Deals round-up – Secondary buyout for HMY

In what technically amounts to a secondary buyout NatWest Equity Partners and UBS Capital have together increased their equity stakes in HMY, a leading display shelving and check out exit installations business. Both NatWest Equity Partners and UBS Capital have held stakes in HMY since taking part in an Electra-led MBO in 1996. The value of this transaction was around $42 million (39 million). This 1996 management buyout was done through the French company Hermes Metal. Hermes Metal later became HMY when it merged two years later in 1998 with Yudigar, the Spanish display shelving company. This merger agreement was announced late 1998 but was not concluded until the following year.

Since this merger the newly formed HMY group has targeted its expansion plans across Europe and into Latin America – principally Brazil where it opened a factory and now has five commercial subsidiaries from which it serves south America.

The technical secondary buyout involved a significant capital restructuring with the company receiving an additional Ff2 billion (307 million) in debt and equity investment. New equity came from the step up in NatWest Equity Partners and UBS Capital’s interest in the company and debt was refinanced by Credit Suisse First Boston when mezzanine provider Intermediate Capital Group placed new mezzanine in the financial structure.

NatWest Equity Partners, UBS Capital and Intermediate Capital Group were advised by Bain & Company for the strategic audit, KPMG for the financial audit and Wilkie Farr & Gallagher for legal and tax matters. Electra was advised by PricewaterhouseCoopers in the sale of its equity stake in HMY and Ashurst Morris Crisp was the firm’s legal adviser. Olivier Tordjman was appointed by Credit Suisse First Boston to provide advice on the debt and mezzanine financing.