Prolimity sells Rigdon to Hörger Group

The sale ends a three-year holding period for the turnaround and restructuring specialist, which acquired the company at the end of 2014.

The business filed for insolvency in February 2014 and employed 120 people at the time. The restructuring was announced by Prolimity in December 2014 with the intention of saving 110 jobs. Rigdon now employs 80 people.

Prolimity executed a transformation strategy that included the implementation of cost-saving measures and the development of new sales regions and channels, as well as the establishment of an online platform and additional product innovation.

Returns will range from 1.5-1.9x with an IRR of more than 15%. The variation in returns is due to the structuring of the deal's mezzanine debt.

Rigdon made an operating loss of €400,000 in 2016, down from losses of €2.5m in 2015 and €4.5m in 2014. The GP says the company is now well-positioned for profitable growth.

Acquirer Hörger is a municipal waste management company from Sontheim.

Company
Rigdon is an independent truck tyre remanufacturer based in Günzburg. It retreads a wide range of tyres for trucks, buses, tractors, cars and motorbikes. The company employs 80 people.

People
Prolimity Capital Partners – Peter Mauritz (managing partner).

Advisers
Equity – Clifford Chance, Joerg Rhiel, Andreas Dietzel (legal); Roland Berger, Joerg Eschmann, Andreas Grille (corporate finance); Swiss Real Estate Capital, Yves Dudli (financial due diligence).

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