ABN buys into roofing business

ABN AMRO Capital has completed the management buyout of Inalfa Industries’ roof systems subsidiary in a deal thought worth up to E150m.

Private equity firm ABN AMRO Capital has acquired a controlling stake in the roof systems division of Inalfa Industries, the Dutch manufacturing group. Although financial details of the deal have not been disclosed, the enterprise value is thought to be between E100 and E150m.

ABN AMRO and US banking group Comerica Bank, which has a strong franchise in the automotive sector, are providing debt financing for the deal representing approximately 50 per cent of the transaction size. Inalfa Industries will remain a minority shareholder in the business.

Inalfa industries decided to sell the division a year ago because it did not have the resources to support the company’s recent growth, said Paul van Steijn, senior investment manager at ABN AMRO Capital. Ernst & Young then set up an auction for the business.

Commenting on the strategy for the investment going forward, van Steijn said: “The plan is to support further growth for new models coming onto the market in the next three to five years. We will also want to make add-on acquisitions, with countries such as Germany, France and Asia high on our priority list. After a period of three to seven years, we plan to sell or merge the company with a strategic partner.”

The deal was finalised on November 26, 2002 after having obtained the approvals from the relevant merger-control authorities in countries such as Germany, Sweden and Brazil.

The buyout follows a number of recent deals by ABN AMRO, including June’s £116m secondary buyout acquisition of UK camera and photographic accessories business Jessops. This deal represented a major milestone for ABN AMRO Capital  as it is the firm’s tenth UK investment since it entered the leveraged buyout market there in early 2000.

Inalfa Roof Systems designs, develops and produces a broad range of roof systems through co-engineering with car and truck manufacturers. Clients include major car and truck manufacturers Daimler Chrysler, BMW, Ford, PSA, General Motors, Volvo, Renault/Nissan and Mitsubishi.