Bridgepoint buys AHT Cooling in €585m SBO

Amy King
03 September 2013

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Bridgepoint has acquired AHT Cooling Systems, an Austrian manufacturer of refrigerators, from Quadriga Capital and Partners Group for €585m.

Financing to support the deal was provided by Unicredit, ING and Société Générale. The senior debt package amounted to around €280m, a source close to the deal told unquote". Bridgepoint invested via Bridgepoint Europe IV, a €4.8bn fund closed in early 2009.

Partners Group anticipates a 25% IRR on its 2007 investment.

During the holding period, annual revenues increased by more than 50% to reach upwards of €300m. AHT has also grown its staff base from 650 to more than 1,100. The company's new owners intend to focus on internationalisation, particularly in emerging markets.

Nordic Capital, EQT and Ontario Teachers' Pension Plan were reported to have circled the asset in August, alongside Bridgepoint.

Previous funding
AHT has a long history of private equity ownership. In 2003, Quadriga took Austria Haustechnik private via the newco Freezing & Chilling Beteiligungs. The GP had acquired 62.7% of the firm in July 2002, buying remaining shares in 2003. Invest Mezzanine provided a debt facility.

In 2004, Equita Management bought the firm from Quadriga. The management reinvested a significant amount of the proceeds to retain a stake. Dresdner Bank acted as mandated lead arranger and underwriter for the debt package, which included senior, mezzanine and working capital facilities.

Three years later, Quadriga returned to the firm's shareholding via a management buyout from Equita alongside Partners Group. Senior debt and mezzanine facilities were provided by Dresdner Kleinwort.

Company
Founded in 1983 and based in Rottenmann, AHT manufactures plug-in refrigeration equipment for food retailers worldwide. The firm has two production sites based in Austria and China, and employs 1,100 staff. Key clients are European food retailers and supermarket chains.

In 2013, the firm is expected to generate revenues of more than €330m, up from €80m in 2003. AHT also provides an after-sales and service network with a presence in 114 countries. A significant proportion of its revenues derive from refrigerator replacement and expansion for existing customers.

People
Marc Zügel is responsible for Bridgepoint's activity in Germany, Austria and Switzerland.

Advisers
Equity – Jeffries (M&A); Unicredit (M&A); Freshfields (Legal); Boston Consulting Group (Commercial due diligence); PwC (Financial due diligence, tax); Porsche Consulting (Operational due diligence); KWN (Operational due diligence); Marsh (Insurance due diligence); URS (Social due diligence).
Vendors – Macquarie (M&A); William Blair (M&A); Trummer & Thomas (Legal); PwC (Commercial due diligence); KPMG (Tax); ERM (Social due diligence).