European Capital Commits 27.5 Million Euro Equivalents In Multi-Currency Unitranche Bonds Supporting Bridgepoint's Acquisition Of The Flexitallic Group
ST. PETER PORT, Guernsey, July 23, 2013 /PRNewswire/ -- European Capital Limited and its affiliates ("European Capital") announced today that they invested 20 million Euro equivalents out of a multi-currency unitranche financing supporting Bridgepoint's acquisition of The Flexitallic Group ("the Company") from Eurazeo PME. In addition, European Capital committed to invest 7.5 million Euro equivalents out of a multi-currency unitranche acquisition facility undrawn at closing.
The Flexitallic Group is a global leader in specialized high-end sealing solutions and products serving the oil and gas, power generation, chemical and petrochemical industries in emerging and developed markets. The company has long term relationships with leading blue chip clients and has its own manufacturing facilities in the U.S., Canada, the United Kingdom, France and China, in addition to an extensive network of licensed distributors. Between 2006 and 2012, the company grew its sales from 18 million Euros to 210 million Euros, while increasing its employee-base from 46 to 1,250.
"We are very pleased to invest once again in unitranche bonds alongside the Private Debt Team of AXA Private Equity to support Bridgepoint's acquisition of The Flexitallic Group," said Tristan Parisot, Managing Director of European Capital Financial Services Limited ("ECFS"). "This investment illustrates our strategy of providing flexible financing to leading global midcaps backed by successful sponsors. As a financing partner of Bridgepoint since 2007, we strongly believe their experience will add value and further strengthen The Flexitallic Group."
In May 2012, European Capital invested 24 million Euro equivalents in the multi-currency unitranche bonds arranged by the Private Debt team of AXA Private Equity to support The Flexitallic Group's refinancing and acquisition of Canada-based AGS. In December 2012, European Capital invested $7 million in additional unitranche financing to support The Flexitallic Group's acquisition of Houston-based Custom Rubber. Through these investments, which have been repaid as part of Bridgepoint's acquisition, European Capital generated an overall IRR of 18.1%.
"As a long-time partner of The Flexitallic Group, European Capital is pleased to support an excellent management team with an impressive track record," stated Stephane Legrand, Managing Director at ECFS. "Over the past 18 months, this team has also managed to increase the Group's exposure to non-conventional energies – oil sands in Canada, tight oil and shale gas in the US, the most dynamic segments of its underlying markets, thus reinforcing its already attractive growth prospects."
"As a trusted partner of The Flexitallic Group, European Capital has been very supportive of the Group's expansion in the past," stated Remi Toledano, President and CEO of The Flexitallic Group. "We appreciated European Capital's expertise in energy industries, and their introduction to US-based experts."
"We were pleased to benefit from The Flexitallic Group's existing financing partners', including European Capital's, renewed trust and capacity to finance the Group's international expansion," said Frederic Pescatori, Partner at Bridgepoint and responsible for investment activity in France. "We have worked with European Capital on previous investments and their quick understanding of our portfolio companies' businesses and familiarity with the Flexitallic Group made them an ideal partner for this transaction."
Since its inception, European Capital Limited has invested 3.4 Euro billion in over 100 companies in Europe. In France, European Capital has invested 1.1 Euro billion in 29 different companies.
ABOUT EUROPEAN CAPITAL
European Capital is an investment company for pan-European equity, mezzanine and senior debt investments with 1.2 Euro billion in assets under management. European Capital is a wholly-owned affiliate of American Capital, Ltd ("American Capital"). It is managed by European Capital Financial Services (Guernsey) Limited ("ECFSG"), and its sub investment manager European Capital Financial Services Limited ("ECFS" and, together with ECFSG, the "Investment Manager"), wholly-owned affiliates of American Capital. The Investment Manager has offices in London and Paris. As of 30 June 2013 the Investment Manager had 5 investment teams with 24 investment professionals and employed 31 support staff. European Capital and its affiliates will consider senior and mezzanine debt investment opportunities from 10 million to 40 million in either euros or sterling and up to 400 million for One Stop Buyouts®. For further information, please refer to www.EuropeanCapital.com.
ABOUT AMERICAN CAPITAL
American Capital, Ltd. (Nasdaq: ACAS) is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages $21.2 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $112 billion of total assets under management (including levered assets). From its eight offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from $10 million to $750 million. For further information, please refer to www.AmericanCapital.com.
Contact: European Capital Financial Services Limited + 33 1 40 68 06 66
Stephane Legrand, Managing Director
Olivier Meline, Investment Director
SOURCE European Capital Limited
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