Lone Star's Xella acquires KKR's Ursa

The deal saw KKR fully exit its 90% stake in the business. Financial terms of the transaction were not disclosed and the transaction is subject to regulatory approval.

Following the deal, the target company will continue to trade as an independent business under the umbrella of Xella.

Xella also announced the sale of its Fels business unit – a German lime stone products manufacturer – to a European strategic investor. Fels employs 1,000 people and generated €265m in revenues in 2016.

Previous funding
KKR provided a €320m seven-year facility to Ursa in April 2013.

In May 2015, KKR acquired its controlling stake in the business via a debt restructuring deal. The creditors injected additional funds into the business in exchange for a 90% stake, following the business's failure to meet covenants on its debt.

In 2008, PAI and Goldman Sachs acquired Xella from Haniel Group for €1.6bn following an auction process led by Deutsche Bank, Deloitte and Clifford Chance.

Lone Star acquired the business from the investor consortium in December 2016. The GPs sold their stake in the business for a sum understood to be in the region of €2.2bn, a source close to the deal told unquote". The bidding process saw other private equity investors involved, including Apollo Global Management, Bain Capital and Blackstone, according to reports.

The transaction followed a cost reduction programme for the business, which saw its headcount dip by 22% between 2008 and 2016, according to unquote" data.

Company
Founded in 2004 by the merger of Poliglas and Pfleiderer, Ursa manufactures insulation materials, focusing on mineral wool and extruded polystyrene. The company is headquartered in Madrid and has 13 production sites in nine countries, exporting its products across Europe, the Middle East and northern Africa. The business employs 1,800 people.

The company generated a €450m turnover in 2016.

People
Xella International – Jochen Fabritius (CEO).
Ursa – Pepyn Dinandt (CEO).

Advisers
Vendor – Lazard (corporate finance).

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