Aurelius books 9x on denim disposal

The German-listed firm acquired the denim fabric producer Tavex Europe a year ago through a complex carve-out transaction.

German-listed private equity company Aurelius has agreed to sell its stake in Tavex Europe to a Spanish consortium of investors just 12 months after acquiring it, according to a statement from the firm.

Financial details were not disclosed, but it is understood that the transaction generated a 9x return for the firm.

Aurelius agreed to acquire Tavex Europe, the European unit of Brazilian corporate Grupo Tavex, in February 2015, and the transaction completed on 30 April. Headquartered in Bergara, Spain, Tavex Europe develops, produces and distributes sustainably developed denim fabric for fashion brands in Europe.

During its ownership, Aurelius introduced sustainable corporate structures, processes and cost structures, and commenced several growth initiatives, most of which have already been implemented, the firm said.

One growth initiative was the expansion of the product range into new fabrics in the area of comfort wear and ladies fashion. The company also developed a variety of new products targeted at the central and northern European markets.

Aurelius invests across Europe in companies with revenues of between €30 million and €750 million, looking to invest between €5 million and €50 million of equity per deal. The firm operates from offices in Munich, London, Stockholm and Madrid, and is currently invested in 25 businesses.

The firm is listed on the Munich stock exchange and has a market capitalisation of €1.65 billion.