Carlyle in third Euro exit in three months

The global private equity firm has more than doubled its money in selling its stake in a German automotive supplier for €218m.

The Carlyle Group has sold its 37.1 percent stake in German automotive supplier Beru AG to US automotive components maker BorgWarner Inc for €218 million ($280 million).

Ludwigsburg, Germany-headquartered Beru manufactures cold-start products for diesel engines. With a global market share of 40 percent, the company reported sales of approximately €350 million in 2003/4.

The transaction represents a return of more than two times Carlyle’s undisclosed original investment according to a source close to the deal.

Carlyle invested in Beru in 2000 through Carlyle Europe Partners I, the firm’s €1 billion European buyout fund, raised in 1998.

The sale of Beru is the sixth exit from the fund and the third in the last three months. In September, Carlyle sold Honsel International Technologies to Ripplewood Holdings and two weeks ago sold its 50 percent stake in the Riello Group to the Riello family.

Having previously disposed of Andritz, Materis and Le Figaro, the firm has nine remaining investments left in the fund.

Advising Carlyle on the transaction were Citigroup (financial) and Milbank, Tweed, Hadley & McCloy LLP (legal).

The Carlyle Group has more than $18.4 billion under management and since 1987, the firm has invested $11.2 billion of equity in 332 transactions.

The firm is currently in the market raising Carlyle Europe Partners II, a fund with a €2 billion target.