HgCapital buys Raet from CVC

HgCapital bought a majority stake in the company through its HgCapital 7 fund, alongside the management team. The GP's London Stock Exchange-listed investment trust HgCapital Trust will invest a total of around £16.2m alongside HgCapital 7.

Following the transaction, Raet's management will retain a minority stake in the company.

The fresh capital will boost the company's expansion in both Europe and South America through strategic portfolio acquisitions.

The deal marks the fourth investment in payroll and HR-focused businesses for HgCapital. Most recently the GP acquired a stake in Visma in April 2014, P&I in November 2013 and Iris Software in December 2011.

Previous funding
In August 2011, CVC bought a majority stake in Raet from Advent International and Alpinvest Partners, then known as Taros Capital. According to unquote" data, the SBO had an estimated EV of €395m.

In 2003, Taros supported the €315m MBO of Raet from parent company Getronics. Later, in 2007, the GP arranged a €267m recapitalisation for the company.

Company
Headquartered in Amersfoort, in the Netherlands, Raet is an HR service provider, specialising in HR cloud software. The company currently employs a staff of 1,000.

Founded in 1965, the company has a presence in the Netherlands, Belgium, Spain, Argentina, Peru, Chile and Colombia. According to press reports, the business generated turnover of €147m with €47m EBITDA in 2014.

People
HgCapital – Ed Wielechowski (principal); Justin Von Simson (partner).
Raet – Kobe Verdonck (CEO).

Advisers
Equity – Nielen Schuman (corporate finance); White & Case (legal); OC&C (commercial due diligence); Deloitte (financial due diligence).
Company – Rothschild (M&A); KPMG (financial due diligence); Stibbe (legal).

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