THE NETHERLANDS - 3i sells UTT in reverse takeover

UTT specialises in the worldwide door-to-door transportation by tankcontainer of hazardous chemical and food bulk liquids. The company operates from 13 offices throughout Europe, North and South America, the Far East and Africa.

Interbulk is an investing company formed in December 2004 to acquire interests in private and quoted engineering businesses. Interbulk owns an interest in Inbulk Technologies Ltd (Technologies), which has developed innovative technology that allows dry bulk materials to be moved efficiently in a form of tank container. As part of the transaction, Interbulk has conditionally agreed to acquire the remainder of the equity it does not already own in Technologies. Following the transaction, the enlarged Group will be well-positioned as a global, full-solution provider for the movement of bulk commodities.

3i backed the MBO of UTT from parent company United Transport International in November 2002, investing EUR 17.2m as part of a transaction which secured UTT’s independence from its UK parent. In addition to providing funding, 3i introduced Rients Visser as Chairman and executed a substantial organic growth programme alongside management. UTT is now one of the world’s largest tank container operators with a fleet of over 6,000 containers operating worldwide.

Koert van Wissen and Roel Molenaar, UTT’s CEO and CFO respectively, commented: '3i has been a valued investor over the last 3 years and has strongly supported the development of UTT. The combination of UTT with Interbulk is a fantastic deal for us. Our logistics skills and network in the area of liquid chemicals are highly complementary with Technologies’ expertise in transporting solid materials and we look forward to being part of the enlarged group'.

Mark Redman, an Amsterdam-based Partner in 3i’s European buyout business, commented: 'UTT has been a great investment for 3i. Since 3i invested, the company has grown its profits significantly and has expanded its network and fleet size to confirm its position as the number three tank container operator in the world. This transaction enables 3i to realise the significant value created during the life of our investment, equating to a 2.6x money multiple and 40% IRR, whilst allowing UTT to become part of a larger organisation with extensive synergy opportunities.'

3i was advised by PricewaterhouseCoopers Corporate Finance, Amsterdam (Andries Mak Van Waay, David Payne) and Allen & Overy, Amsterdam (Justin Steer, Karine Kodde). UTT management were advised by Geordie Corporate Finance (Liz Schaefer) and Visser & Steenberghe Advocaten (Rinse Visser).

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