3i completes single-asset restructuring for Action

Following the restructuring, Partners Group sold its stake in Action, which it acquired in 2011, to Hellman & Friedman for €1bn.

The exit deal value and restructuring are based on an enterprise value of €10.25bn, amounting to a net multiple of 20.3x EBITDA for the year ending in September 2019.

3i acquired a majority stake in Action in 2011 via an MBO, with a reported value of €500m. The firm deployed capital of £134m from its 2006-vintage vehicle Eurofund V. The fund is reaching the end of its lifespan and Action was its final remaining portfolio company.

3i will own a direct stake in Action of around 50% following the restructuring, investing from its own balance sheet. The remainder of the stake has been transferred to 3i 2020 Co-investment vehicles, which are backed by 3i, pre-existing LP investors and new institutional investors. 3i will own or manage an approximately 80% stake in Action in total.

Action will complete a senior €625m refinancing which, combined with surplus cash in the business, will generate a total distribution of approximately €745m to all pre-sale shareholders.

The returns amount to a gross 31.3x money multiple and 75% gross IRR since 2011.

Company
Founded in 1993, Action is a discount non-food retailer based in Zwaagdijk-Oost. It has 1,473 stores across seven countries and employed around 46,000 staff in 2018.

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