Executive summary - Udo Bullmann

DT-GROUP1. Company descriptionDT Group A/S imports wood and trades building materials (special wood products) and runs chains of buildingmarkets. It provided building materials and tools etc to professionals and private in Denmark and Sweden. Turn overis 2½ bn € and numbers of employed 8.000. DT Group was in many years listened at the Copenhagen StockExchange under the name Det Danske Trælastkompani (Danish Wood traders). The DT Group A/S was listened atthe Copenhagen Exchange2. Economic and social effects2.1 Private equity fund descriptionIn 2003 the DT group was bought by the private equity group CVC Capital Partners (90%) and a holding companyformed by the management group in the DT Group A/S (10%). Price: 0, 9 bn €The profit of DT Group A/S has increased very must the last 3 years, thanks to the very positive conjuncture inDenmark special for the housing and building industry.When the company was listened, it usual declared a dividend at 10 - 15 mill € pr year, which was a ratio of 30 % ofthe profit of the year, the company to times declared a special dividend at 200 mill € two times (2004/05 and2005/06). The holding companies used in the LBO used the dividend to pay back the financing of LBO.The increased dividend was financed by better cash flow of the company, which – among other initiatives – pressedits supplier to give a longer credit.2.2 Social effectThe numbers of employees have increased with 10%, but this is only because of acquisitions of formerly privateowed building markets.The direct investment in property and equipment is lower than the yearly deprecations.The effective tax rate of the profit of the company was decreased because of joint taxation with the holdingcompanies, which were the direct owners, and had taxable negative profit because of interest of the financing of theLBO.3. Exit of the private equityIn 2006 the CVC and the management team sold the DT-Group to the British building materials provider Wolselyplc. for the price of 2 bn €.