London-headquartered Permira has entered into an agreement to acquire liquid and solid containment company BakerCorp for $960 million.
Founded in 1942, BakerCorp is the largest containment, pumping, filtration and trench shoring solutions provider in the US with more than 100 locations throughout North America, Europe and Canada, according to a statement. The company’s products are used by customers in the industrial services, refining, oil and gas, environmental remediation, power, municipal and construction end markets. The investment comes from Permira’s fourth global buyout fund, which closed on €9.6 billion in 2006.
The Permira funds were advised by Morgan Stanley and Deutsche Bank Securities. The transaction is expected to close by July 2011.
In February, listed fund of funds SVG Capital – whose £1 billion-plus (€1.3 billion; $1.6 billion) private equity funds portfolio is primarily composed of Permira funds – gave Permira a glowing review in its latest earnings statement. Reporting a 41.7 percent increase in net asset value and a number of measures taken to improve its balance sheet, SVG highlighted a “strong recovery in the operational performance” of Permira portfolio companies throughout 2010.
Permira has previously invested in a variety of industrial companies, such as chemicals group Cognis, which it sold to German chemical conglomerate BASF for €3.1 billion last June, generating a 3x return.
Permira currently advises funds with a total committed capital of approximately €20 billion.