Down2Earth replaces Gimv as majority stakeholder in Grandeco

Down2Earth has bought a 55% stake from Gimv, which previously owned 91% of the company.

The management, with a previous shareholding of around 9%, has increased its stake.

The vendor will remain on board and continue as a significant minority shareholder. 

The GP used its Down 2 Earth Capital II vehicle for the investment and deployed an equity ticket in the region of €8-12m. 

Gimv said that, over the entire period, the investment offered a positive return with only a small impact on the net asset value of Gimv.

The GP, which in 2007 acquired a 91% stake in Grandeco in a carve-out deal from floor covering producer Balta, had been in talks with several potential buyers for more than a year.

Tom Van de Voorde, partner at Gimv, said the GP chose Down2Earth for its expertise, operational focus and their history in the market. 

According to a press statement from Gimv, the deal comes ahead of further sector consolidation; the new GP plans to focus on strategic acquisitions to become a pan-European market leader in decorative wallpaper.

Says Down2Earth partner Alain Keppens: "Grandeco is a market performer in a highly fragmented industry. The company has achieved above-average growth and profitability in recent years. In addition to its strong reputation in analogue printing, the company has a clear advantage in the area of digital printing."

Company
Founded in 1978 in Tielt, Grandeco Wallfashion Group Belgium produces wallpapers at its Belgian production plant and has offices in Belgium, the UK, France, Poland, Russia and Germany. The company has reportedly grown at compound average growth rate of 3.2% in recent years and had revenues of €70m in 2019. It employs 300 staff and exports to 80 countries.

People
Down2Earth Capital – Alain Keppens (partner).
Grandeco – Patrick Molemans (CEO).
Gimv – Tom Van de Voorde (managing partner); Barbara Anst (partner).

Advisers
Vendor – Kumulus (financial due diligence); Stibbe (legal)
Buyer – PKF (financial due diligence); Argo (legal)

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