European Capital S.A. SICAR, a wholly-owned subsidiary of European Capital Limited (LSE: ECAS), announced today that it has invested in Groupe Sud Robinetterie ("GSR"), a manufacturer and distributor of high-end valves for the oil & gas, petrochemical, power generation and chemical industries.
European Capital's investment takes the form of senior and junior mezzanine bonds and supports 21 Centrale Partners' leveraged buyout of GSR. The founders of GSR, the Deprat family, will maintain significant ownership of the Company.
"It is a pleasure to work again with 21 Centrale Partners, an excellent European private equity firm with experience in growing manufacturing companies," said Ira Wagner, President of European Capital Financial Services Limited ("European Capital Services"), the sub-investment manager of European Capital and Chief Operating Officer of American Capital Strategies Ltd.
European Capital has invested over euro 1.7 billion (US$2.3 billion) in the last twelve months, euro 932 million (US$1.2 billion) year to date and euro 665 million (US$892 million) quarter to date. For more information about European Capital's portfolio, go to http://www.ecas.com/our_portfolio/portfolio.html
"Groupe Sud Robinetterie's business model is strongly focused on products aimed at oil & gas upstream niches, which include oil & gas extraction and production, where client specifications are extremely demanding and require complex manufacturing techniques and alloys for high reliability. The Company continues to add value for its customers by providing high responsiveness and on-time product delivery achieved through product modularity, innovation and controlled management of production capacities," said Jean Eichenlaub, European Capital Managing Director. "Our investment is not only an excellent opportunity to support this recognized leader in the ball valve market, but also an opportunity to grow our relationship with 21 Centrale Partners. We are delighted that they chose us again as an investment partner."
"Driven by an increased demand for oil & gas, the ball valve market is expected to continue to grow. In fact, given the long lead times for large scale projects in the oil & gas industry, many of the projects are already commissioned," said Etienne Haubold, European Capital Vice President. "In addition to the positive market outlook, there will be growing demand for replacement parts for ball valves, including GSR's already growing installed base of valves."
Founded in 1978, Groupe Sud Robinetterie manufactures and sells trunnion-mounted ball valves used primarily in the upstream segment of the oil & gas industry, as well as conventional valves for a wider range of applications and industries. The Company consists of three operating entities: Sud Robinetterie, Sud Robinetterie Industrie and Vannes Rigau. ISO 9001, API 6D and API 6A certified, the Company uses the most modern CAO/DAO systems and thorough testing methods for the research, design and development of the most reliable and performing products. GSR is headquartered in Marseilles, France and employs over 150 full-time employees.
"This is our second time working with European Capital in the last nine months and once again, we are pleased with their work," said Gerard Pluvinet, 21 Centrale Partners President.
"European Capital's experienced team of investment professionals conducted thorough due diligence and was able to complete this transaction quickly. We look forward to collaborating with them in future investments," said Stephane Perriquet, 21 Centrale Partners Director.
"We are excited to have the support of both 21 Centrale Partners and European Capital as Groupe Sud Robinetterie expands its geographical market reach," said Jean-Francois Deprat, Groupe Sud Robinetterie CEO. "Specifically, European Capital's experience in the European market coupled with its backing and US knowledge from its US affiliate American Capital makes them a strong partner as we move to enter the North American market."
ABOUT EUROPEAN CAPITAL
European Capital is a closed-end investment company for pan-European equity, mezzanine and senior debt investments with capital resources of approximately euro 2.1 billion (US$2.9 billion). European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital directly to private and public companies headquartered predominantly in Europe. European Capital generally invests between euro 5 million and euro 500 million per transaction in equity, mezzanine debt and senior debt to fund growth, acquisitions and recapitalizations.
Companies interested in learning more about European Capital's flexible financing should contact Jean Eichenlaub at +33-(0)-1-40-68-06-66 in Paris, or Nathalie Faure Beaulieu or Simon Henderson at +44-(0)-20-7539-7000 in London, or Robert von Finckenstein at +49-(0)-69-71-71-297 0 in Frankfurt, or visit the website at http://www.EuropeanCapital.com.
ABOUT AMERICAN CAPITAL
American Capital Strategies Ltd. (Nasdaq: ACAS), an affiliate of European Capital, is the second largest U.S. publicly traded alternative asset manager with US$12 billion in assets under management (second to Fortress). American Capital, both directly and through its global asset management business, is an investor in management and employee buyouts, private equity buyouts, and early stage and mature private and public companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital and its affiliates invest from US$5 million to US$800 million per company in North America and euro 5 million to euro 500 million per company in Europe.
ABOUT 21 CENTRALE PARTNERS
21 Centrale Partners is active in the French LBO Mid Market, and invests in industrial and services sectors. 21 Centrale Partners is part of the European private equity group 21 Investimenti, led by Alessandro Benetton and Gerard Pluvinet, which has approximately euro 1 billion of assets under management. Its portfolio companies include Averys, a leading European manufacturer of business storage systems based in France, Germany and Poland; Alltub, a leader in the production of packaging products for the cosmetics, pharmaceutical and health care consumer goods markets; and Interflora, the well-known world leader in flower transmission and distribution. In July 2006, European Capital supported 21 Centrale Partners acquisition of Batisante, a leading provider of health and safety services for multi-unit residential buildings. - PR Newswire, UK
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