HgCapital Trust plc Regulatory News (HGT)

18 Sep 2008 11:48



HgCapital Trust plc

The following is the text of a press release issued by HgCapital, which manages the investment portfolio of HgCapital Trust plc alongside those of other institutional clients. The Trust, which is a listed investment trust giving investors the opportunity to participate in all of HgCapital's investments, will invest approximately £5.5 million in KVT.

HgCapital and Capvis agree to invest in KVT

Zurich/Munich, 18 September 2008 - Swiss private equity firm Capvis and European private equity investor HgCapital have agreed to become investors in Koenig Verbindungstechnik AG (KVT), the Swiss fastenings and sealing technology products group., Capvis originally acquired KVT Group for € 325 million from Debrunner Koenig Holding AG, a fully owned subsidiary of German listed Klöckner & Co SE, in July.

Under the terms of the agreement Capvis and HgCapital will enjoy equal rights as investors. The transaction is subject to approval by the relevant competition authorities.

KVT is a leading supplier of fastening and sealing technology products. The company sells force fitting fasteners, rivet systems, screw threads, adhesive products, related automation solutions and expanders for hydraulics and automotive applications. KVT's products are primarily used in the engineering, automotive, electronics and transportation industries as well as in the medical engineering, aerospace and construction industries.

KVT manufactures fastenings at its headquarters in Dietikon in Switzerland and operates distribution companies in Germany, Austria, Poland, the Czech Republic and the US. The company employs over 300 people worldwide and generated sales of approximately €120 million in 2007, continuing the strong growth of recent years. Capvis and HgCapital see further growth potential from attracting additional customers, particularly in the global automotive industry.

Michael Bauer from Capvis commented: 

"We are delighted to have found an additional strong partner for KVT in HgCapital, which shares our investment philosophy. Together, we will support KVT's management in its focused international expansion. We are convinced that KVT will extend its market position in existing markets and successfully expand in new markets in the coming years."

Justin von Simson from HgCapital said: 

"KVT is exactly the type of business that HgCapital likes to invest in. It is highly profitable and has above average growth rates and fits within our specialist industrials investment sector. We look forward to working with Capvis to support KVT and its management to accelerate the group's growth following its buyout from the Klöckner Group."

Ends

About Capvis

Capvis is the leading private equity firm in Switzerland and among the market leaders in German-speaking Europe. Capvis invests in well-positioned mid-sized companies with significant operations in Switzerland, Germany or Austria, typically as part of succession solutions and corporate spin-offs. Capvis aims to work together with management to release sustainable business potential and to lead its investment companies to a new level of excellence. Capvis Funds currently total EUR 900 million. Since 1990, the Capvis team has conducted 39 transactions with a volume of more than EUR 3.0 billion. 

For further details, see www.capvis.com. 

About HgCapital

HgCapital is a private-equity investor in the European mid-market. We focus on investments with an enterprise value in the range of € 75 - € 750 million. Our business model combines sector specialisation with dedicated, proactive support to our portfolio companies as well as the application of significant human resource and the corresponding management expertise across all phases of the investment process. HgCapital manages more than € 2.0 billion for some of the world's leading institutional and private investors. Our goal is to achieve outstanding results for our investors, management team and intermediaries.

For further details, see www.hgcapital.com. 

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