KKR reaps €461.6m in Tarkett flotation

Ellie Pullen
22 November 2013

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KKR has received €461.6m from the flotation of portfolio company Tarkett, a French flooring and sports surface maker, after the company priced its IPO at €29 per share.

The final share price gives Tarkett a market cap of €1.85bn. The company shares began trading on the NYSE Euronext Paris this morning (22 November) at just below €30, a 3.3% increase from the indicated share price.

KKR has sold a 25% stake in Tarkett, equivalent to 15.9 million shares. The firm has also granted underwriters an over-allotment option of 2.4 million shares. In the event of the over-allotment option being exercised, total proceeds to KKR would increase to €531m.

KRR will retain a 22.64% stake in the business without the over-allotment option, or an 18.9% stake should the option be exercised. This means that KKR will remain Tarkett's second-largest shareholder, behind Société d'Investissement Deconinck, which has retained its 50.1% stake in the business.

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.

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

Tarkett is trading on the Paris Stock Exchange under the ticker symbol "TKTT". Shares are currently trading on the quotation line "TARKETT PROMESSES" until 26 November. From 27 November, shares will trade on the quotation line "TARKETT".

Company
Tarkett was 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.

People
Michel Giannuzzi is the CEO of Tarkett and was appointed in September 2007, shortly after KKR's buyout.