Electra Partners, the private equity firm, has increased its stake in the livestock identification and tracking technology company, Allflex Corp. The firm invested a further $18 million into the company to support its recent acquisition of SCR, a dairy livestock monitoring company.
Allflex acquired SCR for $250 million late last year.
Electra first invested in Allflex in 1998 but sold its majority stake to BC Partners, another private equity firm, in 2013, because the company became too large for its portfolio. Electra also felt it could not contribute the capital needed for Allflex to make acquisitions and expand, according to a source close to the situation.
The sale generated a 15x return on Electra’s original investment producing an IRR of 28 percent.
But Electra bought back a 15 percent stake in Allflex in 2013, paying BC Partners $54 million to re-invest in the company. This latest investment increases Electra’s stake further, although the exact percentage increase was not disclosed.
“Allflex is the world’s leading manufacturer and distributor of visual, electronic and tissue-sampling animal identification devices selling more than 200 million tags each year in over 60 countries worldwide. Allflex employs over 1,300 employees around the world,” reads an Electra press release.
Allflex is majority owned by BC European Capital Fund IX, a buyout fund which closed on $6.68 billion in 2011.