Triton makes 5.5x on €527m sale of Aventics

Triton generated a multiple of 5.5x and an IRR of 60% on the sale, Unquote understands.

The deal ends a holding period of four and a half years for Triton, which acquired the company with equity from Triton Fund IV at the end of December 2013.

It is the third exit from the fourth fund after the flotation and subsequent sell-down of Befesa last year, and the partial sale of Alpine Energy to Genesis and Avallon in February this year. The vehicle was reporting a net IRR of 13.5% as of December 2017. It is also the first of two exits in the past 24 hours, as the GP also announced the divestment of Finnish social care provider Mehiläinen from Fund III in a sale to CVC Capital Partners.

Triton appointed UBS to run the sales process in February, according to Unquote sister publication Mergermarket. The report said that the process was expected to launch later in the year and would market the asset based on projected EBITDA of €60m for 2018.

Emerson specialises in fluid automation technologies, and the acquisition significantly expands its reach in this market, according to a company statement.

Previous funding
Triton completed the carve-out of Aventics (then Rexroth Pneumatics) from Bosch in December 2013. The company generated EBITDA of €22m from sales of €350m at the time of the transaction.

Since acquiring the business from Bosch, Triton changed the name from Rexroth Pneumatics to Aventics and initiated a number of reorganisation initiatives including digitalising the sales function with a B2B shop, restructuring the sales team's incentives, opening branches in Spain, Mexico, Singapore and India, and completing the bolt-on of clean energy consultant Vector Horizon Technologies.

The business also divested its non-core tooth chain and hydraulics businesses, and signed a collaboration agreement with a US engineering house to strengthen its competences in the truck business sector.

Company
Aventics was founded in December 2013 when it was carved out of Bosch. The company specialises in pneumatic technology for factory automation applications. The business is headquartered in Laatzen, Germany and employs 2,100 people globally. It generated sales of $425m in 2017.

People
Triton Partners – Claus von Hermann (investment advisory professional).
Emerson – David Farr (CEO).

Advisers
Acquirer – Greenhill (corporate finance); Freshfields Bruckhaus Deringer (legal).
Vendor – UBS (corporate finance).

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