Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

EverEdge Capital Acquires NZ’s Largest Precision Manufacturer

Apollo Precision Manufacturing Limited (Apollo), an investment vehicle managed by EverEdge Capital, has acquired Accord Precision Limited (Accord), NZ’s largest certified precision manufacturing and assembly business.

Accord provides end-to-end precision manufacturing and assembly - from R&D and consultative design through to complete assembly and distribution. The business was established 50 years ago and achieved close to NZD $30 million in sales for the year ending 31 March 2021. It has successfully transitioned from being a conventional machine shop to a full-solution provider for sophisticated OEM global customers, including F&P, John Deere, Assa Abloy and Kirby Morgan.

Accord also maintains a comprehensive portfolio of international accreditations and is one of the only manufacturers in New Zealand to hold both ISO and FDA certifications.

Apollo was established to facilitate the acquisition of Accord and is managed by EverEdge Capital. EverEdge Capital is the principal investment arm of EverEdge Global, a specialist adviser focussed on intangible asset strategy, valuation, and commercialisation. EverEdge Capital undertook the acquisition to facilitate the next phase of growth and development for Accord while enabling the retirement of Accord’s owner-managers. The transaction was executed by way of a 100% share purchase.

EverEdge Capital, Chief Investment Officer, Francis Milner stated, “Today, intangible assets are a key driver of value and growth within an organisation. However, these assets are typically absent, mispriced, or under-valued on balance sheets. This has created a market vacuum whereby this asset class is largely ignored by traditional investment funds and significant intangible asset value remains unrealised or unknown.

“Despite Accord being relatively asset heavy, we identified that some of its most valuable elements are intangible and off-balance sheet. By viewing the business through an investment lens focused on intangible value, we identified several assets that create a material competitive advantage relative to peer businesses. These assets help explain how the business has secured global Tier 1 OEM customers from ‘down-under’ while growing and remaining profitable.

“What is integral to Accord’s value proposition is the alignment of its key intangible assets including technical know-how, systems and controls, long-term customer relationships, skilled critical mass workforce, superior track record, and leading international accreditation. This enables Accord to deliver better customer experiences and results in profitable long-term relationships.

“As intangible assets have the potential to be scaled exponentially, we are looking forward to building on the strong foundations already in place and to leveraging these assets to continue to grow the business and serve our customer ever more effectively.”

Advisers

Intangible Asset Adviser: EverEdge Global
M&A Legal Adviser: Anderson Lloyd
FundingBank Lender: Kiwibank
Transaction MetricsAccord Revenue FY2021: NZD $28m

 

About Accord Precision

Accord was founded in 1970 by the Hanson and Stronge families and is now the largest precision manufacturing and assembly business in New Zealand. The business is recognised as a total solutions provider (TSP) with a skilled workforce, advanced production facilities, and proven track record supported by a range of Tier 1 OEM customers.

Accord has 70+ employees and operates two distinct, yet interdependent operating arms.

The first, the firm’s manufacturing arm and facility, focuses on the design and production of high-value and complex components, often in repetitive runs, which involve multiple engineering processes and subcomponents including metal injection mouldings, castings, forgings, laser cut parts. In many cases, these components are integral to the final product and represent years of R&D, invaluable intangible assets and deep technical know-how.

Accord’s second arm, an assembly & controlled work environment (CWE) facility, specialises in the complete assembly and distribution of components. Accord’s CWE facility also allows for ISO accredited ultrasonic oxygen cleaning and inspection – critical for customers whose products require an extremely high degree of care and preparation.

About EverEdge Capital

EverEdge Capital is the principal investment business and subsidiary of EverEdge Global. EverEdge Capital focuses on investment in mid-market companies where sustainable value can be generated through operational investment and proprietary intangible asset intelligence. EverEdge Capital is targeting investment toward companies in the upper / mid-market with revenues >$30m and which have an established operating model.

About Francis Milner

Francis Milner is a former M&A investment banker at Nomura and Sumitomo in London and a founding partner of VALTEGRA, a European focussed private equity fund. Francis has successfully completed more than NZD $12bn M&A transactions and principal investments primarily in the upper mid-market.

About EverEdge Global

EverEdge Global was founded in 2007 and is a global intangible asset specialist advisory firm. The business is headquartered in Singapore with offices in Australia and New Zealand. EverEdge Global assists senior management, boards, and investors to identify, evaluate, manage and monetize intangible assets. The firm has successfully completed more than 1,000 client engagements across North America, Europe, Asia, and Australasia. Clients include Fortune 100 corporations, institutional investors, governments, research institutes and ambitious start-ups.

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 




Barfoot and Thompson: Auckland Housing Prices Shrug Off Winter Concerns

Auckland house prices shrugged off the normal winter downturn, concerns about increasing prices and warnings of possible future interest rate rises in July.
“Mounting concerns about the prices being paid and possible future interest rate increases did nothing to dampen July trading... More>>



Stats NZ: Sharp Falls In Unemployment And Underutilisation

The seasonally adjusted unemployment and underutilisation rates fell to 4.0 and 10.5 percent, respectively, in the June 2021 quarter, Stats NZ said today. The unemployment rate continued to fall from its recent peak of 5.3 percent in the September 2020 quarter... More>>


FIRST Union: Do Shareholders Realise Marsden Point Conversion Could Cost More Than Half A Billion Dollars?

FIRST Union, the union representing workers at Refining NZ, are querying whether shareholders voting on Friday on whether to convert the Marsden Point refinery to an import-only terminal realise the conversion could cost $650-700 million dollars... More>>


Transport: July 2021 New Vehicle Registrations Boosted By EV Rebate Scheme
Motor Industry Association Chief Executive David Crawford says that July 2021 sales of new vehicles were boosted by the recently introduced rebate scheme. July 2021 registrations were 15,053 units compared to 12,263 units for July 2020... More>>



ASB: New Support Finder Tool Helps Connect Customers With Thousands In Government Support

ASB research alongside benefit numbers from the Ministry of Social Development shows an increased number of Kiwis are struggling financially, and many may not be aware they’re eligible for government support... More>>


Housing: New Home Consents Continue To Break Records

A record 44,299 new homes were consented in the year ended June 2021, Stats NZ said today. “The annual number of new homes consented rose again in the June 2021 year, the fourth consecutive month of rises,” construction statistics manager Michael Heslop said... More>>