Gimv sells controlling stake in VCST

Gimv claims the investment generated return above its long-term average return and confirms a net positive impact of €4.6m on the equity value of its portfolio at the end of 2015.

BMT will merge the company with its subsidiary IG Watteeuw International (IGW). As part of the deal, VCST's management will take a leading role in the new combined group. To facilitate the acquisition, VCST's current shareholders subscribed a vendor loan at IGW.

The acquisition by BMT will bolster the company's growth in the industrial applications of the engine gears market. VCST/IGW will employ 2,750 people and is expected to generate a turnover of €300m.

Previous investment
In 2009, Gimv acquired a 53% stake in VCST after a restructuring process. The capital increase followed the crisis of the automotive market, which caused the company to reach peak debt of €210m at €11m EBITDA.

In December 2011, Gimv raised its majority stake in VCST to 79.8%. The investment marked the exit of a Belgium-based LP, LRM.

Company
Headquartered in Sint-Truiden, Belgium, VCST produces precision gearing, gearboxes and brake systems for passenger cars and commercial vehicles. Founded in 1975, the company has five production facilities in Belgium, China, Germany, Mexico and Romania and employs 1,250 people. The business generated turnover of €169m in 2015.

IGW was founded in 1949 under the name Mechanische Constructie Watteeuw. Headquartered in Oostkamp, Belgium, the company produces industrial gears, gearboxes for trains, metros, marine vessels, compressors and other industrial applications. IGW's production facilities are located in Belgium, Romania, the Czech Republic, China, India and the US, and generated a €113m of revenues in 2015.

Teddington-based BMT was established in 1985. The Group has 3,000 employees and realised a turnover of €306m in 2015.

People
Gimv – Nick Medaer (principal).
BMT Group – Jean-Christophe Seynaeve (CEO).
VCST – Eric Willekens (CEO).

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