Navis to exit Linatex for $200m

Navis Capital Partners, a private equity firm focused on buyouts in South and Southeast Asia, has agreed to sell Linatex, a specialty rubber business headquartered in Malaysia, to The Weir Group for a consideration of $172.5 million.

In addition, the transaction will also see The Weir Group assume about $27.7 million of Linatex’s debt and other liabilities, Navis said in a statement.

Navis acquired Linatex from London Stock Exchange-listed Elementis for $30.8 million in November 2005. The exit will provide Navis with a return of about 6x including dividends, according to an LP in Navis' fund. 

Linatex provides a variety of water-resistant products such as rubber sheets, moulded products, hoses and process equipment to the mining and sand and aggregates industries. 

Navis had made the investment in Linatex from its funds IV and V, which closed on $315 million and more than $1 billion in 2004 and 2007 respectively. 

Earlier this month, the private equity firm made an offer to acquire all the shares of Singapore-listed Eng Kong Holdings, a logistics and integrated container services company, for S$77.4 million (€44.9 million; $55.2 million).

Navis is currently in the market for Navis Asia Fund VI. The firm originally had a $1.25 billion target, sources told PEI Asia, but it subsequently lowered its target to $1 billion. According to one source, Navis has already raised more than $1 billion and is likely to close the fund within a month. Navis declined to comment on fundraising.