Carlyle Europe completes Andritz exit

Carlyle Group has made the second investment from its Carlyle Europe Partners fund, more than doubling the original E48m investment made in 1999.

( US private equity house Carlyle Group has completed an exit from its Carlyle Europe Partners fund by selling its stake in manufacturer Andritz AG on the Vienna Stock Exchange for approximately E139m, netting the firm a 22 per cent IRR on the investment.


Andritz is a manufacturer of production systems and services for the pulp, paper, steel and other special industries. Carlyle originally acquired the company in 1999 with a group of investors including Unternehmens Invest AG, GE Capital and Custos Privatstiftung. Carlyle invested nearly E48m of equity in the transaction.


As part of the same transaction, Deutsche Beteiligungs said it had sold 82 per cent of its stake in the business. Deutsche Beteiligungs held a 6.4 per cent stake in the company.


In 2001, the consortium floated 15 per cent of Andritz’s shares on the Vienna market. Yesterdays offering of 6.1m shares at E22.75 per share brought the public float to nearly 62 per cent.


“This investment has been very successful for Carlyle and we are very pleased to be able to give back capital to our investors at an attractive return in line with expectations,” Heiner Rutt, managing director of Carlyle Europe, said in the statement.


There was solid demand for the shares from Austrian and other international institutional investors. The share placement was led by CA and JP Morgan, with Erste Bank serving as co-manager for the offering. Carlyle and other financial investors retain a ten per cent stake in Andritz.


Carlyle’s E1bn European buyout fund, Carlyle Europe Partners, was launched in 1998 and now holds investments in 17 portfolio companies.