ICG sells Nora Systems to trade for $420m

Oscar Geen
15 June 2018

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Intermediate Capital Group has sold commercial flooring company Nora Systems to US trade buyer Interface for an enterprise value of $420m.

The sale ends a holding period of five years for ICG, which first entered as a minority shareholder alongside German buyout firm Capiton in 2013.

Interface will expand its flooring portfolio through the acquisition, and gain clients in the healthcare, life sciences, education and transportation sectors.

The transaction has been financed by a term loan provided by Bank of America. The company said the additional debt will increase its net debt leverage ratio to 3x EBITDA with the goal of reducing this to 2x EBITDA by mid-2020.

Previous funding
Capiton originally acquired Nora in 2007 in an MBO, taking over a majority stake in the construction systems division of corporation Freudenberg & Co, which owned the Nora brand. WestLB provided a senior finance debt package, while Dresdner Kleinwort provided a PIK note in the initial transaction.

ICG arranged a refinancing of the buyout in December 2013, in which management increased its stake in the business and ICG entered as a minority shareholder, taking a 26% stake.

Capiton fully exited the business in May 2016 when ICG acquired a majority alongside management in a new buyout, valued at more than €250m.

Company
Nora is a German commercial flooring company, founded in 1983. The Weinheim-headquartered business specialises in rubber floors for the healthcare, education and industrial sectors. The company employs 1,000 people and has clients in 80 countries. It generated revenues of $280m in 2017.

People
Interface – Jay Gould (CEO).
Nora Systems – Andreas Mueller (CEO).