Bencis sells Desso to KKR’s Tarkett for €160m

Desso's enterprise value represents 7x its expected 2014 EBITDA figure.

Paris-based Tarkett wholly acquired Desso from majority-owner Bencis and the company's management, which retained the balance of the shares. The transaction is expected to be finalised by the end of the year.

KKR acquired a 50% stake in Tarkett in January 2007 for an estimated €700m, in a deal that included a debt package underwrote by Lehman Brothers, according to unquote" data.

The business floated on the NYSE Euronext Paris in November last year, giving it a market cap of €1.85bn. KKR reaped €461.6m from the flotation through the sale of a 25% stake, equivalent to 15.9 million shares at the final share price of €29.

Previous investment
Bencis acquired Desso in April 2011, buying the business from NPM Capital via its €375m Bencis Buyout Fund III, which typically makes equity investments of €10-35m in Benelux companies with enterprise values of €25-150m.

At the time of Bencis's acquisition, Desso generated €210m in turnover.

NPM had acquired a 78% stake in the business in April 2007, investing alongside the company's management.

Company
Founded in 1930 and headquartered in Waalwijk, Desso operates two production plants in the Netherlands and one in Belgium.

The company is a manufacturer of carpets, with its main revenue stream coming from carpeting for businesses – 77% of its revenues were generated through this business line last year, with 13% coming from residential carpeting and the balance from its sports surface offerings.

Desso's sports surface division manufactures artificial turf and a reinforced natural grass product. Its commercial offerings are typically used within the business, education, hospitality, marine and aviation sectors.

The company employs 820 staff and generated revenues of €202m in 2013, 84% of which came from the EMEA region. Customers include ABN Amro, Rabo Bank, Procter & Gamble, Nestlé and Deloitte.

People
Alexander Collot d'Escury is the CEO of Desso; Michel Giannuzzi is the CEO of Tarkett.

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