Ardian buys SLV from Cinven for €800m

Katharina Semke
28 October 2016

Tweet
Facebook
LinkedIn
Google plus
Send to

Ardian has acquired German lighting producer SLV Group from Cinven in a €800m tertiary buyout.

Cinven made a 2x return on the sale, unquote" understands. According to Reuters, the buyout included a senior debt package of €360m. The news agency also reported that other bidders in the auction process organised by Goldman Sachs included 3i, Triton Partners, Pamplona and Lone Star.

Cinven said the business generated a 40% increase in turnover since its acquisition in 2011, reaching €177m in 2015. During the GP's tenure, new CEO Robert Fellner-Feldegg was appointed in February 2014.

SLV also opened its first sourcing office in China and made three bolt-ons. It acquired Unex in 2014, a Swiss provider of LED lighting fixtures. SLV acquired its Dutch distribution partner Lagotronics in 2015, and Danish provider of LED lighting Nordtronic in 2016.

The deal marks the second exit for Cinven this month, following the agreement to sell Italian-headquartered Avio Spazio to Space2 and Leonardo-Finmeccanica.

Previous funding
Cinven acquired SLV from HgCapital for an undisclosed amount thought to be around €500m in March 2011.

In August 2007, HgCapital acquired a majority stake in SLV from its founder for €320m.

Company
SLV is based in Übach-Palenberg and was founded in 1979. The company is a provider of interior and exterior lighting systems. It operates subsidiaries in Germany, France, Italy, Belgium, Switzerland, Hong Kong, the US and Russia.
SLV operates a wholesaler business model – its products are distributed via a network of partners supplying around 60 countries.

The business employs 400 people. Its turnover in 2015 was €177m, with estimated EBITDA of €65m.

People
Ardian – Christoph Naményi (managing director mid-cap buyout).
Cinven – Bruno Schick (partner).
SLV Group – Robert Fellner-Feldegg (CEO).

Advisers
Equity – OC&C Strategy Consultants (commercial due diligence);
Rothschild (debt); EY (corporate finance); Willis Towers Watson (insurance due diligence); Willkie Farr & Gallagher (legal); Robert W Baird (M&A).
Vendor – Goldman Sachs International (M&A); McKinsey (commercial due diligence); Deloitte (financial due diligence); Hengeler Mueller (legal); KPMG (tax); EY (tax).