IK doubles money on construction group

Barclays Private Equity has bought French construction equipment company Laho in a secondary buyout.

Industri Kapital, the European mid-market buyout house with Nordic roots, has sold portfolio company Laho to Barclays Private Equity for a transaction value of €110 million.
 
Laho is a French construction equipment rental group which employs 650 people and has revenues of €115 million. IK acquired an 80 percent stake in the company for a price of €30.9 million in June 2000; management held the remainder.
 
IK's strategy for Laho has involved refocusing on its rental activities and divesting its distribution business. According to a statement, the company's EBITDA doubled during the period of the firm’s ownership, and it has increased its number of outlets from 72 to 110.
 
A senior partner at the firm said that it received proceeds of €62.7 million from the sale, representing a 2x money multiple and an IRR of 16 percent.
 
This is IK's third realisation in France. Last year it sold engineering group Fives-Lille to Barclays. It also sold Labeyrie, a supplier of smoked salmon and foie gras, to food producer SIF. The firm still owns two companies in the country.
 
The IK2000 fund has now returned around 52 percent of the €1.9 billion it has invested, according to a letter sent to investors. It still holds 12 companies in its portfolio.
 
Barclays Private Equity is a London-based firm owned by Barclays Bank and specialising in European MBOs. It is currently investing its second European fund, which held a €1.65 billion final close in 2004. The firm is highly active in France, where it has a team of 11 professionals and has done over 70 deals.
 
BPE said in a statement that it would continue the strategy of pursuing both internal and external growth for the company.