Equistone buys majority stake in Kusters Beheer

Harriet Matthews
28 January 2021

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Equistone is to acquire a majority stake in Netherlands-based precision components manufacturer Kusters Beheer.

Following the deal, the managing directors of Kusters Beheer group company Wilting, Geert Ketelaars and Adwin Kannekens, will be appointed as CEO and chief operating officer respectively.

A source close to the situation told Unquote that the deal came about via a structured process led by ING that began in Q3 2020. The deal values Kusters Beheer in the €100-200m range, the same source said.

Unquote sister publication Debtwire reported in October 2020 that potential lenders had expressed concern regarding the company's customer concentration and the industrial sector. The report added that the company reports EBITDA of around €18m.

Equistone is deploying equity via Equistone Europe Partners VI, which held a final close in March 2018 on €2.8bn. The fund deploys equity tickets of €25-150m and invests in lower-mid-market companies with enterprise values of €50-500m.

Partners Group provided debt to support the transaction.

As well as supporting the company's organic growth, Equistone intends to assist the company with expansion via acquisitions, the GP said in a statement.

The same source close to the situation told Unquote that add-ons are likely to be in the Benelux region or in surrounding markets, such as the DACH region. Both smaller and transformational acquisitions are possible, the source said.

Company
Founded in 1973, Kusters Beheer is a precision components manufacturer that comprises six companies: Kusters Precision Parts, Wilting, HFI, Jatec, Visietech Technical Products and TB Precision Parts. The business specialises in mechanical components made from metal and synthetic resin. Its clients inlude companies in the industrial and semiconductor sectors. Kusters Beheer employs 300 staff and is headquartered in Oss.

People
Equistone Partners Europe – Hubert van Wolfswinkel (director); Marc Arens (partner); Julia Lucà (investment director); Philipp Gauß (associate).
Kusters Beheer – Geert Ketelaars (CEO); Adwin Kannekens (COO).

Advisers
Equity – Allen & Overy (legal); PwC (debt advisory, M&A, financial due diligence, tax, commercial due diligence); ERM (ESG due diligence).
Vendor – ING (corporate finance).