ST. PETER PORT, Guernsey,
April 28, 2010 /PRNewswire/ --
European Capital Limited ("European Capital") announced today that
it has received proceeds of euro 131
million from the exit of the Spotless Group.
Created in 2005, Spotless Group is a pan-European group of top
household care brands that was majority owned by AXA Private Equity
and employs approximately 300 people. In November 2005, European Capital initially
provided euro 35 million to support
AXA Private Equity's buyout of Eau Ecarlate, a supplier of branded
fabric and home care products to the French retail market. European
Capital's investment took the form of mezzanine bonds and equity.
Subsequent to this initial investment, European Capital invested an
additional euro 63 million in
mezzanine bonds and equity to support several add-on acquisitions
by Spotless Group: the Household Products Division of Guaber, a
supplier of branded fabric, insecticides and home care products in
the Italian market, Punch Industries Group, an Irish manufacturer
of fabric, shoe and home care products, Eparcyl, a French provider
of branded biological activators for septic tanks and Dylon, a UK
provider of branded fabric dyes.
In April 2010, funds advised by BC
Partners purchased Spotless Group. This purchase led to the
repayment of European Capital's mezzanine bonds and to the sale of
our shareholdings, generating proceeds of euro 131 million, representing a 15% annual
mezzanine rate of return and a 21% annual equity rate of return.
European Capital realized a euro 14
million equity gain from the transaction.
"Spotless Group, the first mezzanine transaction of our
Paris office, has been a
remarkable investment for European Capital," said Ira Wagner, President of European Capital
Financial Services. "European Capital has been pleased to partner
with AXA Private Equity in five transactions involving Spotless
Group, representing a cumulated investment of euro 98 million."
"We are pleased to have supported Spotless Group and its
outstanding management team in its ambitious pan-European growth
strategy," said Stephane Legrand,
Director of European Capital Financial Services. "It exemplifies
the long term commitment we customarily make to our portfolio
companies and private equity partners."
"European Capital proved to be a reliable, hands-on and reactive
partner," said Philippe Poletti, AXA
Private Equity Head of LBO Mid Cap Funds. "We appreciated their
ability to support Spotless Group in its acquisitions in various
European countries and in different currencies."
"European Capital's long term, sustained and expert support have
been instrumental in the achievement of Spotless Group's strategic
growth plan," said Pierre Le
Tanneur, Chairman and CEO of Spotless Group. "We valued
their contribution in helping us create this large pan-European
household products group with leading market positions in niche
market segments across Europe."
For more information about European Capital's investment in the
Spotless Group, please go to
http://www.europeancapital.com/our_portfolio/companies/spotless_group.html.
ABOUT EUROPEAN CAPITAL
European Capital is an investment company for pan-European
equity, mezzanine and senior debt investments with euro 1.3 billion in assets under management. It
is managed by European Capital Financial Services (Guernsey)
Limited ("ECFSG" or the "Investment Manager"), a wholly-owned
affiliate of American Capital Ltd.
ABOUT AMERICAN CAPITAL
American Capital Ltd. (Nasdaq: ACAS) is a publicly traded
private equity firm and global asset manager with US$12.7 billion(1) in capital resources under
management. American Capital, both directly and through its asset
management business, originates, underwrites and manages
investments in middle market private equity, leveraged finance,
real estate and structured products. Founded in 1986, American
Capital currently has eight offices in the U.S., Europe and Asia. For further information, please refer to
http://www.americancapital.com.
ABOUT AXA PRIVATE EQUITY
Founded in 1996, AXA Private Equity, an AXA Investment Managers
company, is a diversified private equity firm with US$25 billion of assets managed or advised and
eight offices in Paris,
Frankfurt, London, New
York, Singapore,
Milan, Zurich and Vienna. For further information, please refer
to http://www.axaprivateequity.com.
ABOUT BC PARTNERS
BC Partners is a leading private equity firm with advised funds
of euro 10 billion. Established in
1986, BC Partners has played an active role in developing the
European buy-out market for over 20 years. The firm operates as an
integrated team through offices in Europe and North
America to acquire and develop businesses and create value
in partnership with management. Since inception, BC Partners has
invested in 71 companies with a total enterprise value of
approximately euro 66 billion.
(1) As of December 31, 2009.
This press release contains forward-looking statements. The
statements regarding expected results of European Capital and/or
American Capital are subject to various factors and uncertainties,
including the uncertainties associated with the timing of
transaction closings, changes in interest rates, availability of
transactions, changes in regional, national or international
economic conditions, or changes in the conditions of the industries
in which European Capital and/or American Capital has made
investments.
Contact: European Capital Financial Services Limited
Tel: + 33(0)1-40-68-06-66
Ira Wagner, President
Tristan Parisot, Managing Director
Stephane Legrand, Director
Guillaume Peroz, Investment Director