KKR to reap up to €564m in Tarkett IPO

KKR stands to receive between €490.7m and €564.3m from the sale of 15,918,765 existing shares. The indicative price range would value the company at up to €2.17bn.

The French public offering is expected to end on 20 November and the international offering is expected to close on 21 November. Pricing should take place on 21 November 21 with trading starting on 22 November.

Deutsche Bank and JP Morgan are acting as joint global coordinators and joint bookrunners. Bank of America Merrill Lynch, Crédit Agricole CIB and HSBC are acting as joint bookrunners, and Commerzbank is acting as co-lead manager.

KKR acquired a 50% stake in the business in January 2007 for an estimated €700m, according to unquote" data. Lehman Brothers underwrote the debt package for the deal.

In 2007, Tarkett acquired US sports surface specialist Defargo and swiftly followed this in 2008 with the bolt-on of US athletic track company Beynon Sports Surfaces. In 2009 and 2010, the company acquired US-based Atlas Track and Centiva respectively, and bought Tandus, originally a Chinese company with a long history as a carpet importer to the US, in 2012.

The company also made several non-US acquisitions over the last five years. It bought Brazil's Fademac in 2009 and the UK's Rhinofloor in 2010, as well as acquiring a stake in Spanish company Poligras Iberica. In 2011, the company acquired French wooden floor specialist Parquets Marty. Tarkett also created a number of partnerships with companies, namely in China, the US, the Netherlands and Turkey.

The group invested a total of €532.9m in the 2010-2012 period, comprising €94.2m spent in 2010, €95.2m spent in 2011 and €343.5m spent in 2012. The company attributes the acquisition of Tandus as the reason for the significant increase in investment spending last year.

Tarkett became established in 1987 after a couple of decades of acting as a division in various companies – the original company was founded in 1886 in Sweden. In 1997, Tarkett merged with French business Sommer Allibert. Members of the Deconinck family, which owns 50% of Tarkett, are the successors of Allibert.

Tarkett is headquartered in Paris and employs 11,000 staff. The company generated turnover of €2.3bn in 2012, as well as an EBITDA of €260.1m. Tarkett's net debt stood at €504.5m as of the end of June this year.

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