Doughty Hanson scores Balta Group exit

The transaction is expected to close at the end of August. Although no financial details have been disclosed, given the current EBITDA multiples seen in European transactions and Balta's €64.9m EBITDA for 2014, deal value could realistically sit somewhere in the region of €500-600m.

The deal marks the eighth exit for Doughty's fourth fund, which stated that 150% of capital has now been returned to investors. The vehicle was closed in 2005 and still has three assets in its portfolio.

Doughty Hanson ceased its current fundraising efforts in April this year, and will instead focus on its existing portfolio.

Previous funding
In 2004, Doughty Hanson bought Balta in a primary buyout that valued the group at €600m (5.7x EBITDA at the time). The GP secured a 70% stake (including co-investments from limited partners) while the Balcaen family retained the balance. The total amount of equity injected in the deal stood €145m, of which €116m was provided by Doughty Hanson, according to unquote" data.

CSFB and RBS underwrote the €455m debt package, which comprised senior facilities of €335m and a €120m strip.

Doughty Hanson stated it had focused on investing in the company's manufacturing capabilities, particularly in Turkey, as well as product innovation and improving operational efficiency.

Company
Founded in 1964, Balta manufactures mechanically-woven rugs, wall-to-wall carpets and carpet tiles. It employs 3,300 staff across eight production facilities worldwide, which includes six locations in Belgium, two in Turkey and a distribution site in the US. Balta posted a €520m turnover and €64.9m EBITDA in 2014.

People
John Gemmell worked on the deal for Doughty Hanson.

Advisors
Management – Debevoise & Plimpton (Legal)

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• Topics
• Benelux
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• Industrials
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• Lone Star Funds
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