Charlesbank to acquire Polyconcept from Investcorp

Financial details of the transaction remain undisclosed as the deal is expected to close in Q3 2016. Investcorp will, however, fully exit the company, the GP confirmed.

The deal also marks the exit of 3i, which co-invested alongside Investcorp in 2005, acquiring a minority stake in the group. 3i said its proceeds from the sale would amount to around £45m. 

Equity for the transaction will be provided by Charlesbank and management, Partners Group and additional investors.

Charlesbank said it would partner with the management team to expand the business globally and build on Investcorp's investment strategy, as well as tap new growth opportunities.

With Investcorp's backing, Polyconcept made four main acquisitions, including Polyconcept (Europe) almost simultaneously with the GP's investment in the group, Leeds in 2005, Bullet Line in 2006, and Trimark in 2011. The company also closed a number of other smaller deals during the holding period.

During ownership, Investcorp worked closely with senior management to transform the business through a series of strategic acquisitions, while expanding into new markets, launching new product categories and implementing operational enhancements, including building a digital presence for the company, the GP told unquote".

Goldman Sachs, RBC Capital Markets and Natixis have committed to provide first lien debt financing for the transaction, and GSO Capital Partners has committed to providing second lien debt.

In May, Reuters had spoken of Investcorp's intention to sell Polyconcept, reporting that the GP was hoping for a valuation in the region of $1.3bn. Polyconcept was then in its second round of bidding and had an EBITDA in the region of $130m, according to the same source.

Previous funding
In July 2000, BC Partners acquired a majority stake in the business from Dutch listed company Hagemeyer alongside the management team.

In May 2005, Investcorp led the €440m secondary buyout of Polyconcept from BC Partners. The group's management held the remaining interest in the company. The deal included €94m of mezzanine debt. Other investors at the time included 3i, while European Capital and ING Group provided mezzanine finance.

Company
Based in Roelofarendsveen, the Netherlands, Polyconcept was formed in 1995 as a result of the merger between Polyflame, Edelman and Euro-Décor. It makes and distributes promotional items such as pens, watches and mugs, as well as decoration.

Polyconcept targets companies ranging from small businesses to global corporations, through a network of advertising distributors. The group is based in Asia, Europe and the US with main offices in France, the Netherlands and Hong Kong.

Polyconcept's most recently disclosed turnover was €670m in 2012; it employs approximately 3,300 people across 35 subsidiaries.

People
Investcorp – Maud Brown (managing director corporate investment).
Charlesbank Capital Partners – Josh Klevens (managing director).

Advisers
Equity – Jefferies Group (corporate finance); Goodwin Procter (legal); PwC (tax).
Vendor – William Blair & Company (corporate finance); Barclays (corporate finance).
Company – Gibson Dunn & Crutcher (legal).

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• Topics
• Benelux
• Buyouts
• Exits
• Industrials
• Benelux
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• BC Partners
• Investcorp
• Secondary buyout