Applus IPO to value firm at $3.5-4bn

The prospectus will be sent to investors imminently. 

Applus is expected to raise around €300m via the flotation, which will be used to pay down its debt and boost capital expenditure and acquisitions. The firm reported revenues of €1.6bn and a €200m operating profit in 2013.

Carlyle will retain a significant stake in the company following the listing. The GP currently owns 68.3% of Applus, following a €1.48bn buyout in 2007. Investindustrial entered the firm's shareholding later that year, taking a 5% stake in a €20m deal. The company is the sole minority investment in Investindustrial's portfolio.

In 2005, Sociedad de Promoción y Participación Empresarial Caja Madrid, the private equity arm of Caja Madrid, injected €133m into Applus in exchange for a 19% stake in the firm, a deal which saw Grupo Agbar and Unión Fenosa reduce their shareholding in the company.

Several GPs circled the asset in January this year, looking to keep the firm in private equity hands in a secondary buyout. The company appointed Morgan Stanley and UBS to run its IPO in December 2013, with the intention of listing on the Madrid Stock Exchange.

In February 2013, Applus expanded into China with the bolt-on of Chinese engineering firm EDI, continuing the growth strategy for the company, which has spanned eight countries. This included the €105m acquisition of Velosi in 2010. In 2007, the firm earmarked €450m to fund strategic acquisitions.

Morgan Stanley and UBS are joint global coordinators for the IPO. Morgan Stanley, UBS, Citigroup and JP Morgan are the joint bookrunners.

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• Topics
• Southern Europe
• Carlyle Group
• Spain