Dutch DIY deal for CVC

CVC Capital Partners announced it has acquired Cementbouw Handel & Industrie from Amstelland in a E862 million deal. ABN AMRO, CIBC and ING provided debt facilities, the details of which were not disclosed.

Cementbouw Handel & Industrie, previously family-owned, was acquired by Amstelland in 1995. It employs 4,100 staff and operates 53 retail DIY stores in the Netherlands under the names Gamma and Karwei. The company manufactures and transports building products and materials, it also supplies them wholesale to the building industry. The current management will remain in place.

When Amstelland announced its plans to sell Cementbouw Handel & Industrie to CVC in March this year the price mentioned was E908 million. However, in May the price was lowered to reflect a downturn in the Dutch building industry. Amstelland sold the unit as part of a plan to divest non-core activities. In September 2000 the company sold it’s NBM construction and civil engineering businesses to Royal BAM Group. Following this sale it will continue to operate in the construction industry, concentrating on it’s remaining activities in property development.

Michael Smith, chairman of CVC, said: “Cementbouw’s leading position in the Dutch building materials market provides a platform for us to work with management to build the business through acquisition in the fragmented wholesale and retail sectors, where we see significant consolidation opportunities.”

CVC’s other acquisitions in similar industries include Armacell (manufactures and distributes thermal insulation products, acquired May 2000), Amatek/Formica (building products, acquired April 1998) and most recently the E890 million Lafarge Specialty Building Products deal. CVC believes these transactions have provided it with a deep knowledge of the market and it will continue to look for similar opportunities in other countries.

PriceWaterhouseCoopers and Freshfields advised CVC on the transaction.

Also this month CVC announced the close of its E4.65 billion fund, CVC European Equity Partners III.