
Benelux spirits lifted as exits rise

Exits have dominated the Benelux market in the past month, but the disposals were not all good news for the region's private equity industry.
Disappointingly, Gimv was unable to preserve the business of Belgian food processing company Verbinnen Poultry Group, in which it acquired an 80% stake in late 2007.
The business will now look to wind down after attempts to reposition the company failed and it could not find a buyer. The loss does not impact Gimv's equity value, but is the second disappointing exit for the GP from the food industry in the last four months.
However, elsewhere exit activity was of the more positive sort and mirrors a rising trend seen across Europe of successful sales as the worst days of the euro crisis begin to fade into memory.
Disposals have been on the rise recently, but not all were good news for the region's PE industry
Early in March, Montagu sold its airport lighting specialist ADB Solutions – based in Belgium – to PAI partners in a deal worth around €200m. The deal contains an impressive €120m debt package, arranged by BNP Paribas, Bank of Ireland and UniCredit, and could indicate that leveraged financing activity may finally be returning to more normalised levels.
The market also saw a secondary buyout in late February, with PPM Oost selling Pharmaline to Gilde Healthcare Partners. The Dutch medical supplies company currently supplies around 20% of pharmacies in the Netherlands. PPM Oost backed the creation of the business back in 2009, and today it employs 100 people, indicating the significant growth that can be achieved in this defensive sector, even during a recession.
Ending the region's mini-boom in exits, Apax France sold its stakes in cable TV operators Numericable Belgium/Luxembourg and Portuguese Cabovisao. The stakes were acquired by co-owner Altice. Apax France had held 40% of Numericable since a buyout in 2011 thought to be worth around €360m. The value of the deal has not been disclosed but it is thought Apax France has made a decent sum from the deal, after listed Apax investor Altamis Amboise revealed it will realise proceeds of €60m once both companies are sold.
Despite the very short holding period, Apax France says the company achieved all the strategic objectives set for it, in particular growing its "triple-play" business of putting phone, internet and TV services into customers' homes.
The surge in exit activity has been a major feature of 2013 so far, as GPs seek to demonstrate they can successfully exit businesses in order to raise new funds, and the numerous exits seen in the region recently could prompt a new wave of fundraising in the coming months. The exits also indicate M&A conditions could be turning more favourable in general, with trade players and banks more willing to stump up cash for assets.
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