3rd May 2007 07:00
EMBARGOED UNTIL 0700 HRS THURSDAY 3 MAY, 2007
Candover acquires Capital Safety Group, a leading global player in the fall protection market, for ¢â€š¬415m ($565m) Candover, a leading European buyout specialist, today announces that is hassigned an agreement to acquire Capital Safety Group ("CSG") for an enterprisevalue of ¢â€š¬415m ($565m) from Electra Private Equity PLC. This is the seventhinvestment to be made from the ¢â€š¬3.5bn Candover 2005 Fund.
CSG, headquartered in Milton Keynes in the UK, is the world's leading specialist designer and manufacturer of height safety and fall protection equipment. The company owns two leading brands, DBI-SALA and Protecta, and produces products such as harnesses, lifelines and anchors used by those who work at height. Its products are sold globally and are widely used in industries such as oil and gas, construction, manufacturing and telecoms.
Equity funding is being provided by the Candover 2005 Fund. The management teamwill also be re-investing in the new equity structure. Debt and mezzaninefinancing is being led by HBOS. The acquisition is conditional upon approval bycompetition authorities.CSG has grown significantly under the current management team. Growth has comefrom a combination of the expansion of the fall protection market driven bybuoyant underlying growth in the user markets and successful company specificinitiatives, including a focus on high-growth sectors such as oil and gas andinnovative product development . This strategy will remain a focus for thegroup going forward, with particularly strong opportunities for growing marketshare in Europe and Asia.Candover is backing a highy experienced management team led by Paul Trinder,who will become Executive Chairman (formerly CEO), and Pat Velasc o, who willbecome Group Chief Executive (formerly President - North America). Commentingon the acquisition Pat Velasco, Group Chief Executive of CSG said:
"We are delighted to have the backing of Candover as we look to continue growing the business globally. Our strategy of delivering market leading, premium products will continue and we will be working with Candover to identify potential growth and acquisition opportunities to further strengthen our position as the world leader in the fall protection market."
Brian Mercer, a Candover director, said:
"CSG is a global business with a market leading position in a growingsafety-critical area. We are backing a great management team who has alreadydelivered impressive, double-digit growth, and who have ambitious plans that weare confident will lead to significant results over the next few years. Thecompany is particularly strongly positioned in the oil and gas sector, which isan area Candover understands well via its investment in a number of marketleading oil services support businesses."Candover led the buyout of Vetco International, a leading global supplier ofdrilling and production equipment for on and offshore oil and gas field fromABB in 2004. Vetco Gray, a division of Vetco International was sold to GE Oil &Gas for ¢â€š¬1.5bn in January 2007. More recently, Wellstream, a leading designerand manufacturer of high quality, custom made unbonded flexible pipelinesystems used by the offshore oil and gas industry, was listed on the LondonStock Exchange. Candover led the buyout of Wellstream from Halliburton in 2003.Candover was advised on the transaction by UBS (M&A), Latham & Watkins (legal),PwC (financial due diligence),Deloitte (tax structuring), ERM (environmentaldue diligence) and Marsh (insurance due diligence).*Candover means Candover Investments plc and / or one or more of its subsidiaries, including Candover Partners Limited as General Partner of the Candover 1997 and 2001 Funds and as Manager of the Candover 2005 Fund.
For further information, please contact:
Candover +44 (0) 20 7489 9848 Brian Mercer/Emma Wilkinson Tulchan Communications +44 (0) 20 7353 4200 Susanna Voyle/Peter Hewer Note to editors:Candover is a leading provider of private equity for large European buyouts. Founded in 1980, Candover has invested in 132 transactions with a value closeto ¢â€š¬40 billion. Investment in deals by Candover is provided in two forms, fromCandover Investments plc, a publicly quoted investment trust, and from fundsmanaged by Candover Partners Limited, a wholly owned subsidiary. In November 2005, Candover raised the ¢â€š¬3.5bn Candover 2005 Fund which has madesix investments to date, the acquisition of Parques Reunidos, a leadingoperator of regional attraction parks, the acquisition of a majority stake inFerretti SpA, a leading manufacturer of high performance luxury motor yachts,the ¢â€š¬1bn acquisition of Hilding Anders, a leading European mattress and bedsmanufacturer, the ‚£349m acquisition of UK mail services company DX Services plcand merger with Secure Mail Services, the ¢â€š¬450 million buyout of Norwegiancable TV operator Get (previously UPC Norway), and the ¢â€š¬480 million buyout ofEurotaxGlass's Group, a leading provider of automotive data and intelligenceservices.The Candover Group has five offices in London, Paris, Dƒ¼sseldorf, Madrid andMilan. Candover Partners Limited is authorised and regulated by the FinancialServices Authority in the UK.
For more information see www.candover.com
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