3i’s Geka completes €95m refinancing

The senior-only €95m package was arranged by Bank of Ireland, BayernLB, Commerzbank, LBBW and SEB. The lenders provided a €75m term loan facility and a €20m revolving credit line.

The refinancing saw 3i reap a total of €40m via a dividend recap, including £14m returned to the firm itself.

The fresh debt will replace Geka's existing facilities, in place since 3i's buyout in April 2012, featuring both standard debt and equity and shareholder loans.

With the listed GP as a majority shareholder, the brush manufacturer has entered the high-end segment via the bolt-on of peer OEKA in Bamberg and expanded worldwide. During 2015, a production site was set up in São Paolo, Brazil, followed by new sales and sourcing facilities in Shanghai and Hong Kong.

Previous funding
According to unquote" data, Geka has been in private equity hands since 1999. In September that year, German outfit Halder invested an estimated €25m-plus ticket from its fourth fund to acquire a majority stake in the business.

In December 2004, Halder divested Geka to German private equity buyer Equita Management. The deal, valued at approximately €78m, saw Equita draw equity from its second fund.

In May 2007, Halder returned as the company's owner as it bought back its majority stake from Equita. The deal, supported by senior and mezzanine facilities, saw management retain a minority interest.

Company
Founded in 1925, Geka designs mascara brushes and applicators for clients within the cosmetics and pharmaceutical sectors. With headquarters in Bechhofen-Waizendorf, the business comprises three divisions - Geka Beauty, GEKA Healthcare and GEKA Accessories - and operates production and sales subsidiaries in Europe, Asia, the US and South America. Its current headcount sits at 800 employees.

People
Ulf von Haacke, a managing director at 3i and the head of its industrial team, worked on the deal on behalf of the listed GP.

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• Topics
• Restructuring
• DACH
• Industrials
• Germany
• 3i