MSG Acquisition

RNS Number:4275S
ACP Capital Limited
16 April 2008

             Co-investment with GCI Management and German Expansion

                                 16 April 2008

ACP Capital Limited ("ACP Capital" or the "Company": APL.LN), the specialist
integrated finance and asset management company focused on European small and
medium sized enterprises ("SME"s), today announces its first equity
co-investment with GCI Management AG ("GCI"), ACP Capital's key strategic
partner for its equity strategy in Germany. ACP Capital is acquiring 40% of the
share capital of the newly established GCI Automotive Holding GmbH 
("AutoHoldCo"), which will become part of ACP Capital Strategic Equity's ("ACP 
Capital SE") portfolio, while GCI will hold the remaining 60% of the shares.

ACP Capital Strategic Equity

The shareholding in AutoHoldCo and subsequent deal flow will be transferred to
ACP Capital SE following its launch next year. ACP Capital SE is intended to be
a strategic equity vehicle that will hold strategic equity investments in
European SMEs. These positions are intended to be originated through equity-
focused localised origination platforms (such as GCI), through ACP Capital's
network of contacts and co-investments, and as a result of ACP Capital's
integrated finance strategy. ACP Capital SE intends to target a portfolio of
European equity assets diversified by geography, industry sector and company
size. The investments of ACP Strategic Equity will be either 1) direct
investments, 2) co-investments (like MSG), or 3) fund investments.

This transaction, in which ACP Capital is investing circa Euro3 million from its
cash resources, also represents the first co-investment between ACP Capital and
GCI. The partnership fulfils a key strategic objective, set out at the time of
ACP Capital's investment in GCI, of building a pan-European merchant banking and
asset management platform for SMEs in its core markets of Germany, Italy,
France, and the UK.

The transaction will see AutoHoldCo will acquire 94% of the share capital of
Maschinenfabrik Spaichingen GmbH ("MSG"), which will become the cornerstone
investment for AutoHoldCo. AutoHoldCo intends to consolidate the fragmented
automotive parts supply industry by selectively acquiring mainly smaller German
based companies in this sector, where the businesses are characterised by highly
skilled engineering expertise, specialist knowledge and quality products in the
niche markets of plastic, metal parts and special machinery. Several targets
have already been identified.

Maschinenfabrik Spaichingen GmbH

MSG is a medium-sized, formerly family-owned, German business and is active in
three main areas: automotive parts manufacturing for commercial diesel engines,
control engineering (mainly circular knitting machines) and the manufacturing of
ultrasonic, hot air and laser welding machines for the automotive industry. All
products are characterised by highly skilled engineering work.

MSG is engaging in substantial growth capital expenditure over the next 5 years,
primarily to deliver new contracts recently secured. The capital expenditure is
expected to be partially funded by debt and equity. Total revenues of the MSG
group in 2007 were approximately Euro67.5m and total assets are around Euro65m.

GCI Management AG

GCI is a Deutsche Borse-listed private equity company focused on the SME sector
in the German-speaking part of Europe. Alongside its investment activities, GCI
also operates a consultancy business in the areas of strategy, management and
financing. GCI intends to continue to manage its existing assets and funds under
management with future growth focused on later-stage private equity and
turnaround investment opportunities, primarily in Germany. ACP Capital aims to
provide a series of financing products to GCI's existing and future investment
portfolio which would enable GCI to expand its financial product ranges in areas
such as senior debt, and senior and junior mezzanine. This partnership is also
expected to enable GCI to increase overall transaction sizes, leading to
possibilities of investing in majority stakes and buyouts with longer time
horizons.

ACP Capital anticipates that the strategic relationship with GCI will generate a
range of new investment opportunities. As a result of a co-investment agreement,
ACP Capital is granted rights to co-invest in the equity of GCI transactions on
the same terms as GCI, generating potential deal flow for ACP Capital SE.
Additionally, ACP Capital will be the preferred debt funding partner for GCI
transactions, resulting in potential opportunities for senior debt underwriting
and mezzanine lending opportunities for ACP Mezzanine Limited, the AIM-listed
sub-investment grade lender managed by ACP Capital.

Other benefits for ACP Capital arising from the acquisition of the strategic
shareholding include leasing business opportunities throughout Europe and
further market presence in Germany, following the establishment of an associated
office in Munich.

Derek Vago, Chief Executive Office of ACP Capital, commented:

"This first equity co-investment with GCI underlines the possibilities of ACP
Capital's business model. We are looking forward to continuing the expansion of
our product range of new investment opportunities and improving our market
presence."

Enquiries to:

Rob Bailhache & Nick Henderson, Financial Dynamics          [phone]
(Media Relations)
Sacha Macintosh, ACP Capital UK LLP                         [phone]
Chris Wells, Stewart Wallace, Collins Stewart               [phone]


For further information on ACP Capital, please visit www.acpcapital.com.

About ACP Capital

ACP Capital (LSE AIM: APL) is a Jersey-incorporated specialist integrated
finance and asset management company focused on providing equity and debt
products to European small and medium sized enterprises (the "SMEs").

ACP Capital aims to benefit from opportunities generated from the strong growth
in SME demand for integrated finance, combined with the reduced appetite for SME
lending among traditional banks owing to higher regulatory capital requirements.

In order to better serve the SME markets directly, ACP Capital is establishing
localised operating platforms (the "Platforms") in its key markets of Germany,
France and the United Kingdom. These include to-date Leasecom, a leading SME
finance provider in France, and GCI, a specialist private equity firm for the
German SME market. Further Platforms are being evaluated currently to serve the
remaining key markets.






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