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).
