Description

In 2006, Southern Capital acquired Novomatrix Pte Ltd ("Novomatrix") a market leader across product categories in the spectrally selective window film market; with research and development, brand development/management and marketing and distribution capabilities. The company owns the market leading brands V-Kool, IQue, Huper-Optik and Nanolux, and distributes its products exclusively through in excess of 1,100 distribution touch points across 30 countries.

Investment Thesis

Entrepreneurial management team with strong execution track record

Portfolio of well known brands with strong market positions in the mid to high end segments

Exclusive distribution channels through an established proprietary franchise system

Asset-light and scalable business model with strong growth potential

Beneficiary of global "green" movement

Creating Shareholder Value

Enhanced capital structure enabling a capital distribution equivalent to 18% of equity invested within the first year of the investment

Made strategic add-on acquisitions up and downstream in manufacturing and distribution to secure supply-chain security

Healthy revenue growth and resilient margins, which maintained even during the 2008-2009 financial crisis due to active management and strong cost control measures

In 2010, Novomatrix was sold to the largest film company in the world, CP Films for a gross IRR of 59%