Argos Wityu buys Wibit Sports

The GP used its Euroknights VII vehicle for the investment, a €520m fund that held a final close in November 2017 and is now approximately 50% deployed. The deal was financed as an all-equity transaction.

The deal is Argos's second investment in Germany in the past two months following the acquisition of Bad Kreuznach-headquartered healthcare business Aktivoptik Group in August. Aktivoptik was the GP's first ever investment in Germany, according to Unquote Data.

Argos opened a German office in Frankfurt in 2016, led by partner Frank Hermann.

The GP described Wibit as an "unchallenged market leader" in its press release and stated it would support its international growth.

Catcap led a limited auction for Wibit with one other private equity bidder making the final round. The founders opted for Argos because they did not want to leverage the business, and Argos proposed to finance the deal fully with equity where the other firm wanted to structure it as a traditional leveraged buyout. They were also attracted to the growth opportunities afforded by the international reach of Argos compared with the other bidder that was a pure German player.

Hermann told Unquote that the business was profitable and could be refinanced at a later date, though he does not anticipate this course of action. 

The business could be an IPO candidate, Hermann added, due to its large growth potential and the founders' aversion to selling to a financial sponsor that would add significant leverage.

Argos completed the complex carve-out of Zodiac Milpro last year, a manufacturer of inflatable boats and ribs for the defence sector. Hermann said that no synergies had been identified but the technical teams would meet to discuss their respective expertise and share knowledge.

Company
Wibit was founded by two professional football players, Romann Rademacher and Robert Cirjak (both formerly of MSV Duisburg), in 1996. The company installs inflatable floating waterparks in lakes, swimming pools and the sea. It has installed 600 parks to date in 90 countries and employs 36 people. Financial details were not disclosed but the company stated its revenues were in the "lower two-digit-million range".

People
Argos Wityu – Frank Hermann (partner); Fabian Söffge (associate).
Wibit Sports – Romann Rademacher, Robert Cirjak (co-founders).

Advisers
Equity – King & Wood Mallesons (legal); Maconda (commercial due diligence); MRH Trowe (insurance due diligence); Rödl & Partner (financial due diligence).
Company – CatCap (corporate finance); Fried Frank Harris Shriver & Jacobson (legal); Steuerberatung Westerhoven (tax).

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• Topics
• Buyouts
• DACH
• Consumer
• Germany
• Argos Wityu
• King & Wood Mallesons