In Jun-03 affiliates of CVC Capital Partners (‘CVC’) acquired Danish building materials and DIY products retailer and distributor Danske Traelast A/S in a public tender offer at DKK 171 per share valuing the equity at DKK 4.04bn, including DKK 2.08bn in net debt at 31-Mar-03 the total consideration amounted to DKK 6.12bn. This implied the following multiples for the year ended 31-Dec-02: 41% of turnover (DKK 14.88bn), 6.8x EBITDA (DKK 901m – before DKK 44m in real estate gains -, 6.1% margin), 9.2x EBITA (DKK 669m – before DKK 44m in real estate gains -, 4.5% margin), 10.8x net earnings (DKK 374m), 1.1x net tangible capital employed (DKK 5.73bn). The transaction was financed with DKK 3.56bn in senior debt (3.9x EBITDA), a DKK 1bn revolver and a DKK 892m mezzanine facility (total debt 6.0x EBITDA) and approximately DKK 1.84bn in equity (70/30 debt to equity).
Filed under: Construction Materials
In Apr-01 Alchemy Partners (‘Alchemy’) acquired UK home improvement and building product manufacturer and seller Anglian Group plc in a public tender offer at 250 pence per share valuing the equity at company at £168m. This implied the following multiples for the financial year to 31-Mar-01: 63% of revenues (£266m), 5.6x EBITDA (£30.2m, 11.3% margin), 7.4x EBITA (£22.8m, 8.6% margin).
The transaction was financed with £53.4m in equity (and discounted loan stock) from Alchemy Investment Plan, £0.3m in equity from management, £115m in secured bank loans (3.8x EBITDA) including £35m in mezzanine financing, and a £20m revolver both from WestLB.
EBITDA increased to £35.8m in 2001/02 before dropping back to £34m in 2002/03 due to cuts in the kitchen sale and installation business including the closure of two regions. Before exceptional costs of £1.78m relating to the restructuring of the kitchen operations and the £2.5m in operating losses in the two discontinued regions during 2002/03 EBITDA from continuing operations amounted to £38.2m.
In Jun-03 the company was refinanced. The WestLB credit facility was repaid in full (£109m remaining) and the company had entered into a new £125m senior secured facility (3.3x EBITDA) arranged by Barclays Leveraged Finance and The Royal Bank of Scotland consisting of three terms loans paying between 225bp and 325bp over Libor. This in addition to the £27m cash balance at 29-Mar-03 enabled the company to return up to £30m to Alchemy and management shareholders.
