Astorg sells Surfaces Group to TA Associates

Alessia Argentieri
07 August 2020

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Astorg has sold Italian abrasive tools specialist Surfaces Group to TA Associates.

The deal values the company at around €600m, Unquote understands.

TA is currently investing via TA XIII, which was launched in March 2019 with a target of $7.5bn and held a final close on its hard-cap of $8.5bn in May 2019. The vehicle focuses on mid-market opportunities globally, making equity investments in the range of $75-400m across the technology, healthcare, financial services, consumer and business services sectors. It targets companies with enterprise values of $200m-1bn.

The sale of Surfaces ends a three-year holding period for Astorg, which acquired a 75% stake in the company from Italian GP Xenon Private Equity.

Astorg backed Surfaces via Astorg VI, which closed on its €2.1bn hard-cap in 2016. The GP is currently investing its seventh flagship fund, which closed on €4bn in January 2019. The vehicle invests in B2B companies headquartered in Europe with EVs of around €200m-1bn.

Previous funding
Xenon acquired a 60% stake in Surfaces via its €184m fund Xenon Private Equity VI in December 2015, while the management retained the remaining 40% holding.

The acquisition was partially financed by €15m in debt, which comprised €8m in senior debt and revolving credit underwritten by Cariparma Crédit Agricole, and a €7m mezzanine strip underwritten by Emisys Capital.

Company
Headquartered in Cenate Sotto, near Bergamo, Surfaces manufactures and supplies abrasive tools and consumables used to smoothen, cut and polish ceramic tiles, stone slabs, glass panes and metal.

The company has its production facilities, commercial offices and R&D operations based across seven locations in northern Italy. It also has subsidiaries in Spain, Portugal, Brazil, Turkey, Russia, India and the US.

People
Astorg – Lorenzo Zamboni (partner).
TA Associates – Patrick Sader (managing director).
Surfaces Group – Pierluigi Dinelli (CEO).

Advisers
Vendor – Houlihan Lokey (legal); Rothschild (corporate finance); BonelliErede (legal); EY (financial due diligence); Pavia e Ansaldo (legal).
Acquirer – Latham & Watkins (legal); KPMG (financial due diligence).