Pan-European buyout house Cinven has agreed to sell German-headquartered residential and technical lighting provider SLV Group to Paris-headquartered Ardian, according to a statement from the firm.
Financial details of the transaction were not disclosed, but a market source indicated that the total consideration for Cinven was more than €800 million.
The sale will generate a return of more than 2x for investors in the Fourth Cinven Fund, it is understood.
Cinven acquired SLV in May 2011 from HgCapital and the company’s founders. The investment opportunity was identified by the firm’s industrials and German teams, but its portfolio team in Asia was also “integrally involved in assessing the transaction”, focusing on SLV’s Asian supplier network and sourcing strategies.
Under Cinven’s ownership, SLV has completed add-on acquisitions in Switzerland, the Netherlands and Denmark, and has generated an increase in sales of around 40 percent, according to the statement.
When The Fourth Cinven Fund closed on its €6.5 billion hard-cap – significantly above its €5 billion target – after just six months in June of 2006, it was the largest fund ever raised dedicated to European buyouts. As at 31 March 2016, the vehicle was delivering a return multiple of 1.4x and an internal rate of return of 6.83 percent, according to Washington State Investment Board.
This is Cinven’s second sale of an industrials business in the last few weeks, following the agreement to sell Italy-headquartered space launchers and space propulsion operator Avio Space Propulsion to Space2 and Leonardo-Finmeccanica.
Earlier this month Cinven teamed up with CVC Capital Partners to acquired UK credit card business NewDay from alternatives firm Värde Partners in a deal valuing the business at around £1 billion, as reported by Private Equity International. Just days later the firm announced it had clubbed together with Permira and Mid Europa to acquire Polish online marketplace Allegro Group for $3.253 billion.
In June Cinven closed its latest buyout vehicle, The Sixth Cinven Fund, on €7 billion after just four months in market. The fund, which is considerably larger than its 2012-vintage, €5.3 billion predecessor, had a re-up rate of more than 90 percent, as reported by PEI.