London-headquartered TDR Capital has agreed to sell the European division of VPS Holdings, a security provider for empty homes and properties, to Paris-based PAI Partners, according to a statement.
Financial details of the transaction were not disclosed, but a source close to the matter said the enterprise value was £160 million (€200 million, $271 million) which is approximately 8.5x the company’s EBITDA.
TDR’s precise return was unclear. But with the sale of VPS’s European division, TDR will already have earned back its £150 million investment in the entire business, which it acquired in 2010.
TDR and PAI declined to comment beyond the statement.
VPS’s senior management team will continue to lead the company and will reinvest alongside PAI in the deal, which is expected to close next month.
VPS provides security solutions, such as property alarms, motion triggered video, CCTV systems and security screens, doors, together with specialist property management services, such as facility services, and guard services. The business operates in the UK, France and The Netherlands and has a growing presence in Germany, Ireland, Italy and Spain.
The investment in VPS marks PAI’s fifth investment from PAI Europe VI, which is gearing up for a €2.5 billion second close this summer, as it looks to raise €3 billion.
Earlier this month, PAI entered exclusive negotiations with Paris-based LBO France and French corporate Lur Berri to acquire Labeyrie Fine Foods (LFF), a French food business. PAI is also in exclusive talks to acquire the shareholders of DomusVi, a French nursing business.
In April, PAI agreed to acquire a majority stake in Euro Media Group (EMG), a production business based in France, for just under €200 million. In the same month, PAI and The Carlyle Group entered into exclusive talks with French-based Schneider Electric to acquire its business unit Custom Sensors & Technologies. The pair will pay about $900 million for a majority stake in the business, PEI reported at the time.