Investcorp, the private equity outfit, has signed an agreement to acquire OREFI Participation, a distributor of industrial parts based in France. OREFI was sold by a group of investors led by PPM Capital, the private equity arm of Prudential, which acquired their stake in 1998 for a purchase price of €80m in a transaction valued at €112m (including undrawn debt facilities).
Financial details of the most recent transaction were not disclosed, but PPM Capital made a good profit on the sale, according to a source familiar with the situation. Observers estimate that the total value of the deal is in the region of €150m.
The transaction, which is subject to approval by the European competition authorities, is expected to close by the end of June 2006.
Since 1998, funds led by PPM Capital have supported 23 add-on acquisitions by OREFI, which currently employs 1,240 staff in France and the Netherlands and generated a turnover of €293.5m in 2005.
Commenting on the transaction, Investcorp managing director Yves Alexandre said: “We are committed to supporting OREFI in its development in France and the Netherlands. In particular, we will look to develop partnerships between OREFI and the industrial supply business of Autodistribution, the company Investcorp acquired in March, which will consolidate a market leadership position.”
PPM Capital was advised by Hawkpoint, with PricewaterhouseCoopers providing vendor due diligence and Landwell fiscal due diligence.