Gyrus completes recap for DuPont Sustainable Solutions

The GP said in a statement that the refinancing has allowed 60% of invested capital to be returned to investors.

Asked about the rationale behind the recapitalisation, Guy Semmens, founding partner at Gyrus, told Unquote: "We've owned DSS for 15-16 months and it's a very profitable, successful, cash-generative business. We put the business together in quite a complicated carve-out and put very limited leverage on it at the beginning."

Gyrus invested in DSS in February 2019, carving it out from EI DuPont de Nemours and Company.

The buyout was the first deal from the GP's open-ended Cortex Fund, which was launched in 2018 and had raised €240m in November 2019, according to Unquote Data. The vehicle backs mid-market companies on a deal-by-deal basis.

UBS provided debt to back the buyout in 2019 and has also provided funding for the recapitalisation. The leverage comprises senior debt and a revolving credit facility.

Asked about the GP's future growth plans for DSS, Semmens said: "The business has seen strong organic growth, and we are planning to bolt on two or three smaller acquisitions to accelerate that growth, and to leverage on the global distribution. DSS bought Lodestone in February and we're looking at one or two for next year." Lodestone Partners is based in Canada, and, given DSS's global reach, future add-on targets could be in Europe, the US or Asia, Semmens said.

The recapitalisation marks Gyrus' first portfolio realisation since the firm's establishment in 2018.

Gyrus is currently on the road for its debut fund, Gyrus Principle Fund, which has a hard-cap of €400m. The fund invests in companies with enterprise values of €30-300m and aims to make two to three deals per year. The fund held a first close in July 2020 in the €230-240m region, Semmens told Unquote. "We expect to meet that cap around March or April next year and we're around 70% of the way there now," he said.

The GP acquired LivaNova's heart valve business earlier in December 2020 via its debut vehicle, in a deal valuing the company at around €60m.

Company
Founded in 1970 and based in Geneva, DSS is an environmental and health and safety consultancy, offering advice and project management services for topics including operations risk management and operational improvements. The company has 600 full-time employees and employs a further 700-800 people as contractors.

People
Gyrus Capital – Guy Semmens, Robert Watson (founding partners).
DuPont Sustainable Solutions – Davide Vassallo (CEO).

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