ST. PETER PORT, Guernsey, Sept. 8, 2014 /PRNewswire/ -- European Capital Limited and its consolidated subsidiaries ("European Capital") announced today that they exited their investment in Groupe Sud Robinetterie (or the "Company") through the takeover of 21 Partners' stake in the Company by Naxicap Partners. In April 2007, European Capital invested in senior and junior mezzanine bonds to support the primary buyout of the Company by 21 Partners. European Capital realized a money multiple of 2.1x on its total investment, representing an IRR of 12.3% over the life of the investment.
"We are very pleased with the outcome of this transaction," said Tristan Parisot, Managing Director of European Capital Financial Services Limited ("ECFS"). "This investment demonstrates our ability to provide flexible financing to leading midcaps well positioned to expand geographically. Today we are actively seeking investment opportunities in similar midcap businesses with commitments of up to €100 million, especially in private debt since this asset class currently displays an attractive risk-reward profile in Europe."
"Throughout our seven year investment in Groupe Sud Robinetterie, management has successfully built a favorable environment for growth based on international expansion," said Etienne Haubold, Managing Director at ECFS. "21 Partners has been a supportive shareholder who established a trusted and efficient relationship with management."
Groupe Sud Robinetterie is a manufacturer and distributor of high-end valves for the oil & gas, petrochemical, power generation and chemical industries. The Company predominantly manufactures valves for the high-end niche of trunnion-mounted ball valves used primarily in the upstream segment of the oil & gas industry, as well as conventional valves for a wider range of applications and industries, and wholesale business.
"We've been pleased to work with European Capital who expressed a strong interest in Groupe Sud Robinetterie's strategic orientations and quickly developed an in-depth understanding of the Company's business. We appreciated having them as a valuable financing partner," said Stephane Perriquet, Managing Partner at 21 Partners.
"European Capital has been a strong and supportive financing partner to Groupe Sud Robinetterie, demonstrating flexibility and pragmatism over the seven years of our collaboration," said Jean-Francois Deprat, CEO of Groupe Sud Robinetterie.
For more information about European Capital's initial investment in Groupe Sud Robinetterie, click here: http://www.europeancapital.com/en/our-portfolio/groupe-sud-robinetterie
ABOUT EUROPEAN CAPITAL
European Capital is an investment company for pan-European private equity, mezzanine and senior debt investments with €0.9 billion in assets under management. European Capital is a wholly-owned affiliate of American Capital, Ltd ("American Capital"). It is managed by European Capital Asset Management Limited ("ECAM" or the "Investment Manager"), a wholly-owned affiliate of American Capital. The Investment Manager has offices in London and Paris. As of 30 June 2014 the Investment Manager had 24 investment professionals and employed 31 support staff. European Capital and its affiliate, American Capital, will consider private equity transactions euros or sterling of up to 400 million for One Stop Buyouts® and 10 million to 40 million for senior, mezzanine and unitranche debt investment opportunities. 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, energy & infrastructure and structured products. American Capital manages $19 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $83 billion of total assets under management (including levered assets). Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC), American Capital Mortgage Investment Corp. (Nasdaq: MTGE) and American Capital Senior Floating, Ltd. (Nasdaq: ACSF) with approximately $11 billion of total net book value. 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.
ABOUT 21 PARTNERS
21 Partners is a European private equity group managing Euro 1.3 billion on behalf of international institutional investors. An active shareholder alongside managers, led by Alessandro Benetton and Gerard Pluvinet, 21 Partners invests in companies based in France, Italy, Switzerland and Poland, propelling them to their next stage of development through acceleration of growth and increase in efficiency. Over the past 21 years, 21 Partners has completed some 100 investments. For further information, please refer to www.21partners.com.
Contact: + 33 1 40 68 06 66
Etienne Haubold, Managing Director
Olivier Meline, Investment Director
SOURCE European Capital Limited