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European round-up
Meanwhile, Ergon Capital Partners acquired French manufacturer and distributor of in vitro diagnostic equipment and reagents
ELITech Group, for a cash consideration slightly in excess of €100m. Previous backers BNP Paribas Développement, Idia
Participations, Naxicap and Synergie Finance all reinvested and continue to hold a stake in the company.
On the growth capital front, Naxicap provided communication agency Groupe MJA with €2.4m of funding. AXA Private Equity
also took an 11% stake in IT services company Arismore, while iXO Private Equity invested an undisclosed amount in medical
diagnostics laboratory CBM.
■ Southern Europe unquote”
Buyouts boomed throughout Southern Europe in November, though Italy struggled to keep pace with Spain’s healthy deal
values. Three large transactions were recorded on the Iberian Peninsula, the most significant of which was led by CVC Capital
Partners, which doubled its 35% stake in Galician fibre optics company R Cable in exchange for more than €157m. Advent
International also completed a €100m buyout of property valuation firm Tinsa, while Investindustrial bought ambulance group
Transport Sanitari Catalunya from parent company Agrupació Mútua. Meanwhile, Basque Country government-backed SGECR
acquired a 35% stake in Bilbao-based corporate diaries manufacturer Ediciones Deusto.
Though transaction values in Italy were comparably modest, optimism continues to grow among the Italian community, many of
whom discussed the state of the industry at the unquote” Italia Private Equity Congress in Milan on 11 November. The conference
revealed the close of the €1.2bn Fondi Italiani di Investimento, a public-private vehicle launched by the Italian government in
a bid to strengthen local SMEs. In the same month, three mid-sized buyouts were realised, namely PM & Partners’ purchase of
air freshener manufacturer Relevi for an estimated €75m, Cognetas’s €45m SBO of Arcaplanet from Credem Private Equity and
Platina’s acquisition of 10 solar plants in Puglia for around €35m.
Portugal was typically silent on the deal front, although speculation about an imminent agreement between Trilantic Capital and
educational publisher Leya suggests a more positive prognosis for December.
■ UK & Ireland unquote”
Ireland’s reputation as a financial centre took a major hit in November as rising tensions over the country’s debts, partially due
to the cost of bailing out its banks, led to international action. The EU, IMF and UK all stepped in to provide support for the
country. The moves helped stabilise the euro and the Irish economy, but political discontent surrounding the issue could yet
cause further problems.
In the UK, LDC hit the headlines as political pressure on banks to dispose of non-core assets increased. LDC said it would
raise money privately in future, after being criticised for buying firms at high prices during the downturn. Barclays gave further
details of its private equity group’s spinout. The management are to agree a deal to share profits with the bank for a set period,
rather than funding the acquisition upfront.
On the deal front, Doughty Hanson won an auction for Vue Entertainment for £450m. The auction saw competition from
BC Partners and OMERS Private Equity. Investors were attracted to Vue because it had weathered the recession well and is
set to see strong growth from the growing popularity of 3D films. The lower end of the market saw a flurry of sub-£10m deals
including mini-buyouts, such as the MBO of RDL. The £5m acquisition of the recruitment specialist was driven by expected
growth in the sector.
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