HgCapital Trust plc Regulatory News (HGT)

26 Sep 2007 07:03

HG Capital Trust PLC26 September 2007 The following is the text of a press release issued by HgCapital, which managesthe investment portfolio of HgCapital Trust plc alongside those of otherinstitutional clients. The Trust, which is a listed investment trust givinginvestors the opportunity to participate in all of HgCapital's investments, willinvest approximately €15.6 million (£10.5 million) in FABORY (formally known asBorstlap "Masters in Fasteners" Group). HgCapital acquires FABORY for €345 million Amsterdam, 26 September, 2007: HgCapital, the European sector-focused privateequity investor, has agreed to acquire FABORY from AAC Capital Partners(formerly ABN AMRO Capital) for a consideration of €345 million. FABORY, formally known as Borstlap "Masters in Fasteners" Group, was founded in1947 and is headquartered in Tilburg in the South of The Netherlands. It is theleading distributor of industrial fasteners such as bolts, nuts, screws, pinsand nails in the Benelux region. The company also distributes chemical fasteners(tape, adhesives, sealants) and power tools. It has operations in France,Central and Eastern Europe, Germany, North America and China. Overall, thecompany operates in 14 countries with 1,800 employees. Worldwide more than120,000 customers are serviced in over 20 territories, with currently a majorityof sales in the Benelux region. Its FABORY Centres (FCs) - abusiness-to-business convenience retail concept specialising in fasteners - givethe company a unique market position, offering the repair and maintenanceprofessional unparalleled choice and service. FABORY has enjoyed strong growth in recent years under AAC ownership, expandingthe number of FCs from 50 to 89 and transitioning successfully from afamily-owned business to institutional ownership. HgCapital will support themanagement team in implementing an aggressive roll-out of further FCs with afocus on expansion into the high-growth markets of Central and Eastern Europe. This will be the fifth investment in the Benelux region for HgCapital, whichopened a local office in Amsterdam two years ago and, as a specialisedvalue-added services provider, FABORY will form part of HgCapital's BusinessServices portfolio. The deal follows on from the acquisition of Mondo Mineralsearlier this month and brings the number of transactions HgCapital has conductedsince the end of June to six. Financing for the transaction was provided by Bank of Scotland. Alex Shivananda, Managing Director of HgCapital Benelux, said: "We have been following the progress of FABORY closely for nearly four years.Alfons, the CEO, and his team have performed very well in professionalising andrepositioning the business and we couldn't fail to be impressed. Accordingly weare willing to pay a good price for a great business. With our pan-Europeancoverage and local presence we are well-positioned to support FABORY's excitingplans for geographical expansion". Alfons van der Aa, Chief Executive of FABORY, commented: "Over the last years we streamlined the business and re-positioned the companywith a highly scalable and successful B2B convenience retail concept. We arelooking forward to taking the company to the next level with the full support ofHgCapital". The transaction is subject to works council consultation and the relevantcompetition authorities' clearance procedures. HgCapital is in advancednegotiations on the acquisition and the parties expect to close the transactionin the next month. Contacts:HgCapitalAlex Shivananda Tel: +31 (0)20 572 7140 MaitlandSuzanne Bartch Tel: +44 (0)20 7379 5151 Financial Dynamics (For AAC Capital Partners)Fergus Wheeler/Lucy Kelly Tel: +44 (0) 20 7831 3113 HgCapital was advised by:Financial & tax DeloitteLegal LinklatersCommercial OC&C Strategy ConsultantsCorporate Finance NIBC Corporate Finance About HgCapital HgCapital is a private-equity investor in the European mid-market. We focus oninvestments with an enterprise value in the range of €75-500 million. Ourbusiness model combines sector specialisation with dedicated, pro-active supportto our portfolio companies as well as the corresponding management expertiseacross all phases of the investment process. HgCapital manages more than €2.7billion for some of the world's leading institutional and private investors. Ourgoal is to achieve outstanding results for our investors, management team andintermediaries. Further information on HgCapital can be found at www.hgcapital.com. This information is provided by RNS The company news service from the London Stock Exchange