18 March 2022

 Duke Royalty Limited

("Duke Royalty", "Duke" or the "Company")

Follow-On Investment into Existing Royalty Partner

Duke Royalty Limited (AIM: DUKE), a provider of alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and North America, is pleased to announce a follow-on investment of CA$10.3 million (approximately £6.2 million) into its existing royalty partner Creō-Tech Industrial Group Inc. ("Creō-Tech").

Creō-Tech is a Canadian holding company that acquires businesses within the engineering, procurement and construction ("EPC") sector in both commercial and industrial settings.

Highlights:

·     Creō-Tech will use this contribution from Duke to acquire California based MD Stainless Services, which specialises in the design, engineering, fabrication and installation of sanitary processing systems for the pharmaceutical, biotech, diary, food and beverage industries

·     The financing increases Duke's total investment into Creō-Tech to CA$18.5 million (approximately £10.9 million)

·     MD Stainless Services represents Creō-Tech's first acquisition supported by Duke, in line with Creō-Tech's stated buy-and-build strategy

·     All other terms of the follow-on contribution are the same as Duke's previous investment into Creō-Tech 

Neil Johnson, CEO of Duke Royalty, said:

"This deal is consistent with our current investment strategy, in that it supports a strong management team that is executing a buy-and-build model through the acquisition of long standing, profitable companies in attractive niche and high margin markets.

"With our investment into Creō-Tech last year we successfully entered into North American markets, and this transaction represents a transformative and important acquisition for Creō-Tech. Along with our other North America royalty partner, Atlas Holdings, Creō-Tech demonstrates the global appeal of Duke's capital and the quality of opportunities in that market."

Dirk Maritz, CEO of Creō-Tech, said:

"We are incredibly fortunate to partner with Duke Royalty for this venture. Their capital enables business owners to grow their businesses without compromising control or ownership and removes refinancing risk. With this partnership, Creō-Tech continues to pursue further targeted acquisitions that will fuel continued strategic growth.

"This acquisition continues the successful execution on our buy and build strategy. We now offer the North American market a full-service solution in very specific niche markets that includes industrial engineering, design, manufacturing, construction and automation."

About MD Stainless Services

Founded in 1988, MD Stainless Services is a long-standing, profitable, and owner-managed business that specialises in the design, engineering, fabrication and installation of sanitary processing systems for the pharmaceutical, biotech, diary, food and beverage industries.

Engineering & installation includes:

·     complete stainless steel process plants & utility piping

·     water & liquid injection systems

·     de-ionized water systems

·     ozone systems

·     domestic water hook-ups

·     treated water systems & chilled piping systems

·     cooling towers

·     utility stations

·     flow panels

·     enclosures

·     electro-mechanical systems

With Creō-Tech's engineering capability, project management expertise and support, MD Stainless Services is expected to continue growing in existing markets and gaining a larger share of the food and beverage, pharmaceutical, nutraceuticals and semi-conductor industries.

About Creō-Tech

Creō-Tech is a privately-owned group of companies offering innovative multi-disciplinary engineering and manufacturing applications in energy, power generation, material handling, mining, manufacturing and processing, food & beverage, pharmaceuticals, telecommunications and utilities markets. In addition to its reputable manufacturing, fabrication and electro-mechanical construction operations, Creō-Tech offers a full complement of services to the North American Industrial mid-market, including structural, electrical, mechanical & electro-mechanical design and engineering services, solutions driven automation and various technical support solutions. Creō-Tech offers a competitive advantage by executing on a customized approach, to meet client's needs with innovative solutions. To learn more, visit Creōtechgroup.com.

***ENDS***

For further information, please visit www.dukeroyalty.com or contact:

About Duke Royalty

Duke Royalty Limited provides alternative capital solutions to a diversified range of profitable and long-established businesses in Europe and abroad. Duke Royalty's experienced team provide financing solutions to private companies that are in need of capital but whose owners wish to maintain equity control of their business. Duke Royalty's royalty investments are intended to provide robust, stable, long term returns to its shareholders. Duke Royalty is listed on the AIM market under the ticker DUKE and is headquartered in Guernsey.