
Ergon acquires Fundició Dúctil Benito
Belgium mid-cap firm Ergon Capital Partners has acquired a majority stake in Catalan company Fundició Dúctil Benito in its first transaction in Spain.
The investment was channelled via Ergon's third fund, ECP III, which was launched in 2010. It involved the provision of replacement capital followed by a capital increase. The company was bought for between €50-100m from the founding family, which retains a minority stake.
Having had contact with the company prior to the deal's origination, Ergon was convinced that Benito has strong international growth potential and a track record of success, as demonstrated by its weathering of the economic troubles in Spain by increasing its presence abroad. With the help of its network, the investor aims to triple overseas turnover over the next four years by securing large contracts in new countries.
Benito was attracted to Ergon, meanwhile, due to its industrial focus, international network and its understanding of the needs of family businesses.
Ergon is currently studying other deals in Spain, having noticed that a number of multinational companies are leaving Catalonia for Eastern Europe at present due to the economic situation.
Debt
Debt for this transaction was structured by La Caixa (lead arranger), BBVA and UBI International and represents 50% of the total deal value.
Company
Barcelona-based Fundició Dúctil Benito designs, manufactures, and sells cast-iron covers and grates, site furnishings, children's playground equipment, and public lighting. It generates an annual turnover of around €70m, with international sales representing a fifth of this amount, or €15m.
The company was founded in 1914 and has a workforce of 170.
People
Nicola Zambon, partner and managing director of Ergon's Spanish office, led the deal for Ergon and joins the company's board.
Joaquim Carandell, whose family founded the company, and Marcos Carrasquilla continue in their respective roles as chairman and general manager of Benito.
Advisers
Equity – Lazard, Enrique Namey (Corporate finance); Garrigues, José Manuel Martin; Herbert Smith, Gonzalo Martin (Legal); KPMG, David Hohn (Financial, tax, labour and legal due diligence); a.Connect, Robert Steenhof (Operations); Willis, Alfonso Conde (Insurance); Electa Group, Massimo Longoni (Structuring).
Debt – DLA Piper, Jesus Zapata (Legal).
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Multi-family office has seen strong appetite, with investor base growing since 2016 to more than 90 family offices, Meiping Yap told Unquote
Permira to take Ergomed private for GBP 703m
Sponsor deploys Permira VIII to ride new wave of take-privates; Blackstone commits GBP 200m in financing for UK-based CRO
Partners Group to release IMs for Civica sale in mid-September
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Change of mind: Sponsors take to de-listing their own assets
EQT and Cinven seen as bellweather for funds to reassess options for listed assets trading underwater