Tikehau reaps 3x money multiple on EuroGroup Laminations IPO

In addition to reaping a 3x money multiple, Tikehau scored 50% IRR on the partial realisation, a source close to the situation told Unquote.

Tikehau declined to comment.

EuroGroup Laminations shares are listed at EUR 5.5 apiece, implying a market cap of around EUR 922m, according to a press release.

Unquote sister publication Mergermarket reported on the sponsor's plans to list the Italian steel component producer in December 2022. It was expected to be listed at a valuation of more than EUR 1bn in an IPO sized at around EUR 500m. The report also highlighted that the company's position in the electric vehicle market, which plays into Europe's energy transition, could appeal to investors. 

Tikehau invested in EuroGroup Laminations in September 2020, using vehicles including its T2 Energy Transition Fund to acquire a 30% stake for a reported EUR 280m.

The T2 Energy Transition vehicle was launched by Tikehau and TotalEnergies in 2018 and held a final close in February 2021 on EUR 1.1bn, according to Unquote Data. The IPO marks the third realisation for the fund, following the partial exit of French energy solutions provider GreenYellow in July 2022, and the sale of French building maintenance and renovations company Groupe Rougnon in August 2022.

During Tikehau's investment period, the GP supported EuroGroup Laminations by providing financial and strategic resources, particularly in the electric vehicle segment, according to the press release.

Following the IPO, Tikehau's investment vehicles will jointly retain an 8.5% stake, before the over-allotment option, and will continue to support the company's development and growth, according to the press release. Tikehau operating partner Jean-Marc Gales and head of private equity Italy and co-head of Italy Roberto Quagliuolo will continue to serve as board members.

Company
EuroGroup Laminations was founded in 2012 and is headquartered in Milan. It is a joint venture between EuroGroup and Marubeni Itochu Steel. With 12 plants located across the US, Italy, China, Mexico and Tunisia, EuroGroup Laminations acts as the sole supplier for 80% of the battery electric vehicle platforms for its customers, and supports global OEMs and tier 1 suppliers. It designs and produces parts for electrical motors and generators, with applications in the electric vehicle and industrial markets.

EuroGroup Laminations posted a turnover of EUR 646m and EBITDA of EUR 50m in 2021, as reported by Mergermarket.

People
Tikehau Capital – Antoine Flamarion (co-founder), Mathieu Chabran (co-founder). Roberto Quagliuolo (head of private equity Italy and co-head of Italy).

Advisers
Vendor (Tikehau Capital) – JP Morgan (financial due diligence); BNP Paribas (financial due diligence); Intesa Sanpaolo IMI CIB Division (financial due diligence); UniCredit (financial due diligence); Linklaters (legal); Rothschild (M&A); Legance and Studio Biscozzi Nobili Piazza (legal).
Company (EuroGroup Laminations) – Latham & Watkins (legal).

[Editor's note: The article has been updated to add details on Tikehau's returns.]

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Exits
• Southern Europe
• Industrials
• IPO
• Partial sale
• Tikehau Capital
• Italy