Private Equity News & Analysis

Halder books €80m profit in German secondary

GIMV’s Halder has sold German PVC window profile manufacturer Gealan to AXA Private Equity for in undisclosed sum.

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Halder, the Germany-based subsidiary of Belgian private equity firm GIMV, has agreed to sell its stake in German PVC window profile manufacturer Gealan to several funds advised by AXA Private Equity.

Gealan's management, which previously held a stake of around 10 percent, will increase its holding following the transaction.

The value of the transaction was not disclosed, although GIMV said it had realised a net capital gain of €79 million on its investment. The firm will reinvest an amount significantly smaller than its original investment in exchange for a 10 percent stake in company.

Gealan is headquartered in Bavaria and produces PVC window systems for the French, German, Benelux and Eastern European markets. Its production subsidiaries operate in Romania, Poland and Lithuania, a distribution subsidiary in Croatia.
 
According to a press release, the company has grown significantly in recent years, with turnover increasing from €78 million in 2001 to €122 million last year, thanks to strong demand in Eastern Europe.
 
Halder Germany lead an MBO of the company in May 2002. Frank De Leenheer, GIMV's investor relations manager, declined to disclose how much equity the firm invested in the buyout. Originally Halder had earmarked €30 million, De Leenheer said, but ultimately the firm invested less than said.
 
 The transaction, which is subject to approval by the German anti-trust authorities, raises GIMV's net asset value by €34.6 million, or €1.49 per share, the firm said. This brings its current net asset value to €43.15 per share.
 
GIMV invests in information and communication technology and life sciences, and in growth financing and MBOs in the European market. It manages more than €1.2 billion, and has been listed on the Euronext stock exchange in Brussels since 1997.
 
AXA Private Equity has offices in Paris, Frankfurt, London, New York and Singapore, and managed or advises funds with combined assets of more than €6.5 billion.
 
The acquisition of Gealan is the fifteenth investment by AXA Private Equity Fund II, a €400 million fund launched in 2001 that is currently over 70 percent invested.