BC Partners sells SGB-Smit to OEP

OEP will use funds from its latest investment vehicle, One Equity Partners VI, which held a final close on $1.65bn in February 2017.

Since BC Partners acquired the company in 2008, SGB-Smit has invested €150m in its growth strategy, comprising add-on acquisitions and expansion into international markets.

Existing factories have also been extended and modernised, and new factories have been built in the US, Romania, Czech Republic, India and China. The workforce has also more than doubled in this time from 1,000 to 2,200.

Debt
The transaction involves a €590m all-senior debt package to be arranged by BNP Paribas, Commerzbank, Deutsche Bank London, Natwest Markets and UniCredit. The package consists of a €340m term loan B, €50m revolving credit facility and €200m guarantee facilities.

Previous funding
In October 2008, BC Partners acquired SGB-Smit from HCP Capital and other stakeholders for more than €500m. The transaction primarily consisted of equity with a vendor loan from HCP. BC used capital from its fund BC European Capital VIII to finance the buyout.

Company
With origins dating back to 1900, SGB-Smit is a global electrical transformer manufacturer and supplier, headquartered in Regensburg, Germany. It has six production sites in Germany, the Netherlands, Romania, Malaysia and the US.

The company supplies utility companies, grid operators, renewable energy equipment manufacturers and industrial clients in 50 countries, and reported sales of €729m in 2016.

People
One Equity Partners – Johann-Melchior von Peter (senior managing director).
BC Partners – Stefan Zuschke (managing partner).
SGB-Smit – Jan Ölscher (CEO).

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