SigmaKalon

Exit deal

Bain Capital portfolio company SigmaKalon has raised nearly E1.4bn. Bain has led the E1.367bn recapitalisation of the E779m loan arranged by CSFB and SG, which helped support Bain Capital's buyout of the company in 2003. The loan was extended by a further E100m a year later. After taking E150m out of the business last year, the private equity house is now undertaking a full-scale recapitalisation. Mandated arrangers ING, Merrill Lynch and HSBC, have underwritten a E1.6bn senior debt package, including a E150m revolving credit facility, a E150m borrowing base facility and a E200m acquisitions facility for further build-up. The debt package also includes a E75m second-lien facility and E132m of mezzanine financing.SigmaKalon manufactures and distributes decorative paints to trade professionals through its own network of 400 outlets, as well as to consumers via DIY shops and independent sellers. The company also has a major presence in the marine and protective coatings segment of the market. The company, which currently employs around 10,400 staff in 40 countries, was formed following the 1999 merger between Total and Elf. It achieved total revenues of E1.7bn in 2004 and is a market leader in the Netherlands, France and the UK. Since its acquisition by Bain Capital, the company has built up its position in Eastern Europe through its buy-and-build strategy and has become a leader in Poland, Hungary and the Czech Republic. SigmaKalon is co-headquartered in Amsterdam and Paris.

Previous funding

Bain Capital carved out SigmaKalon from Atofina, the chemicals division of the Franco-Belgian oil and gas group TotalFinaElf in February 2003 in a E1bn buyout. The divestment was part of a E1.5bn non-core asset disposal programme launched by Atofina in 2000 that was planned to complete in 2003. Bain Capital outbid a number of financial contenders in auction to acquire SigmaKalon including Industri Kapital, Goldman Sachs, PAI partners, Candover and Permira.The deal package that was put into place by CSFB and SG at the time of the acquisition comprises a E200m seven-year amortising term loan A at 225bps over Euribor, a E150m eight-year bullet term loan B at 275bps over Euribor, a E150m nine-year bullet term loan C at 352bps over Euribor, a E120m seven-year revolver at 225bp over Euribor, a E24m seven-year amortising restructuring facility at 250bps over Euribor and a E45m seven-year amortising minority interest facility at 250bps over Libor. There is also E100m in mezzanine debt.Walid Sarkis led the deal on behalf of Bain Capital. Rob Pulford and Fabrice Damien led the recapitalisation at Merrill Lynch. Pierre Chabrelie was representing ING and Bernard Boué and Stéphane Derouvroy were working for HSBC CCF. Pierre-Marie de Leener is CEO of SigmaKalon.

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