ST. PETER PORT, Guernsey, April 18, 2013 /PRNewswire/ -- European Capital Limited and its affiliates ("European Capital") announced today that they received proceeds of €7.2 million from exiting their investments in Scaff'holding (the "Company"). European Capital realized a c. 1.8x money multiple on its initial investment, representing a c. 13% IRR.
In April 2007, European Capital invested €7.5 million in the mezzanine facility, along with Capzanine, to support the secondary buyout of Scaff'holding by Equistone, formerly Barclays Private Equity. In October 2011, the Company partially repaid the mezzanine facility and European Capital received €3.1 million.
Scaff'holding, based in Paris, France, is the French leader in the rental and sale of scaffolding and shoring systems. Through its network of local branches, Scaff'holding offers a comprehensive range of equipment and services to meet all customers' needs especially in terms of safety and compliance with regulations. The Company is active in the fields of construction, public works, industry, entertainment and temporary structures for public events. European Capital's exit comes as Scaff'holding and its majority shareholder, Equistone, agreed on a tertiary buyout led by Management and supported by minority equity investors.
"We have been very pleased to support management and Equistone over the past six years," said Tristan Parisot, Managing Director of European Capital Financial Services Limited ("ECFS"). "This investment illustrates our long-term investor profile and ability to offer flexible financing solutions."
"Scaff'holding has a proven track record of resilience and cash-flow generation," said Stephane Legrand, Managing Director of ECFS. "The Company has also demonstrated its ability to grow internationally, notably by expanding its presence in Brazil."
ABOUT EUROPEAN CAPITAL
European Capital is an investment company for pan-European equity, mezzanine, unitranche and senior debt investments with €1.2 billion in assets under management. European Capital is a wholly-owned affiliate of American Capital, Ltd. ("American Capital"). European Capital is managed by European Capital Financial Services (Guernsey), a wholly-owned affiliate of American Capital (the "Investment Manager"). The Investment Manager has offices in London and Paris. As of 31 December 2012, the Investment Manager had 5 investment teams with 22 investment professionals and employed 27 support staff. European Capital and its affiliates will consider senior, unitranche and mezzanine debt investment opportunities from 10 million to 40 million and up to 400 million for One Stop Buyout®, in either in euros or in sterling. 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 $18.6 billion of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with $117 billion of total assets under management (including levered assets). Through an affiliate, American Capital manages publicly traded American Capital Agency Corp. (Nasdaq: AGNC) with approximately a $13 billion market capitalization and American Capital Mortgage Investment Corp. (Nasdaq: MTGE) with approximately a $1.5 billion market capitalization. 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
SOURCE European Capital Limited