KBC sells Novaservis for 25%+ IRR

The deal saw KBC reap an IRR "above expectations" of 25-30%, according to the vendor, after a five-year holding period.

Local investment bank Badria was given a sell-side mandate, which attracted several trade players as well as local and pan-European private equity players. The competition drove the sale price to 8x EBITDA. It was comprised of bank funding and proceeds of an equity and bond offering by Ferro.

Previous funding
KBC initially backed Novaservis in January 2006 in a deal of undisclosed value when it bought the business from two Czech individuals. At the time, the company generated €4.7m in EBITDA. During the holding period, KBC supported Novaservis in its expansion to Slovakia, where it ultimately gained the number one position in the market there. It also moved into the Romanian market, and began exporting to other CEE and CIS countries. The changes saw the company grow its sales from €18.5m in 2006 to €27.5m last year and EBITDA grew more than 30% over the holding period to €6.2m.

Company
Novaservis is a Czech company that makes and sells bathroom mixers and accessories. The business markets the brands Metalia, Nobless and Novatorre.

People
Floris Vansina led the deal for KBC. He and KBC's Ast Verbiest both sat on the board of Ferro. Petr Schreier is CEO of Novaservis. Aneta Raczek is CEO of Ferro.

Advisers
Equity – Badria (Corporate finance); Havel & Holasek (Legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• CEE
• Consumer
• Trade sale
• KBC Private Equity
• Czech Republic
• Slovakia