Duke Capital Ltd has recently reinforced its commitment to New Path Fire & Security Ltd by injecting an additional £3 million. This strategic move aims to bolster New Path’s acquisition of Elite Entrance Systems Ltd, a renowned specialist in automatic door entrance systems.
Guernsey-based Duke Capital is known for providing hybrid capital solutions to small and medium-sized enterprises across Europe and North America. Its investee, New Path Fire & Security, operates as a buy-and-build platform within the fire and security sector, primarily servicing London and the South of England. The company’s subsidiaries have established strong reputations in their respective localities.
The acquisition of Elite Entrance Systems is set to enhance New Path’s service offerings, particularly in the security domain. Elite’s expertise in maintaining and installing automatic door systems will allow New Path to cater to a broader client base, including institutions such as schools, universities, and the NHS.
Neil Johnson, CEO of Duke Capital, expressed enthusiasm about the acquisition, stating that it provides an excellent opportunity to expand New Path’s capabilities and client reach. He also highlighted Duke’s increased equity stake in New Path, underscoring the strength of their ongoing partnership.
With this latest funding, Duke Capital’s total investment in New Path amounts to £14.3 million. The terms include a starting return of 13.5% and an annual revenue adjustment factor of up to 6% concerning royalty payments. Additionally, Duke’s ownership in New Path has risen from 15% to 20.9%.
To date, Duke has supported seven acquisitions by New Path, with the addition of Elite Entrance Systems further solidifying New Path’s operational presence in London and Southeast England.
Duke Capital Limited (LON:DUKE), formerly Duke Royalty Limited, is a Guernsey-based provider of hybrid capital solutions for small and medium-sized enterprises (SME) business owners in the United Kingdom, Europe and North America, combining the features of both equity and debt.
