The institutions which backed a 1993 buyout of Hygiene Diffusion, a leasing French manufacturer of adult incontinence products, have sold the company in a FFr 576 million (ecu 87 million) MBO led by Electra Fleming.
Hygiene Diffusion, which turned over FFr 555 million in 1997, has a 28% share of the adult incontinence protection market in France and is also a substantial exporter, selling 37% of its output in overseas markets. The company also manufactures babies’ nappies, which currently account for 10% of sales.
Management reinvested substantially in this buyout and has increased its holding to 33% from 22%. Electra Fleming is the sole institutional equity holder. Equity comprised 40% of the total funding for the deal.
Intermediate Capital Group provided a mezzanine tranche, accounting for around 20% of transaction value.
Bank of Scotland and Robert Fleming provided the senior debt package.
Parindev, managed by Electra Fleming & Associes, held a small stake in Hygiene Diffusion prior to this latest buyout. The selling shareholders were led by TCR Europe and Alpha Associes.