Hermes Private Equity has sold its majority stake in OyezStraker Group, a UK distributor of office supplies, to ABN AMRO Capital for £41.2 million (€60.4 million, $82.2 million). Hermes will roll over £7.8 million in the deal, and management will also make a substantial re-investment.
Hermes, which originally invested in the business in June 2004, is thought to have made a return of nearly three times and an internal rate of return of about 40 percent.
Paul Southwell, managing partner at ABN AMRO Capital, said: “We competed in the 2004 auction for OyezStraker, so we have known the management team for a while. This time around, we beat a number of other private equity firms and some trade bidders.”
OyezStraker is the UK’s biggest distributor of office supplies, with sales of £190 million. It was founded in 1997 through a merger of two businesses called Oyez and Straker. Hermes Private Equity is the private equity business of UK asset management firm Hermes and has nearly £1 billion under management.
ABN AMRO Capital is the global private equity business of Dutch bank ABN AMRO and has €2.5 billion under management. It recently sold UK caravan park operator Park Resorts to buyout house GI Partners for £440 million, generating an internal rate of return of 47 percent. The bank is spinning out its private equity operations in a bid for more third party money for its buyout and expansion capital business.