Buyout firms target take-private deals
Buyout firms have started a host of take-private agreements with listed companies across Europe to capitalise on buying opportunities.
Barclays Private Equity has offered €15.50 per share for Xetra-listed software services company Computerlinks, which is a 38.9% premium to its market capitalisation of €104m ($161m).
Barclays will rename CSS Computer Security Solutions Erwerbs if the deal is accepted by 75% of shareholders.
This follows an approach by mid-market buyout peer Bridgepoint Partners to UK-listed aircraft component maker Aero Inventory, which had a market capitalisation of £234m.
Separately, DLJ Merchant Banking Partners, the mid-market buyout arm of Credit Suisse, has teamed up with Italian bank Intesa, which has returned to one of its former investments through the agreement, to take Italian bottle top maker Guala Closures private for an enterprise valuation of about €600m, including its net debt of about €300m.
Guala had a market capitalisation of €286m before the deal was announced and earnings before interest, tax, depreciation and amortisation of €66.5m last year on annual revenues of €325.6m.
After the take-private, a source close to the offer said management would be offered 10% to 15% of the company. DLJ and Intesa are offering about half the offer price as equity with Intesa, Unicredit and Natixis arranging the remainder as debt.
Guala was previously owned by BS Private Equity before being acquired by Italian peer Investitori Associati in 2000. Investitori, which had owned 55.5% of Guala along with Intesa holding 11.2%, listed the portfolio company in late 2005 ahead of a final exit in April 2006 through a JP Morgan-led placing.
A source close to the take-privates said mid-market deals for less than €2bn were being done as banks were enthusiastic and prices had fallen since last summer’s highs, which made the premium offered look better on a rolling-12 months basis.
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