H&F, BlackRock, GIC invest in Belron at EUR 21bn EV

Harriet Matthews
13 July 2021

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Hellman & Friedman (H&F), BlackRock and GIC are to acquire a 13% stake in vehicle glass repair and replacement firm Belron in a deal that gives the company an enterprise value of EUR 21bn and an equity value of EUR 17.2bn.

Following the deal, the company will implement a new capital allocation policy, which should see Belron reduce its leverage to 3x EBITDA by 2025; leverage currently stands at 4.1x EBITDA following its latest refinancing in April 2021.

H&F, BlackRock and GIC are not the first sponsors to back Belron. Clayton Dubilier & Rice (CD&R) acquired a 40% stake in Belron in 2017 for EUR 620m, with the company valued at EUR 3bn. Belron's management team and automotive supplier D'Ieteren Group retained a 60% stake in the company. At the time, the company had an equity value of EUR 1.55bn and posted revenues of EUR 3.3bn.

In February 2020, CD&R sold EUR 150m's worth of shares in the company back to previous parent company D'Ieteren.

Belgian publication De Tijd reported in May 2021 that CD&R was working on the sale of one quarter of its 40% stake in Belron, having reaped dividends of around EUR 900m via refinancings to support the company's growth during the investment period.

Following the deal, CD&R will own a diluted 24% stake in the business, while D'Ieteren will own a diluted 50.1% stake. H&F will be the company's third-largest shareholder with a 9% stake valued at around EUR 1.75bn.

H&F is currently deploying equity via its USD 16bn 2018-vintage ninth flagship fund, which was 73% deployed as of April 2021, according to Unquote Data.

The GP registered Hellman and Friedman Capital Partners X in January 2021 with a USD 20bn target and a USD 22bn hard-cap, according to Unquote Data.

Hellman & Friedman's recent activity in Europe includes the buyout of Italy-based financial management software developer TeamSystem. The GP has made several large-cap deals in the US this year, acquiring home decor retailer At Home for USD 2.8bn and acquiring a majority stake in healthcare supplies business Medline, which was reportedly valued at USD 30bn, alongside Carlyle and Blackstone.

Company
Founded in 1897 and headquartered in Egham in Surrey, Belron provides vehicle glass repair and maintenance services, operating in 31 countries. The company operates in the UK and Ireland under the Autoglass brand. Belron posted revenues of EUR 3.9bn and adjusted operating result of EUR 583.1m in 2020.

People
Belron – Nicolas D'Ieteren (chairman); Gary Lubner (CEO).
Clayton Dubilier & Rice – Christian Rochat (partner).