N+1 buys Probos from Explorer

The GP invested from its N+1 Private Equity Fund II, alongside its listed evergreen fund Dinamia Capital Privado, which has paid in the region of €12m to take a stake of around 25%. Probos's management, led by María Conceição Gomes, also invested. N+1 PEF II and Dinamina have a co-investment agreement in place for every deal done by the GP.

N+1 won the deal in an exclusive auction. The company plans to consolidate its position in its core markets, while pushing for international growth and penetrating new markets.

Debt
The company has a capital structure of 60% equity and 40% debt; existing facilities were rolled over as part of the deal. 

Previous funding
Probos was bought by Explorer in 2008. The company was said to have grown strongly during the holding period in emerging markets such as Brazil, Mexico, Colombia and Russia. The business generated 45% of its 2012 revenues in Latin America. 

Company
Probos was founded in 1977 and makes plastic edge bands for the furniture industry, which it is able to tailor to furniture makers' designs.

The business distributes its products under the Proadec trademark and reported revenues of close to €58m in 2012. Probos derived almost 90% of its revenue from exports, which it negotiates through its in-house sales network and third-party distribution agreements. The group has two manufacturing facilities in Portugal and Brazil as well as a direct sales presence in Mexico, the UK and Germany. It currently employs 400 people.

People
Marco Lebre worked on the deal for Explorer, alongside Ignacio Moreno, David Santos, Fernando Ortega and Jaime Codorníu who represented N+1.

Advisers
Equity - PwC (M&A); KPMG (Financial due diligence); At Kearney (Commercial due diligence); Uría (Legal).
Company - BESI (M&A); Deloitte (Financial due diligence); BCG (Commercial due diligence); CMS Rui Pena & Arnaut (Legal).

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