IK sells Schenck Process to Blackstone after 10-year holding

Schenck was marketed with a 2017 EBITDA of €85m, according to unquote" sister publication Debtwire. The report added that the company expected a deal value of 10x earnings with 5.5x leverage.

The divestment is an exit for IK 2007 Fund, a €1.68bn vehicle that held a final close in October 2007.

The GP originally purchased the company in a buyout with an estimated enterprise value of €450m in September 2007.

Debt
Schenck has mandated Deutsche Bank and Credit Suisse as global coordinaters for a €425m high-yield bond to back the acquisition, according to unquote" sister publication Debtwire.

Previous funding
In 2005, HG Capital acquired Schenck from Dürr for €205m. The GP made the investment from its fourth fund, Must 4. Debt financing of €190m was composed of a €145m loan arranged and underwritten by Mizuho Bank, and a mezzanine facility also provided by Mizuho.

In 2007, IK acquired the company in a deal with an estimated enterprise valued of €450m. Babson Capital provided a €70m mezzanine facility and CIBC World Markets and Dresdner Kleinwort arranged the senior debt.

Company
Headquartered in Darmstadt, Germany, Schenck develops and manufactures instruments for a wide range of industrial processes, including weighing, feeding, conveying and filtration. It has 2,300 employees worldwide and operations across Europe, North and South America, China, India and Australia. Schenck serves a diversified customer base across a variety of industries, including food, chemicals, mining and construction. It projects €85m in EBITDA from €550m sales for 2017.

People
IK Investment Partners – Detlef Dinsel (partner).
Blackstone – Juergen Pinker (managing director).

Advisers
Vendor – Hengeler Mueller, Daniela Favoccia, Peter Weyland (legal).
Company – Lazard (M&A). 

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• Topics
• Exits
• Buyouts
• DACH
• Industrials
• IK Investment Partners
• Blackstone Group
• Germany
• Secondary buyout