LBO France completes Diam SBO

The secondary buyout reportedly values Diam at €70m, including €20m of senior debt. HIG is understood to have reinvested in the form of a €10m mezzanine tranche.

The sale tops a busy week for HIG: the firm acquired metallised paper companies ARMetallizing (ARM) and Vacumet Paper, completed the spin-off of Rio Tinto's alumina business and launched the European arm of its credit business HIG WhiteHorse.

LBO France is currently investing from the White Knight VIII fund, which closed on €900m in late 2008.

Previous funding
In what was its first deal in France, HIG bought Diam from US buyout house Heritage Partners in 2007. The deal was sourced through US banks selling the previous LBO debt on the distressed market. HIG invested via its European affiliate HIG Europe and its credit affiliate Bayside Capital.

A first tentative sale process was initiated in 2008 after several LBO funds expressed interest in buying the business from HIG. The process was however halted in the light of worsening macroeconomic conditions. HIG is understood to have refinanced the company instead.

Company
Founded more than 30 years ago, Diam designs and manufactures point-of-purchase (POP) advertisement displays, with a specific focus on the high-end cosmetics industry. It employs more than 1,300 people in 13 countries across the world and reportedly posted a €166m turnover in 2011.

People
Olivier Boyadjan led the deal for HIG.

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• Topics
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• LBO France
• Secondary buyout
• HIG Capital