ANNUAL REPORT 2007 | 2008 - Gimv

Gimv takes 86 percent holding
WALL COVERING SPECIALIST GRANDECO READY FOR GROWTH
Grandeco has clearly grasped that wallpaper is once again in. As well as traditional patterns, Grandeco also produces contemporary
and hip motifs which are proving popular with consumers. Its wallpaper is also easier to fi x to the wall, which is an attractive
advantage for DIYers.
Grandeco, a former division of West Flemish carpet giant Balta, wants to travel an independent course in order to take better
advantage of market opportunities. Grandeco has 10 percent of the European market, with leadership positions in France and
in the Benelux. The intention is to maintain this position and to grow in Eastern Europe, where wallpaper imports are growing
by 20 percent a year. The company is looking for further growth by a constant focus of quality products and modern creations.
Nor does the company exclude growth through acquisitions. Finally, Grandeco is seeking to improve its profi tability by optimally
coordinating the processes in its two production facilities.
Corporate Investment Belgium
For Corporate Investment Belgium, 2007 saw a very healthy and varied dealfl ow. The investment team
completed buy-outs in Acertys, Le Cobourg, Grandeco and Lintor-Verbinnen and provided growth capital to
Verhaeren. The business unit is also seeking to profi le itself as a mezzanine capital provider, as illustrated by
its investment in VAG Armaturen.
The Belgian private equity market remained strongly competitive
in 2007. Not only were local players particularly active, but
Gimv’s counterparts from the Netherlands, the United Kingdom
and France exhibited considerable interest in Belgian deals. This
increased competition and valuations, as elsewhere in Europe.
The team reacted to this situation with more creative deals and
by supporting a more active buy and build strategy in different
portfolio companies. With the slowing of the economy and the
credit crisis, the team expects that valuations will fall in 2008 to
more conservative levels, potentially providing new and interesting
investment opportunities.
The Belgian private equity market showed to be very healthy
in 2007 with private equity investments in Belgium totalling
EUR 2 billion versus EUR 1.4 billion in 2006. The investment
volume in larger deals is expected to reduce in 2008, now that
banks have become more reticent towards fi nancing these
transactions, but this development can be expected to be
less strong in the small transactions and midcap deals market
segment.
Investment focus
Corporate Investment Belgium aims to invest in small to mediumsized
companies with enterprise values of up to EUR 125 million.
During the past year Gimv invested on average in slightly
larger deals in this market segment.
As well as buy-outs and providing growth capital, the team is
concentrating in extending mezzanine activities. This mezzanine
fi nance can be used both as growth fi nancing and in buy-out
transactions, alone or in cooperation with private equity funds
with which Gimv collaborates.
INVESTMENTS
In 2007-2008 Corporate Investment Belgium invested
EUR 99.3 million, of which EUR 72.7 million in new investments
and EUR 18.4 million in follow-on investments. To meet earlier
commitments, its also invested EUR 8.2 million in third party
private equity funds.
Acertys Group
www.acertys.com
Acertys sells, distributes and acts as an integrator of high tech
medical apparatus. With its own team of technical specialists,
Acertys provides specifi c user training. The group also supplies
technical equipment to fi refi ghting, police, defence and civil
defence services and distributes medical consumables to hospitals,
homes for the elderly and fi rst aid services. Acertys came
into being in 2007 through the merger of Meda, Vandeputte
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