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.”
Asset Adviser: EverEdge Global|
M&A Legal Adviser: Anderson Lloyd
|Funding||Bank Lender: Kiwibank|
|Transaction Metrics||Accord 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.