Cathay makes first investment from Franco-Chinese Fund

Cathay had previously provided Flexitallic with a €10m round of funding in May 2012. The investment was originally meant to be made by the Franco-Chinese Fund, but since the FCPR vehicle had not yet closed at the time, equity was drawn from the Cathay II fund instead.

This latest transaction enabled Cathay to syndicate the investment, splitting it in equal parts between Cathay II and the Franco-Chinese Fund. The deal was arranged internally and didn't require external advisers.

Cathay won the mandate to manage the €150m Franco-Chinese Fund in September 2012. The vehicle is funded in equal parts by French state-backed Caisse des Dépots et Consignations and the China Development Bank.

Previous funding
Flexitallic is majority-owned by Eurazeo PME (formerly OFI Private Equity), which acquired the company in October 2007 for €140m. Axa Private Equity and Capzanine provided mezzanine financing, while Landesbanki and Société Générale provided senior debt. The overall debt arranged for the transaction amounted to €75m.

European Capital invested $7m in unitranche bonds to provide financing for Flexitallic's acquisition of US-based Custom Rubber Products in January this year.

Company
Flexitallic is a Paris-based manufacturer and distributor of high-end sealing solutions. It operates manufacturing plants in the US, Canada, Germany, France, China and the UK.

Flexitallic employs 1,200 people and generates a turnover of more than €200m.

People
Edouard Moinet and Anne-Sophie Roquette worked on the deal for Cathay.

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• Topics
• France
• Expansion
• Industrials
• France
• Cathay Capital
• Eurazeo