Castik sells Acrotec to Carlyle

The transaction is expected to close in Q1 2021.

Carlyle is deploying equity via Carlyle Europe Partners V, a €6.4bn fund that targets companies with enterprise values of more than €200m. Acrotec will be the fund's fourth European platform investment, according to Unquote Data.

Carlyle said in a statement that it plans to assist the company with its growth via add-on acquisitions, as well as by expanding its medtech business.

Acrotec was to be marketed by sell-side adviser Rothschild based on EBITDA of CHF 78m, Unquote sister publication Mergermarket reported in February 2020. The business was expected to generate a valuation of up to 13.5x EBITDA, with 8-10x suggested as a lower possibility, according to a report from Reuters published in October 2020.

Castik acquired Acrotec in June 2016 in an SBO from Quilvest Private Equity. The deal valued the company at CHF 280m. At the time, Castik was deploying equity via EPIC I, which held a final close in July 2015 on €1bn. The fund deploys equity tickets of €100-250m and makes investments of equity and debt, taking minority or majority stakes.

Acrotec made 12 bolt-ons during the investment period, according to a statement. The company made four add-on acquisitions in 2019 alone, acquiring Roch, Tectri, Diener Precision Machining and Diener Precision Pumps. The company also increased its client base in the medtech industry.

Castik held a final close for EPIC II on €1.25bn in October 2020. The vehicle made its first platform deal in November, acquiring Netherlands-based Customs Support.

Previous funding
Quilvest invested CHF 30m in Acrotec in July 2012, in a growth capital deal that saw previous shareholder EPF Partners exit the business, having invested in 2006. Acrotec's management continued to hold a majority stake in the business, prior to Castik's majority investment in 2016.

Company
Established in 2006, Acrotec produces precision components for use in the watch-making industry, as well as in the automotive, electronics, medical, jewellery and aeronautics sectors. Acrotec reported 2019 EBITDA of CHF 76m and revenues of CHF 272m, marking respective increases of 17.3% and 6.5% compared with 2018's figures. according to the company's latest financial report. The company's 2019 EBITDA margin was 28%.

Based in Develier and with 15 locations in Switzerland, plus three in France and one in the US, the company employs around 1,200 staff. Acrotec employed 600 people at the time of its acquisition by Castik in 2016.

People
Castik Capital – Michael Phillips (investment partner, member of the board of managers).
Carlyle – Jonathan Zafrani (managing director).
Acrotec – François Billig (founder, CEO).

Advisers
Vendor – Rothschild (corporate finance).
Equity – UBS (M&A); Freshfields (legal); Lenz & Staehlin (legal).

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