PE-backed Bauwerk Parkett merges with Boen

Parquet flooring manufacturer Bauwerk's merger with its Norwegian competitor is aimed at strengthening the two companies' competitiveness. The three current owners of Bauwerk and Boen, Zurmont Madison Private Equity, EGS Beteiligungen and the Johan G Olsen Group, will each hold around one-third of the new group.

The majority of deal was financed by a CHF 65m public bond issued by the new company on 25 March. The five-year bond has a hard-cap of CHF 75m and will contribute refinancing and working capital as well as acquisition finance. The two PE investors also injected some fresh equity in the deal.

The merger took the form of a direct deal initiated by Boen's advisor, Saga Corporate Finance, which contacted Bauwerk.

Both companies will continue to operate under their current names. Zurmont Madison will remain an active co-owner and will support management during the integration phase, providing both financial and industrial support, the GP said in a statement.

Company
Bauwerk Boen is a manufacturer of wooden floor coverings. Following the merger, the group will be headquartered in Zurich and will be run by an executive management team headed up by the former CEO of Bauwerk, Klaus Brammertz.

In the 2012 financial year the businesses employed 1,400 people and generated sales of around CHF 275m.

The group will be active in more than 20 European countries and will be among the three biggest manufacturers in the relevant markets.

People
Werner Schnorf is founding partner of Zurmont Madison. 

Advisors
Equity - Bär & Karrer, Christoph Neeracher (Legal); Deloitte, Jürg Glesti (Corporate finance, financial due diligence); Flurin Poltera (Tax). 
Vendor - Saga Corporate Finance (M&A).

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• Topics
• Portfolio management
• DACH
• Consumer
• Zurmont Madison Management
• Switzerland