Sun European invests in Sports & Leisure Group

Sun European will invest alongside management. Financial terms of the transaction were not disclosed.

Rothschild was mandated to review strategic options for the company in early 2021, according to a report by Belgian publication De Tijd that added that SLG could change hands for more than EUR 250m.

In June, the same publication reported that SLG was being eyed by Belgium-based carpet and flooring manufacturer Beaulieu International Group and several unnamed investment funds.

Sun European noted that SLG operates in an "attractive and rapidly growing" market, supported by increased adoption of artificial grass systems across the sports, landscaping and leisure end-markets.

The GP said it would aim to help the group grow organically as well as through selective acquisitions across geographies, building on past acquisitions including Limonta Sport.

Sun European made three investments in Europe in 2020: CNC Holding, a producer of substrate for mushroom cultivation; glass bottles and containers manufacturer Allied Glass Containers; and visual signalling and safety products manufacturer WesCom Signal.

Sun Capital Partners VII was 50% deployed prior to the SLG deal, following its final close on USD 2.3bn in July 2019.

So far this year, the GP has been more active on the divestment side. The firm notably sold mattress retailer Dreams for USD 475m and most recently sold bedroom furniture producer Sharps to Epiris, ending a 10-year holding period.

Previous funding
Chequers bought SLG from industrial group Domo Gent Industries in 2017. Prior to Chequers' acquisition, Domo Gent Industries owned 75% of the company, with the balance held by company CEO John Penninck. Chequers invested via the Chequers Capital XVI fund, which closed on EUR 850m in 2011, according to Unquote Data.

Company
Headquartered in Sint-Niklaas, Belgium, SLG produces artificial turf used in several end markets. For sport applications, SLG notably owns the Domo Sports Grass and Limonta Sport brands.

The company aims to produce environmentally friendly artificial grass, with a focus on end-of-life recycling and an R&D programme to find new sustainable artificial grass systems.

SLG serves around 90 countries with four production sites across three continents. According to De Tijd, SLG's expected revenues last year came to around EUR 160m, with a gross operating profit of slightly less than EUR 30m.

People
Sun European Partners – Mark Corbidge (managing director).

Advisers
Equity – Lincoln (M&A, debt advisory); McKinsey (commercial due diligence); Deloitte (financial due diligence, tax); Weil Gotshal & Manges (legal).
Vendors – Rothschild & Co (M&A); Roland Berger (commercial due diligence); KPMG (financial due diligence, tax); Allen & Overy (legal); Eubelius (legal).

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• Topics
• Buyouts
• Benelux
• Industrials
• Sun European Partners
• Belgium