Cinven to sell Tractel to trade for EUR 500m

Wahida Ahmed
03 August 2022

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Cinven is set to exit Luxembourg-based Tractel via a sale to industrial equipment supplier Alimak Group that values the working-at-height specialist at EUR 500m.

The price corresponds to an EV/EBITDA multiple of 10.3x based on Tractel's EBITDA in the year ended on 30 June, according to a press release by the Stockholm-listed buyer.

Following the completion of the deal, Alimak will create a provider of premium height solutions and services with annual revenue of EUR 570m (SEK 6bn). The acquisition adds a new vertical to the group within height safety and productivity tools.

The deal will be financed through a long-term facility of EUR 300m and a bridge loan facility from Svenska Handelsbanken, according to the press release. After completion, the bridge loan facility is intended to be repaid with proceeds from a rights issue of approximately SEK 2.5bn.

Cinven invested in Tractel in 2015 through its Fifth Cinven Fund, in a deal that saw preview owners, LBO France, reap 2x money, according to Unquote Data.

Under the GP's ownership, Tractel completed two bolt-on acquisitions in the US and in the Nordics and expanded internationally, particularly through growth in the US and the Nordics.

The company's revenue grew by 7% amounting to EUR 201m, with an EBITDA margin of 24%, for the year ended on 30 June 2022.

Cinven is deploying equity through vehicles including Cinven Strategic Financials Fund, which held a final close on EUR 1.5bn in July 2022. The fund adopts a new strategy that focuses on the European financial services industry, particularly areas including life and non-life insurance and wealth management, according to Unquote Data. Cinven's Seventh Fund a final close in May 2019 on EUR 8bn and targets companies operating in sectors including business services, consumer, financial services, healthcare, industrials and TMT, across western Europe and some North American companies, according to Unquote Data.

Company
Founded in 1941, Tractel produces height safety equipment for the industrial, construction, energy, telecommunications and infrastructure sectors. It has subsidiaries in 19 countries and factories Europe, North America and Asia

People
Cinven – Pontus Pettersson (partner).
Tractel – Philippe Gastineau (CEO).
Alimak Group – Ole Kristian Jødahl (CEO), Thomas Hendel (CFO).

Advisers
Vendor (Cinven; Tractel) – Rothschild (M&A); Clifford Chance (legal); Bain & Company (commercial due diligence); PwC (financial due diligence); Fidal (tax); Marsh (insurance); Aecom (environment).