Kebek to buy majority stake in Cardoen

Pending approval by the Belgian antitrust authorities, the deal could be finalised within the next month.

The stake to be controlled by Kebek remains confidential, but unquote" sources confirmed it will exceed the 60% mark. Meanwhile, Cardoen CEO and previous majority owner Karel Cardoen will remain as a "significant" minority shareholder.

Kebek did not disclose the price it paid for the holding, but the Belgian GP typically invests €2-10m per deal. In the case of Cardoen, the actual figure lies closer to the lower end of that bracket, unquote" understands.

With Kebek as upcoming majority owner, Cardoen will look to bolster its presence in Belgium and initiate operations abroad.

The firm was first made aware of Cardoen via Belgian M&A advisor SDM, which informed the GP that the Cardoen family was on the lookout for a buyer. The negotiations first involved a number of suitors for the car superstore chain, with Kebek winning exclusivity around May 2015.

The investment, carried out alongside Cardoen's management, represents the maiden deal for Kebek's second fund. Having held a first close in June 2015, Kebek Private Equity II is currently raising funds towards its €50m hard-cap, with a final close foreseen before June 2016.

The creation of Kebek Private Equity dates back to 2012, when Belgian bank KBC was forced by the European Commission to scrap its private equity arm, among other asset managing programmes.

Kebek was then set up by previous KBC Private Equity names such as Floris Vansina and Gert van Huffel. KBC's eight remaining stakes were taken over and absorbed by Kebek's first fund, which carried out its own first two investments in 2014: chemical distributor Alphamin and contact center operator Mifratel.

Having divested PET bottle manufacturer Petainer and telecoms operator Amis in the last 12 months, Kebek I's portfolio currently counts eight companies.

Debt
The takeover will be backed with a senior debt package from BNP Paribas Fortis.

Company
Established in 1949, Cardoen manages 11 car superstores across Belgium. The business sells units from 25 brands at a discount and offers car trading services. With headquarters in Wilrijk, outside Antwerpen, the company claims to have completed 9,000 car sales in 2014, which represents €95m in turnover. Its EBITDA remains confidential, but Kebek seeks companies where profits sit in the €1.5-10m range.

People
Keben Private Equity's work on the deal was coordinated by managing partner Gert van Huffel. Karel Cardoen is the son of Cardoen's founder and currently leads the business as CEO.

Advisers
Equity - BDO (Financial due diligence, tax); Ambos NBGO (Legal).

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• Topics
• Benelux
• Buyouts
• Consumer
• Belgium