Bregal buys breached Barclays investment

Novem Beteiligungs, a Barclays portfolio company, had been under the trusteeship of a German law firm until its sale.

Bregal Capital, the private equity arm of the Brenninkmeijer family, has acquired Novem Beteiligungs from a trustee of Barclays Private Equity. Terms of the deal were not disclosed.

Novem, which produces high-end decorative interior parts for the automobile industry, was acquired by Barclays in 2008 from the 3i Group and Taros Capital for an undisclosed sum. Shortly afterward, Barclays’ shares in the company were reportedly placed under the trusteeship of Schultze & Braun, a German law firm, due to a breach in Barclays’ loan agreement.

Novem
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Schultze & Braun initiated the sale upon the recovery of the automotive industry, which has improved since slumping in the latter part of the last decade, the firm said in a statement. Novem posted €270 million in revenue through the fiscal year ending March, 2011; 10 percent less than when Barclay’s purchased its 85 percent stake in the company in 2008.

“Novem has had a tremendous development over the last few years, especially when considering the turmoil during the financial crisis,” Dr. Rainer Riggert and Frank Tschentscher, partners at Schultze & Braun, said in a statement.

Barclays and Bregal could not be reached for comment as of press time.

Bregal, formerly Englefield Capital, was purchased by Bregal Investments in 2010. The firm is currently investing its €1 billion third fund, targeting mid-market investments in buyout and development capital. Bregal typically invests between €30 million and €150 million in companies that have an enterprise value in excess of €75 million.