Simon Orange’s Corpacq Embraces New Chapter with TDR Capital Acquisition
Simon Orange, the entrepreneur and co-owner of Sale Sharks rugby club, has finalized a transformative deal for his investment firm, Corpacq, marking a significant milestone in the company’s trajectory. The transaction, valued at over £1 billion ($1.2 billion), sees private equity firm TDR Capital acquire a majority stake in Corpacq, while Orange and his management team retain a substantial ownership position and continue to lead the company’s operations. This strategic partnership positions Corpacq for accelerated growth, leveraging TDR Capital’s extensive resources and expertise while preserving the core values and vision that have driven Corpacq’s success.
Corpacq, founded by Orange in 2006, has carved a niche in the UK investment landscape by focusing on small to medium-sized enterprises (SMEs) within the industrial products and services sector. The firm’s portfolio currently comprises 43 companies, demonstrating a commitment to building a diverse and robust collection of businesses. Corpacq’s financial performance underscores its effectiveness, with £697 million in revenue and £119 million in adjusted EBITDA reported for the fiscal year ending in 2023. This consistent growth trajectory, coupled with a clear strategic focus, attracted the attention of TDR Capital, a firm renowned for its ability to identify and nurture high-potential businesses.
The acquisition represents a significant endorsement of Corpacq’s business model and future prospects. TDR Capital, with a proven track record of successful investments, recognizes Corpacq’s potential to further expand its portfolio and create significant value. This partnership will provide Corpacq with access to TDR’s extensive network, financial resources, and operational expertise, empowering the company to pursue new investment opportunities and enhance the performance of its existing holdings. Moreover, the alignment of values and long-term vision between the two firms ensures a smooth transition and a collaborative approach to future growth.
While Orange’s business acumen is evident in Corpacq’s success, he is also known for his co-ownership of Sale Sharks, a Premiership rugby club, and his familial connection to Jason Orange, the former member of the iconic pop group Take That. These diverse interests highlight Orange’s entrepreneurial spirit and engagement in various sectors. The acquisition allows Orange to continue his leadership role at Corpacq while potentially exploring new avenues for growth and diversification within the TDR Capital ecosystem.
The journey to this acquisition involved a previous attempt by Corpacq to go public in New York through a merger with a special purpose acquisition company (SPAC). This plan, announced in August 2023 with a valuation of £1.6 billion, was ultimately abandoned a year later due to unfavorable market conditions. However, the pursuit of a public listing underscores Corpacq’s ambition and its recognition of the benefits of accessing broader capital markets. The TDR Capital acquisition provides an alternative path to achieving similar strategic objectives, offering a more stable and supportive environment for continued growth.
TDR Capital’s investment philosophy resonates with Corpacq’s approach to building value over the long term. TDR describes Corpacq as a "highly successful compounder" of SMEs, recognizing the firm’s ability to identify undervalued businesses and transform them into thriving enterprises. This shared vision for creating sustainable growth through operational improvements and strategic acquisitions lays the foundation for a productive partnership. TDR’s commitment to supporting Corpacq’s owner-friendly business combination strategy further reinforces the alignment of their approaches. This strategy emphasizes collaboration with existing management teams, fostering a culture of entrepreneurship and innovation within the portfolio companies.
The acquisition of Corpacq adds to TDR Capital’s impressive portfolio of 27 companies, further solidifying its position as a leading private equity firm. With over $15.6 billion in assets under management, TDR has a history of successful investments across various sectors, including retail, leisure, and industrial services. Notable investments include grocer Asda, fitness chain David Lloyd Leisure, and portable power generator supplier Aggreko. TDR’s expertise in leveraging debt financing to support acquisitions has been a key factor in its success, enabling the firm to pursue ambitious growth strategies. Founded in 2002 by former bankers Manjit Dale and Stephen Robertson, with backing from hedge fund billionaire Paul Tudor Jones, TDR Capital has consistently demonstrated its ability to identify and capitalize on promising investment opportunities. The leadership transition to Gary Lindsay and Tom Mitchell two years ago marks a new chapter in the firm’s evolution, continuing its legacy of strategic investment and value creation. The acquisition of Corpacq represents a significant addition to TDR’s portfolio, further diversifying its holdings and strengthening its position in the UK market. The partnership between these two firms promises a future of continued growth and innovation, building on Corpacq’s established success and leveraging TDR’s extensive resources and expertise.
