3i backs €125m Hyva buyout

The UK firm has backed management in the €125m buyout of Hyva Investments, a Dutch hydraulic solutions provider to the commercial vehicle sector.

3i, the UK-headquartered private equity firm, has backed a management buyout of Hyva Investments, a Netherlands-based group of companies involved in the production and sale of loading systems and components for commercial vehicles.

The firm is backing the existing management team at Hyva, although Jaap Vaandrager, the company founder, is retiring from day to day duties at the firm and is being replaced by Louwrens Dijkstra.

3i has agreed to pay €125 million ($158 million) for the business in a deal backed with debt financing from ABN Amro, which has invested in Hyva since it was established in 1979.

Hyva is an international market leader operating in high growth emerging markets as well as more mature European markets. In addition to its four EU production facilities, Hyva also has sites in Brazil and India, with a new facility soon to open in China. Hyva has a direct sales presence in 16 countries in Europe, Asia, South America and Africa, and overall is present in over 120 countries via distributors.

Hyva was previously the subject of a buyout in 1999 by a group of investors led by Alpha Beteiligungsberatung. Annual turnover increased from €106 million in 2000 to €147m in 2003 and Alpha has reinvested an undisclosed sum in the current transaction, although the firm has not disclosed details of its return on investment.