IK sells sink producer Schock to Triton

Harriet Matthews
18 February 2021

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IK Investment Partners is to sell kitchen sink maker Schock in an SBO to Triton.

The deal values the company in the region of €300m, a source close to the situation confirmed to Unquote.

Triton is deploying equity via Triton Fund V, which held a final close in January 2019 on €5bn. Schock will be the fund's 11th platform investment, according to Unquote Data.

Triton said in a statement that it intends to grow the business via targeted M&A, including in the US, and will also work with the company's management to support the growth of its core business.

IK invested in Schock in November 2016 in a deal valued at approximately €72.5m, equating to an entry multiple of around 6x its 2016 EBITDA of €12m. The GP deployed equity via IK VIII, which held a final close in November 2016 on €1.85bn.

IK VIII was fully deployed as of June 2020, according to Unquote Data. The vehicle wrote equity tickets of €50-150m for its platform investments. Recent exits from the fund include care home operator Colisee, which IK sold to EQT in August 2020, having acquired the business in April 2017.

IK said in a statement that Schock grew its client base, developed its products, and also grew via internationalisation during the investment period. The company more than doubled its operating profit in that time, according to the same statement.

Unquote sister publication Mergermarket reported in January 2021 that IK had mandated William Blair to advise on the sale of Schock, which was to be marketed based on projected EBITDA of €27-28m for 2021. Sources told Mergermarket that the process was likely to attract sponsors looking to capitalise on the growing consumer homeware market.

IK announced its acquisition of Belgium-baased livestock industry food products supplier Innovad on 17 February, as reported by Unquote.

IK and Triton declined to comment.

Previous funding
Capital Management Partners (CMP) acquired Schock in June 2000, according to Unquote Data.

HQ Equita acquired Schock from CMP in December 2010. HQ Equita acquired an 88% stake, while Schock's management held the remaining 12%. HQ Equita said in a statement at the time that the company's revenues doubled under its ownership; Schock posted revenues of €65m in 2016.

Company
Founded in 1924 and headquartered in Regen, Schock produces kitchen sinks, as well as taps and accessories, specialising in quartz composite sinks. The company has 200 sink models in more than 40 colours and holds 130 patents for its products. According to its 2019 accounts, it generated revenues of €78.4m in 2019, compared with €76.6m in 2017. Schock employs 500 staff.

People
Schock – Ralf Boberg (CEO).
Triton – Ruth Linz (co-head, consumer); Peder Prahl (director of the general partner for the Triton funds).
IK Investment Partners – Mirko Jablonsky (partner).

Advisers
Vendor – William Blair, Philipp Mohr, Dirk Felsmann (corporate finance); Latham & Watkins, Henning Schneider, Nils Röver (legal); EY, Björn Reineke (commercial due diligence); Hinrich Grunwaldt, Sandra Krusch (financial due diligence); Robert Seiter (ESG due diligence).