EQT Partners’ portfolio company Sanitec has begun renegotiating its financial structure with lenders following a default on loan repayments.
|Sanitec: talking to lenders|
The mid-market Nordic buyout firm has offered to inject a further €100 million of equity into Sanitec, a designer and manufacturer of bathrooms, provided the company’s lenders reduce its debt from €850 million to €350 million, according to a source close to the situation.
“Sanitec is a profitable company with EBITDA of more than €100 million in 2008 and a strong cash position, but the current financing structure has to be changed as a result of the harsh economic climate,” a spokesman for EQT said.
EQT acquired Sanitec in February 2005 on behalf of EQT IV Fund from UK-headquartered private equity firm BC Partners.
The restructuring of Sanitec is the first visible instance of EQT suffering from the global financial crisis.
The firm had a productive 2008, making several investments – most recently the €269 billion acquisition of Danish IT business KMD – and achieving the successful exit of German Hoist company Pfaff Beteiligungs for €36 million.
As well as closing its debut infrastructure fund ahead of its €1 billion target in November, the firm also made two high profile hires. It hired ex-partner at IK Investment Partners Thomas Ramsay to spearhead its activity in the country and Piotr Czapski, the former head of McKinsey & Co’s Eastern European operations, to lead the its new Warsaw office.