London-headquartered Bridgepoint has agreed to acquire a controlling stake in The Flexitallic Group, a specialist producer of sealing product technology for the oil, gas and energy sectors, from Paris-listed Eurazeo, for €450 million.
Eurazeo’s divestment generated a 2.9x return and a 28 percent IRR, the firm said in a performance statement on Monday. It also generated cash proceeds of €145 million.
Bridgepoint used a €275 million unitranche facility provided through a club deal led by AXA Private Debt, according to a source familiar with the matter. €200 million will be used for the transaction and the remaining €75 million will be used for add-on acquisitions, the source said. It is unclear how much equity was put in.
The transaction, which arose from discussions between Bridgepoint and Eurazeo, is subject to competition clearance and is expected to be completed in July.
Bridgepoint used its €4.84 billion Europe IV, a 2008 vintage, for the transaction, which will be more than 75 percent deployed following the investment. Last month the firm acquired UK dental group Oasis Healthcare £185 million (€218 million, $280 million). It is understood the firm has no immediate plans to come to market as it has still has capital available for new investments, but it may raise a successor fund next year, the source said.
Bridgepoint declined to comment on fundraising.
Flexitallic has benefited from the growth in the oil, gas and nuclear industries in both the developed as well as emerging markets, Bridgepoint said in the statement. The firm believes an additional $117 billion will be invested globally in these sectors in the next five years, equating to a 12 percent annual growth rate. By supporting its geographical and technological expansion, Bridgepoint aims to double the company’s size within five years.
DLA Piper advised Bridgepoint on legal matters, while Arthur D Little and McKinsey performed market due diligence. Deloitte carried out the financial due diligence.