CVC Capital Partners has completed Spain’s largest secondary buyout with the €527 million purchase of metal packaging firm Mivisa from Spain’s Suala Capital and PAI Partners of France.
In a statement, Suala said it had received total proceeds from the deal of €178 million – including those from a leveraged recapitalisation in March 2004 – compared with the €39 million it invested in the original buyout of Mivisa in December 2001. The firm said this represented an internal rate of return (IRR) of 65 percent and a 4.5 times return on investment.
Suala and PAI teamed up to each acquire 50 percent of the business in 2001 for €280 million. A €253 million recapitalisation last year resulted in 84 percent of the firms’ equity commitment being returned to investors.
At the end of 2004, Mivisa had revenues of approximately €308 million, EBITDA of €62 million and net debt of €215 million.
Founded in 1973, Mivisa is a manufacturer of metal food cans. Headquartered in Murcia, the firm five manufacturing plants in Spain and around 1,700 employees. Around 45 percent of its produce is exported – mostly to France and Portugal.
Suala Capital Partners, set up in 2001, is one of the largest private equity funds in Spain, with total funds under management of €215 million. PAI Partners made its original investment from PAI Europe III, a €1.8 billion leveraged buyout fund closed in September 2002.
Debt finance for the buyout of Mivisa was provided by a bank consortium led by Credit Lyonnais, Banesto and Barclays Capital. The recapitalisation of the business was co-arranged by BNP Paribas and The Royal Bank of Scotland.
CVC is currently investing CVC European Equity Partners III, its $4 billion 2001 vintage fund.
In a separate development, it was announced today that CVC’s attempt to buy Swiss manufacturing group Forbo had failed. The bid, worth around $585 million, foundered in the face of a successful campaign by former Forbo board member Michael Pieper to retain the firm’s independence.