Apollo Precision Manufacturing Limited (Apollo), an investment vehicle managed by EverEdge Capital, has acquired Accord
Precision Limited (Accord), NZ’s largest certified precision manufacturing and assembly business.
Accord provides end-to-end precision manufacturing and assembly - from R and consultative design through to complete assembly and distribution. The business was established 50 years ago and
achieved close to NZD $30 million in sales for the year ending 31 March 2021. It has successfully transitioned from
being a conventional machine shop to a full-solution provider for sophisticated OEM global customers, including F, John Deere, Assa Abloy and Kirby Morgan.
Accord also maintains a comprehensive portfolio of international accreditations and is one of the only manufacturers in
New Zealand to hold both ISO and FDA certifications.
Apollo was established to facilitate the acquisition of Accord and is managed by EverEdge Capital. EverEdge Capital is
the principal investment arm of EverEdge Global, a specialist adviser focussed on intangible asset strategy, valuation,
and commercialisation. EverEdge Capital undertook the acquisition to facilitate the next phase of growth and development
for Accord while enabling the retirement of Accord’s owner-managers. The transaction was executed by way of a 100% share
purchase.
EverEdge Capital, Chief Investment Officer, Francis Milner stated, “Today, intangible assets are a key driver of value
and growth within an organisation. However, these assets are typically absent, mispriced, or under-valued on balance
sheets. This has created a market vacuum whereby this asset class is largely ignored by traditional investment funds and
significant intangible asset value remains unrealised or unknown.
“Despite Accord being relatively asset heavy, we identified that some of its most valuable elements are intangible and
off-balance sheet. By viewing the business through an investment lens focused on intangible value, we identified several
assets that create a material competitive advantage relative to peer businesses. These assets help explain how the
business has secured global Tier 1 OEM customers from ‘down-under’ while growing and remaining profitable.
“What is integral to Accord’s value proposition is the alignment of its key intangible assets including technical
know-how, systems and controls, long-term customer relationships, skilled critical mass workforce, superior track
record, and leading international accreditation. This enables Accord to deliver better customer experiences and results
in profitable long-term relationships.
“As intangible assets have the potential to be scaled exponentially, we are looking forward to building on the strong
foundations already in place and to leveraging these assets to continue to grow the business and serve our customer ever
more effectively.”AdvisersIntangible Asset Adviser: EverEdge Global
M Legal Adviser: Anderson LloydFundingBank Lender: KiwibankTransaction MetricsAccord Revenue FY2021: NZD $28mAbout Accord Precision
Accord was founded in 1970 by the Hanson and Stronge families and is now the largest precision manufacturing and
assembly business in New Zealand. The business is recognised as a total solutions provider (TSP) with a skilled
workforce, advanced production facilities, and proven track record supported by a range of Tier 1 OEM customers.
Accord has 70+ employees and operates two distinct, yet interdependent operating arms.
The first, the firm’s manufacturing arm and facility, focuses on the design and production of high-value and complex
components, often in repetitive runs, which involve multiple engineering processes and subcomponents including metal
injection mouldings, castings, forgings, laser cut parts. In many cases, these components are integral to the final
product and represent years of R, invaluable intangible assets and deep technical know-how.
Accord’s second arm, an assembly & controlled work environment (CWE) facility, specialises in the complete assembly and distribution of components.
Accord’s CWE facility also allows for ISO accredited ultrasonic oxygen cleaning and inspection – critical for customers
whose products require an extremely high degree of care and preparation.About EverEdge Capital
EverEdge Capital is the principal investment business and subsidiary of EverEdge Global. EverEdge Capital focuses on
investment in mid-market companies where sustainable value can be generated through operational investment and
proprietary intangible asset intelligence. EverEdge Capital is targeting investment toward companies in the upper /
mid-market with revenues >$30m and which have an established operating model.About Francis Milner
Francis Milner is a former M investment banker at Nomura and Sumitomo in London and a founding partner of VALTEGRA, a European focussed private
equity fund. Francis has successfully completed more than NZD $12bn M transactions and principal investments primarily in the upper mid-market.About EverEdge Global
EverEdge Global was founded in 2007 and is a global intangible asset specialist advisory firm. The business is
headquartered in Singapore with offices in Australia and New Zealand. EverEdge Global assists senior management, boards,
and investors to identify, evaluate, manage and monetize intangible assets. The firm has successfully completed more
than 1,000 client engagements across North America, Europe, Asia, and Australasia. Clients include Fortune 100
corporations, institutional investors, governments, research institutes and ambitious start-ups.