Candover and NIB Capital have sold their equity holding in European heating company Baxi Group to BC Partners as part of a refinancing. The refinancing values the company at £662.5m. The sale of the Baxi group means the Candover 1991 and 1994 fund portfolios are now fully realised.
Candover first invested in the Baxi Group in 1996 when it led the £360m buyout of 15 businesses from Williams Holdings to create Newmond. Alpinvest Holding and Electra Fleming also acquired stakes in the business. Electra Investment Trust has also committed to reinvest in the group. In 2000, Candover backed Newmond in its acquisition of Baxi Holdings to create the Baxi Group. The business employs over 5,500 staff throughout Europe and had a turnover of €1bn (£657m) in 2002. New bank finance has been arranged and provided by Royal Bank of Scotland, which has been a shareholder in and banker to the group for the last seven years.
Marek Gumienny, Candover managing director, said: “Baxi has been a successful and long standing investment for Candover and its sale is the latest in a series of realisations made by Candover in the last 12 months.”