Indufin sells Preflex Group to Wienerberger

Oscar Geen
30 August 2017

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Indufin has sold Belgium-based pre-wired pipe and tube manufacturer Preflex Group to Austrian construction materials company Wienerberger for an undisclosed sum.

The transaction ends a 12-year holding period for Indufin, which first acquired the company in a management buy-in with an enterprise value of less than €10m in 2005.

Under Indufin's ownership, the company's revenues almost tripled from €13.2m in 2005 to €33m, with an EBITDA of €3m in 2016.

Indufin originally took a 66% stake in the company along with an external manager but sold 100% on exit, having bought the management out in 2015. The GP had already generated returns through three dividend recaps in 2007, 2012 and 2015.

Preflex has expanded its operations internationally in the past 12 years, acquiring Ledignan-based competitor Qofil in 2009, as well as expanding operations into the Nordic countries, Germany, Spain and the CEE region. The growth, including the acquisition, was funded by debt but the company never exceeded leverage of 3x EBITDA.

The acquirer expects to strengthen its position in the growing market of pre-wired conduits for electrical installations through the transaction.

Wienerberger has a market cap of €2.09bn and generated €404m in EBITDA from €2.9bn in revenues in 2016.

Previous funding
Indufin bought Preflex (then Preflexibel) in a management buy-in in 2005. The transaction value was less than €10m, according to a source close to the situation. Indufin secured a 66% stake in the original buyout and the external manager bought a 33% stake.

Indufin partly realised its investment through dividend recaps in 2007, 2012 and 2016. It bought out the management's 33% stake in 2015.

Company
Preflex was founded as Preflexibel in 1993 in Ninove, Belgium, where it is still headquartered. The company produces 100,000km of pre-wired flexible conduits every year from its production sites in Ninove and Ledignan. It employs 50 people and generated an EBITDA of €3m from €33m in sales in 2016.

People
Indufin – Joris Rome (partner).
Wienerberger – Heimo Scheuch (CEO).
Preflex Group – Peter Delbecque (CEO).