Carlyle sells oil and gas company after 9 years(2)

The Carlyle Group is in talks over the sale of Groupe Genoyer to CDC Capital Investissement, after around nine years invested in the company, marking another sale in the busy oil and gas sector.

Buyout firm The Carlyle Group is set to sell French pipe manufacturer Groupe Genoyer for an undisclosed sum to CDC Capital Investissement, a French private equity firm.

Genoyer provides piping equipment internationally for the oil, gas, water and petrochemicals industries.

Carlyle bought the business in 1998, which suffered in the first three or four years of the investment culminating in the terrorist attacks on September 11, 2001. The US buyout firm consequently held the investment for longer than planned.

It has turned around and now anticipates turnover in 2007 of over €300 million ($409 million) with 90 percent generated through exports. 

Maurice Genoyer, the founding partner and president of the supervisory board of Genoyer, is also involved in the discussions.

The deal is the latest in a flurry of activity in the oil and gas sector, which for years has been a private equity backwater.

Last year deals in the sector topped $50 billion (€68 billion) for the first time, according to data provider, Dealogic. Yesterday, 21 Central Partners completed the sale of Sud Robinetterie for €50 million and Natural Gas agreed to buy MDU Resources Group for $636 million.

The Carlyle Group is a global private equity firm with $56 billion under management. Carlyle recently exited from PetraPlus and it has Riverstone in its portfolio.

CDC Capital Investissement manages private equity funds totalling over €1.8 billion. It has numerous companies in its portfolio, including restaurant groups Quick, and Frères Blanc.

 
Carlyle declined to comment.