KKR sells Winoa to KPS Capital Partners

According to several sources, the deal values the group (formerly Wheelabrator Allevard) at around €300m. 

KKR acquired Winoa in 2013 through a debt restructuring after its previous private equity owner, LBO France, declined to inject more cash into the company. The deal also followed LBO France's loss of clay tile and brick manufacturer Terreal, which was taken over earlier that year by its creditors, including Goldman Sachs, ING and Park Square Capital.

The fresh capital injected by KKR was used to support the company's plans to expand into emerging markets such as Russia and China, and to develop research and development capacities.

No further details on LBO France's exit were provided at this stage.

During KKR's holding period, the group's turnover dropped from €370m in 2012 to €350m.

Previous funding
LBO France acquired Winoa from Wendel Investissement in 2005 alongside Royal Bank of Scotland, which provided both mezzanine and debt funding. The deal valued the business at €373m, equivalent to 6.7x EBITDA. RBS's debt and mezzanine package amounted to around €300m, according to unquote" data. The GP carried out a dividend recapitalisation of the company in 2007, through which it got back around 50% of its initial investment.

In 2013, KKR acquired Winoa from LBO France through a debt restructuring transaction, investing through its KAM Special Situations vehicle. The deal saw the company recapitalised by reducing its debt and providing liquidity to support future growth. The company's debt was reduced from €340m to €188m, with a €60m cash injection.

The transaction followed KKR's acquisition of 50% of Winoa's debt around six months earlier.

Company
Winoa was founded in France in 1961 in order to introduce steel abrasives in Europe. The group was born from a joint venture between the American company Wheelabrator Corporation and the French company Hauts Fourneaux et Forges d'Allevard, a subsidiary of the Wendel Group.

Throughout the 1960s and 1970s, the group developed its business in France, Germany and Spain. Around 90% of its sales currently take place in these three countries. The group provides stone cutting, cleaning and the preparation and strengthening of metal surfaces for clients in the automotive, steel and construction industries.

Winoa currently employs 1,000 people and manages 12 plants on four continents, serving a total of 100 countries. It generates annual revenues of €350m.

People
KKR – Mubashir Mukadam (European head of special situations investments).

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• Topics
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