AURELIUS Newsletter December


AURELIUS Newsletter December

Dear Business Partners

We are pleased to share our December newsletter, updating you on the latest news from Aurelius. It goes without saying that 2020 has been a year like no other. However, we’re delighted that for Aurelius it has been another active year in which we’ve completed new corporate carve-out investments, seen the portfolio show resilience in challenging market conditions and continued the expansion of our UK team.

From all the team at Aurelius, I wish you season’s greetings, a restful festive period and all the best for 2021!

News and developments in the UK

The Aurelius team in the UK has had a very busy 2020. We have completed three significant corporate carve-out transactions. We also bolstered our investment capabilities in the UK by welcoming several new joiners.

Highlights from 2020 have included:

Acquisitions and portfolio developments

  • Completion of the corporate carve-out acquisition of Armstrong Ceiling Solutions from Knauf International was effective on 31 March 2020. Formerly part of Armstrong World Industries Inc, the acquired businesses consist of the Armstrong ceiling tiles and grids businesses in the UK and across key markets in Continental Europe. In recent weeks we were delighted to announce a re-brand of the business to Zentia » Read announcement 
  • The carve-out of a leading manufacturer of off-highway wheels and innovative engineering solutions provider GKN Wheels & Structures from GKN, completed in November 2020. GKN Wheels & Structures employs around 900 people globally with four manufacturing facilities in the UK, USA and Denmark, in addition to test centres in Italy and the USA. » Read announcement
  • The carve-out of market-leading commercial fleet management business Pullman Fleet Solutions from Wincanton plc. The acquisition complements existing Aurelius portfolio company Rivus Fleet Solutions, acquired from BT Group plc in 2019. » Read announcement

Corporate Carve Out Survey

We published the findings of our fifth annual Corporate Carve Out survey earlier this year. Many thanks to everyone who took part. Set against the backdrop of the Covid-19 pandemic, the findings showed that the most important factor for corporate sellers of non-core assets was a potential buyer’s ability to execute the transaction, a trend likely to continue through the economic recovery period. We published the findings in a short report which can be read here.

Team news

In April, we bolstered our UK investment team through three new hires. James Sharp joined as a Principal, bringing over 15 years of experience across multiple sectors as well as significant restructuring expertise, while Kayan Kanga and Prakash Rajani joined the firm as Investment Associates. » Read announcement

Other UK developments

Our alternative lender, Aurelius Finance Company, has shown continued strong momentum in 2020 providing debt solutions to a number of new clients including Amara Living » Read announcement

We have also been delighted to author and share a blog during 2020 to offer our perspectives on the economic, political, social and technological changes arising from the pandemic.

News and developments at Aurelius Group

Aurelius Group has performed strongly amidst the challenging market conditions across Europe, a testament to the Group’s sustainable management of its portfolio. Highlights from the Group’s financial results for the first nine months of 2020 include:

  • Aurelius Group retained a solid cash position and balance sheet of €417.5 million.
  • EBITDA of the combined Group increased to €301.5 million on the back of strong gains on bargain purchases and company sales above book value.
  • The Group’s operating EBITDA of €100.2 million is a testament to Aurelius’ management of its portfolio over the course of the pandemic. » Read announcement

Aurelius outlook for 2021

As this year draws to a close, we look forward with optimism to the new year. Matthias Täubl, CEO of Aurelius Equity Opportunities, recently commented that “AURELIUS has successfully managed the restructuring of companies in exceptional situations for many years. I am therefore highly confident that we will not only successfully master the COVID-19 crisis with the backing of our operational experience accumulated over many years and our financial stability, but also emerge stronger from the crisis as a result of attractive new acquisitions”.

Best wishes
Tristan Nagler 
Managing Director