ABN Amro Capital, the private equity arm of banking group ABN Amro, has bought Amtico International, a flooring business, in a secondary buyout from Electra Private Equity, a mid-market rival.
The transaction, which values Amtico International at £98.25 million (€144 million), is expected to complete in the next four weeks. Royal Bank of Scotland provided senior debt and working capital. Electra Private Equity invested in the mezzanine tranche of the deal.
Paul Southwell, managing partner at ABN Amro Capital, said that the firm invested £30 million to acquire a 56 percent stake in the company, investing alongside management. Electra Private Equity rolled over a proportion of its proceeds to take an 18 percent stake in Amtico International.
Electra Private Equity backed the £52.8 million management buyout of Amtico International from textiles group Courtaulds in 1995.
As part of the deal, ABN Amro Capital’s Simon Tuttle and Grant Paul Florence will join the board of Amtico International.
“Electra brought in a young management team two or three years ago and they have a lot of plans for building the business,” said Southwell. “It brings out about fifty products a year and they’ll be looking to expand the business with quite a few new products in the pipeline.”
Established 40 years ago, Amtico International produces resilient flooring products for residential and commercial interiors. Clients include UK high street stores Marks & Spencer, Tesco and Top Shop and football club Manchester United.
Amtico International reported sales of £86 million and £11 million EBITDA in the year to 31 March 2006.
Last December, global mid-market buyout firm Vestar Capital paid over €300 million for Nybron, a Swiss wood flooring company, from Nordic Capital and trade owner HIAG.