PAI Partners sells Xella to Lone Star for €2.2bn

Financial details surrounding the transaction have not been disclosed. Nonetheless, the GPs sold their stake in the business for a sum understood to be in the region of €2.2bn, a source close to the deal tells unquote".

Lone Star acquires the business after a bidding process, which saw other private equity investors involved, including Apollo Global Management, Bain Capital and Blackstone, according to reports.

The transaction, which is expected to close during the first half of 2017, follows a recent cost reduction programme within the company, Xella CEO Jochen Fabritius said in a statement. According to unquote" data, the business had a 7,600 headcount in 2008, while the numbers dipped by 22% to 5,900 by 2016.

Previous funding
In 2008, PAI and Goldman Sachs acquired the business from Haniel Group for €1.6bn, according to a source familiar with the situation. The deal saw PAI acquire a 47% stake, says the source.

The transaction saw Xella sold via an auction process led by Deutsche Bank, Deloitte and Clifford Chance.

According to unquote" data, the company generated sales of €1.3bn, with a €155m EBIT in 2007.

Company
Xella manufactures construction materials, dry lining panels as well as lime and limestone products, including aerated concrete blocks, calcium-silicate units and boards.

Founded in 2002 and headquartered in Duisburg, the company has 96 production plants across 20 countries and employs a staff of 5,900. The business posted a turnover of €1.3bn and €271m EBITDA as of September 2016.

People
PAI Partners – Mirko Meyer-Schönherr (partner).
Lone Star – Donald Quintin (senior managing director).
Goldman Sachs – Martin Hintze (managing director).
Xella Group – Peter Steiner (chair); Jochen Fabritius (CEO).

Advisers
Vendors – Milbank (legal); EY (financial due diligence, tax); Boston Consulting Group (commercial due diligence).

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

• Topics
• Buyouts
• Industrials
• DACH
• Secondary buyout
• Germany
• PAI Partners
• Lone Star Funds