as “Nordic Capital Advisors”.
Gross proceeds expected to include $60 million from a committed PIPE and up to $175 million held in trust
• Anticipated cash resources will fund eFFECTOR’s pipeline advancement through multiple clinical milestones
• Merger expected to be completed in third quarter of 2021; combined company expected to be listed on Nasdaq under the ticker “EFTR”
• Webcast to discuss the proposed transaction scheduled for Thursday, May 27th at 9:00 am ET
SAN DIEGO, May 27, 2021 – eFFECTOR Therapeutics, Inc. (eFFECTOR), a biopharmaceutical company focused on pioneering the development of selective translation regulation inhibitors (STRIs) for the treatment of cancer, and Locust Walk Acquisition Corp. (NASDAQ: LWAC), a blank-check company formed for the purpose of acquiring or merging with one or more businesses, today announced they have entered into a definitive merger agreement. Upon closing of the transaction, anticipated to occur in the third quarter of 2021, the combined company will be named eFFECTOR Therapeutics, Inc. and will be led by Steve Worland, Ph.D., president and CEO. The combined company’s common stock is expected to be listed on the Nasdaq Capital Market under the ticker symbol “EFTR”.
“This milestone is the beginning of a significant new chapter in eFFECTOR’s history, as we build on our strong scientific foundation as leaders in the development of selective translation regulator inhibitors as a new class of therapies for cancer,” said Dr. Worland. “We’re entering into this transaction to accelerate eFFECTOR’s growth with the goal of delivering a new class of medicines to help drive improved health outcomes for people with cancer. We are excited to be selected by the management and board of LWAC, whose members have vast experience as investors and operating executives in the biotechnology industry.”
“After evaluating more than 90 biotech companies, eFFECTOR emerged as the best choice for our business combination,” stated Chris Ehrlich, CEO and director of LWAC. “eFFECTOR is at the cutting-edge of targeting translation regulation, which has the potential to simultaneously address multiple drivers of cancer. We are confident that the highly experienced management team with a track record of pipeline advancement and business accomplishments are prepared to lead eFFECTOR as a publicly listed company. This transaction positions eFFECTOR to reach important value inflection points for our impressive list of stakeholders.”
The transaction includes up to $175 million in trust at LWAC (less any redemptions by existing LWAC stockholders) and a concurrent, fully committed $60 million PIPE financing of common stock issued at $10.00 per share from new and existing leading healthcare investors including founding Series A investors Abingworth, SR One, The Column Group and U.S. Venture Partners, as well as Altitude Life Science Ventures, Sectoral Asset Management, Pfizer Ventures, Alexandria Venture Investments, BioMed Ventures and Osage University Partners.
Proceeds from the transaction are expected to provide eFFECTOR with the capital to further develop its pipeline, advancing it through multiple clinical milestones, including the following:
Key Transaction Terms
Upon the closing of the business combination, and assuming no redemptions of shares of LWAC by its public stockholders, eFFECTOR would be expected to have cash resources of approximately $210 million (less any redemptions), and a total enterprise valuation of $419 million.
The boards of directors of both eFFECTOR and LWAC have unanimously approved the proposed transaction, which is expected to be completed in the third quarter of 2021. The closing of the transaction is subject to approval of LWAC shareholders and the satisfaction or waiver of certain other customary closing conditions.
Additional information about the transaction will be provided in a Current Report on Form 8-K to be filed by LWAC with the Securities and Exchange Commission (SEC) and will be available on the SEC’s website at www.sec.gov. In addition, LWAC intends to file a registration statement on Form S-4 with the SEC, which will include a proxy statement/prospectus, and will file other documents regarding the proposed transaction with the SEC.
Advisors
Credit Suisse and Stifel are acting as lead PIPE placement agents, and Credit Suisse is also acting as capital markets advisor to eFFECTOR. Locust Walk Securities is also acting as PIPE placement agent. Latham & Watkins LLP is acting as legal counsel to eFFECTOR. Cantor Fitzgerald is acting as the lead capital markets advisor to LWAC. JMP Securities and Mizuho Securities are also acting as capital markets advisors to LWAC. Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C. is serving as legal counsel to LWAC.
Investor Webcast
The management teams of eFFECTOR and LWAC will host a webcast today, Thursday, May 27 at 9:00 a.m. ET to provide a brief overview of eFFECTOR and the proposed transaction. The webcast can be accessed here: http://public.viavid.com/index.php?id=145087
In addition, the link will be available on eFFECTOR’s website at www.effector.com and LWAC’s website at www.locustwalkacquisitioncorp.com.
About eFFECTOR
eFFECTOR is a clinical stage biopharmaceutical company focused on pioneering the development of a new class of oncology drugs referred to as selective translation regulator inhibitors (STRIs). eFFECTOR’s STRI product candidates target the eIF4F complex and its activating kinase, mitogen-activated protein kinase 1/2 (MNK 1/2). The eIF4F complex is a central node where two of the most frequently mutated signaling pathways in cancer, the PI3K-AKT and RAS-MEK pathways, converge to activate the translation of select messenger RNA into proteins that are frequent culprits in key disease driving processes. Each of eFFECTOR’s product candidates is designed to act on a single protein that drives the expression of multiple functionally related proteins, including oncoproteins and immunosuppressive proteins in T cells, that together control tumor growth, survival and immune evasion. eFFECTOR’s lead product candidate, tomivosertib, is a MNK 1/2 inhibitor. KICKSTART, a randomized, double-blind, placebo controlled Phase 2b trial of tomivorsertib in NSCLC in combination with pembrolizumab is currently open for enrollment. Zotatifin, eFFECTOR’s inhibitor of eIF4A, is currently in the dose-escalation portion of a Phase 1/2 trial, with Phase 2a expansion cohorts expected to initiate in the second half of 2021. eFFECTOR has a global collaboration with Pfizer to develop inhibitors of a third target, eIF4E. eFFECTOR plans to evaluate zotatifin as a potential host-directed anti-viral therapy in patients with mild to moderate COVID in collaboration with University of California, San Francisco, under a $5 million grant sponsored by the Defense Advanced Research Projects Agency.
About Locust Walk Acquisition Corp.
Locust Walk Acquisition Corp. (NASDAQ: LWAC) is a blank-check company formed for the purpose of entering a merger, share exchange, asset acquisition, stock purchase, recapitalization, reorganization, or other similar business combination with one or more businesses or entities.
Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the federal securities laws with respect to the proposed transaction between Locust Walk Acquisition Corp. and eFFECTOR Therapeutics, Inc. All statements other than statements of historical facts contained in this press release, including statements regarding LWAC or eFFECTOR’s future results of operations and financial position, the amount of cash expected to be available to eFFECTOR after the closing and giving effect to any redemptions by LWAC stockholders, eFFECTOR’s business strategy, prospective products, product approvals, research and development costs, timing and likelihood of success, plans and objectives of management for future operations, future results of current and anticipated products and expected use of proceeds, are forward-looking statements. These forward-looking statements generally are identified by the words “believe,” “project,” “expect,” “anticipate,” “estimate,” “intend,” “strategy,” “future,” “opportunity,” “plan,” “may,” “should,” “will,” “would,” “will be,” “will continue,” “will likely result,” and similar expressions. These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including, but not limited to, the following risks relating to the proposed transaction: the risk that the transaction may not be completed in a timely manner or at all, which may adversely affect the price of LWAC’s securities; the failure to satisfy the conditions to closing the transaction, including the approval by the stockholders of LWAC and the receipt of certain governmental and regulatory approvals; the risk that some or all of LWAC’s stockholders may redeem their shares at the closing of the transaction; the effect of the announcement or pendency of the transaction on the eFFECTOR’s business relationships and business generally; the outcome of any legal proceedings that may be instituted related to the transaction; the ability to realize the anticipated benefits of the transaction; eFFECTOR may use its capital resources sooner than it expects; and the risks associated with eFFECTOR’s business set forth in the Appendix to the investor presentation filed as an exhibit to the Current Report on Form 8-K filed by LWAC discussed above. Moreover, eFFECTOR operates in a very competitive and rapidly changing environment. Because forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified and some of which are beyond LWAC’s and eFFECTOR’s control, you should not rely on these forward-looking statements as predictions of future events. The foregoing list of factors is not exclusive, and you should carefully consider the foregoing factors and the other risks and uncertainties described in the “Risk Factors” section of LWAC’s Annual Report on Form 10-K and other documents filed by LWAC from time to time with the SEC. These filings identify and address other important risks and uncertainties that could cause actual events and results to differ materially from those contained in the forward-looking statements. Forward-looking statements speak only as of the date they are made. Readers are cautioned not to put undue reliance on forward-looking statements, and except as required by law. LWAC and eFFECTOR assume no obligation and do not intend to update or revise these forward-looking statements, whether as a result of new information, future events, or otherwise. Neither LWAC nor eFFECTOR gives any assurance that either LWAC or eFFECTOR or the combined company will achieve its expectations.
Important Information for Investors and Stockholders
This press release relates to a proposed transaction between LWAC and eFFECTOR. This document does not constitute an offer to sell or exchange, or the solicitation of an offer to buy or exchange, any securities, nor shall there be any sale of securities in any jurisdiction in which such offer, sale or exchange would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. LWAC intends to file a registration statement on Form S-4 with the SEC, which will include a document that serves as a prospectus and proxy statement of LWAC, referred to as a proxy statement/prospectus. A proxy statement/prospectus will be sent to all LWAC stockholders. LWAC also will file other documents regarding the proposed transaction with the SEC. Before making any voting decision, investors and security holders of LWAC are urged to read the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC in connection with the proposed transaction as they become available because they will contain important information about the proposed transaction.
Investors and security holders will be able to obtain free copies of the registration statement, the proxy statement/prospectus and all other relevant documents filed or that will be filed with the SEC by LWAC through the website maintained by the SEC at www.sec.gov. Alternatively, these documents, when available, can be obtained free of charge from LWAC upon written request to Locust Walk Acquisition Corp., c/o eFFECTOR, 11120 Roselle Street, Suite A, San Diego, CA 92121, Attn: Secretary, or by calling (858) 925-8215.
Participants in the Solicitation
LWAC and eFFECTOR and their respective directors and executive officers may be deemed to be participants in the solicitation of proxies from LWAC’s stockholders in connection with the proposed transaction. A list of the names of the directors and executive officers of LWAC and information regarding their interests in the business combination will be contained in the proxy statement/prospectus when available. You may obtain free copies of these documents as described in the preceding paragraph.
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities or a solicitation of any vote or approval, nor shall there be any sale of any securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of such other jurisdiction.
Contacts:
Investors:
Stephanie Carrington
Westwicke, an ICR Company
646-277-1282
Stephanie.Carrington@westwicke.com
Media:
Heidi Chokeir, Ph.D.
Canale Communications
619-203-5391
heidi.chokeir@canalecomm.com
Scotland-based raw, natural pet food company, Bella & Duke Ltd, has today announced a successful investment round of £7 million from a consortium of investors.
BGF has injected £5 million, with the balance provided by existing shareholders, including a further investment from Mobeus.
Bella & Duke was founded in 2016 by Mark Scott and Tony Ottley – two friends who agreed that existing mainstream pet food products did not give dogs and cats the best chance of enjoying long, healthy lives. Bella & Duke’s raw, natural pet food provides notable health benefits to pets, with over 92% of customers reporting an improvement in their dog within 8 weeks.
Bella & Duke has grown rapidly to post revenues north of £11m in its last financial year and delivers over 2m meals per month across Great Britain.
This new investment will accelerate marketing activity, increase factory capacity, and create further job opportunities at Bella & Duke’s headquarters located in Fife. Total employee numbers have also recently risen to almost 100, with further significant increases planned over the next few years as the business scales up.
Alongside the funding round, Peter Farquhar will join Bella & Duke as Chairman. Peter is the former Chairman of natural pet food brand, Forthglade.
Mark Scott, co-founder and CEO of Bella & Duke says: “Attracting this recent investment demonstrates the long-term potential for Bella & Duke and showcases the significant opportunity within the raw feeding category generally.
“The business has grown significantly in recent years due to the increasing consumer demand for natural, nutritionally beneficial pet food as well as the success of our subscription-based business model, that delivers frozen food from our factory in Fife directly to customers’ homes throughout Great Britain.
“This funding round will enable us to continue growing and we’re delighted to be working with our investors for the next phase of the journey.”
Graham Clarke, investor at BGF, says: “Providing consumers with high-quality raw pet food in a subscription-based model is proving a winning formula – and so we are delighted to be supporting Mark, Tony and the Bella & Duke team in their next phase of growth. We believe they are perfectly placed to deliver the new industry-standard of consumer pet wellness in Great Britain.”
Investment AB Latour (publ) has, through its subsidiary Produal Holdings, acquired HK Instruments Oy, based in Finland. Produal is part of Bemsiq AB, a group of innovative and fast-growing companies providing products in building automation and metering.
HK Instruments, with head office and manufacturing in Muurame, Finland, was founded in 1987 and offers advanced measuring devices for building automation. The company specializes in technologically advanced measuring devices for HVAC applications, including differential pressure transmitters, switches, meters for liquids, gas detection sensors, and more. Total revenues in 2020 amounted to EUR 8 m with 50 employees.
“HK Instruments is a high-quality company in terms of both people and products. We have known the company for many years and are very impressed by their accomplishment. We see great potential to continue developing the company together”, says Anselmi Immonen, CEO at Produal Oy.
“For us, Produal and Bemsiq are the perfect strategic long-term partners. Their extensive product portfolio and industry network combined with the wide distribution channel and global brand presence of HK Instruments give great opportunities for all companies. We are very keen to continue our journey together with them”, says Jukka Kalliomäki, CEO of HK Instruments.
As an effect of the acquisition the net debt (excl. IFRS 16) of the Latour Group is expected to increase compared to the net debt level at the end of March 2021, to around SEK 6.0 billion, all else equal.
The acquisition will be completed in June 2021.
Göteborg, May 27, 2021
INVESTMENT AB LATOUR (PUBL)
Johan Hjertonsson, CEO
For further information, please contact:
Mikael J Albrektsson, CEO Bemsiq AB, +46 733 23 3606
Anselmi Immonen, CEO Produal Oy, +358 509 11 80 68
Ida Saalman, Business Development Investment AB Latour, +46 727 22 8869
Bemsiq AB, with headquarters in Gothenburg, Sweden, has an annual turnover of SEK 725 m and employs about 270 persons. Bemsiq consists of a group of innovative and fast-growing companies providing products in building automation and metering and is a subsidiary of Latour Industries, which is one of five wholly-owned business areas within the Latour Group.
Investment AB Latour is a mixed investment company consisting primarily of a wholly-owned industrial operations and an investment portfolio of listed holdings in which Latour is the principal owner or one of the principal owners. The investment portfolio consists of nine substantial holdings with a market value of about SEK 79 billion. The wholly-owned industrial operations has an annual turnover of SEK 15 billion.
Additions bolster fundraising and people expertise
INDIANAPOLIS, May 27, 2021 /PRNewswire/ — Bloomerang, the donor management software provider to thousands of nonprofits, today announced the appointment of three new members to its board of directors.
Natalye Paquin and Pamela Perry have joined as Board Members. Kishshana Palmer, CFRE has joined as a Board Advisor.
“We are so excited to add voices and perspectives to the board that represent the two most valuable stakeholders to our business: professional fundraisers and our employees,” said Ross Hendrickson, CEO of Bloomerang. “Natalye and Kishshana were called to serve due to their extensive nonprofit backgrounds, and Pam to help make us a best place to work.”
Natalye Paquin currently serves as the President and Chief Executive Officer of the Points of Light Foundation, the largest nonprofit in the world dedicated to volunteerism and community service. Founded in 1990 by President George H.W. Bush as an independent, nonpartisan, nonprofit organization to encourage and empower the spirit of service, Points of Light works with affiliate organizations throughout the United States and in more than 30 countries around the world. Natalye has more than 10 years experience as a Corporate Board Director of two regional banks, and has served in senior executive roles in the public sector, including as an attorney and legal advisor.
Pamela Perry currently serves as CEO of HR Equity Inc., a strategic human resources organization focused on building value for private and venture capital-backed tech companies. An HR veteran, she previously served as Chief People Officer for automotiveMastermind Inc. and Kareo.
Kishshana Palmer, CFRE is an international speaker, trainer, and coach with a 20+ year background in fundraising, marketing, and talent management who helps leaders create high performing teams. She is the founder of The Rooted Collaborative — a global community focused on the growth and development of women leaders of color in the social sector. She’s the host of the podcast “Let’s Take This Offline”, an adjunct professor at Baruch College, a Certified Fundraising Executive (CFRE), a BoardSource Certified Governance Trainer (CGT), A Gallup Certified Strengths Coach and an AFP Master Trainer.
“By adding Natalye, Pam and Kishshana, Bloomerang now has a board that more accurately represents our customers, as well as a board that will help us better serve our customers so that they can make an even bigger impact on the world,” said Jay Love, Co-Founder of Bloomerang.
The three new members join Larry Contrella, Principal at JMI Equity, David Greenberg, General Partner at JMI Equity, Vinny Prajka, Partner at JMI Equity, Jay Love, Co-Founder of Bloomerang, and current Bloomerang CEO Ross Hendrickson.
The announcement builds on a strong year of momentum for the company. Last January Bloomerang announced their acquisition of Kindful, a nonprofit software platform known for its best-in-class third party application integrations and online fundraising tools. With a combined customer base in the tens of thousands, both the Bloomerang and Kindful products maintain stellar customer satisfaction ratings on the leading peer review websites.
About Bloomerang
Indianapolis-based Bloomerang is a cloud-based donor management software tool designed to help nonprofits reach, engage and retain the advocates they depend on to achieve their vision for a better world. For more information about Bloomerang, visit: https://bloomerang.co
Elopak is the largest private company in Ferd’s portfolio. The company was founded in 1957, by, among others, Johan Andresen Sr. Since its inception, the company has become a leading global supplier of carton packaging and filling equipment for liquid food and products.
Elopak has now announced its intention to apply for a listing at the Oslo Stock Exchange. Ferd intends to remain an active and committed shareholder following the IPO and is committed to ensuring Elopak continues to play a major part in the global shift towards a low-carbon circular economy.
For further information, see Elopak’s press release and stock notice.
