International private equity firm Advent International has completed a €19m bolt-on to its Romanian decorative paints producer Dufa Deutek. The company has acquired Bengoss, a Romanian mortar and core adhesives maker that will enable it to expand into the constructions materials sector. The enlarged business is aiming to generate revenues of €65m in 2009.
This is the second deal Advent has completed in Romania in the last few days. Last week, it backed the buyout of LaborMed Pharma, a manufacturer and distributor of generic pharmaceuticals. LaborMed was founded in 1991 and had expected turnover for 2007 of €29m.
• PIC Close Growth Capital (CGC) has sold Allen & Heath, a designer and manufacturer of audio mixing consoles for professional sound engineers, live sound installations and DJs, based in Penryn near Falmouth, Cornwall to D&M Holdings, a global operating company providing worldwide management and distribution platforms for premium consumer, automotive, commercial and professional audio and video businesses.
Clients include Denon, Marantz, McIntosh Laboratory, Boston Acoustics, Snell Acoustics, Escient, Denon DJ, Calrec Audio, D&M Professional and D&M Premium Sound Solutions, and the company is listed on Tier 1 of the Tokyo Stock Exchange.
This is the first realisation from CGC’s Fund II and represents an IRR of 40% achieved within two years of the initial investment. The price was not disclosed. The vendor’s lawyers were Bond Pearce of Bristol and the financial adviser was Clearwater of Manchester.
• AAC Capital Partners, a Northern European-focused private equity firm has acquired a significant stake in James Dewhurst, a manufacturer of engineered technical textiles. Barclays and HSBC provided debt financing to support the deal.
The company’s owner, the Brierley family, has reduced its stake but remains invested in the business. Dewhurst was established in 1933 and is headquartered in Altham, Lancashire. It is a manufacturer of woven and non-woven textiles and serves markets in many sectors across the world.
In addition to the operations in the UK, the group has facilities in Georgia in the US and in Hungary. It employs 346 people and had sales of £42m in 2007.
• Bank of Scotland Corporate’s Integrated Finance team has provided £80m of debt and equity funding to oil and gas subsea company Integrated Subsea Services (ISS). The funding package has resulted in the bank taking an equity stake in the company, which is forecasting turnover of £150m within three years.
Based in Aberdeen, ISS is an independent provider of diving and remotely operated vehicle (ROV) services to the offshore oil and gas industry. It was founded in 2002 by Ian Herd (managing director) and Bruce Webster (HR director) with funding from Bank of Scotland.
It now has a workforce of over 500 specialist diving personnel and a fleet of 20 ROVs involved in pipeline installations, inspections and repairs, new field installations, observation work and other subsea repair and maintenance.
The transaction was structured and arranged for Bank of Scotland Integrated Finance by John Duncan and Ritchie Clark supported by Angus Allan, David Clark and Barry Leaper. Bank of Scotland was advised by Douglas Crawford and David Morton of Dundas & Wilson (legal) and Martin Findlay of KPMG (tax).