Recapitalisation of Fives-Lille by Industri Kapital
Industri Kapital, a leading European private equity firm, today announces the recapitalisation of Fives-Lille. This €135 million refinancing will allow Industri Kapital to fully repay the convertible bonds and shareholder loans put in place at the time of the initial acquisition of Fives-Lille and, as a consequence, to realise part of its investment. The recapitalisation has been achieved due to the excellent performance of Fives-Lille, which has seen its operating profit more than double at constant scope, since IK took it private from the Paris stock exchange in June 2001.
During the last few years, Fives-Lille has been transformed under the management of Frederic Sanchez (CEO) by focusing on its core activities (automotive, aluminium, steel and cement), in order to become a pure engineering group. The completion of the recapitalisation will allow Fives-Lille and Industri Kapital to pursue its strategy, identifying opportunities for external growth, mainly in the automotive sector, in order to strengthen the position of the group, both geographically and in terms of relations with the manufacturers.
For the recapitalisation, Royal Bank of Scotland was appointed Global Mandated Lead Arranger and was assisted by Credit Lyonnais and IKB (Mandated Lead Arrangers) and by HSBC-CCF (Lead Arranger).
Citigate Dewe Rogerson Industri Kapital
Sarah Gestetner +44 20 7282 2920 Jean-Baptiste Wautier +44 776 855 7786
Daphne Claude +44 20 7282 2994
About Industri Kapital
Industri Kapital mainly invests in mid-sized companies with strong market positions and profit improvement potential operating in mature and stable industries. Industri Kapital creates long-term value through active ownership and operational improvement in the acquired businesses, working in close partnership with portfolio company management.
In France, Industri Kapital's investments include Laho Equipment, the number two construction equipment rental group in France (June 2000), Fives-Lille (February 2001) and Labeyrie, the European leader of smoked salmon and foie gras (March 2002).