3i has agreed to invest €77m in the GIF in a deal that values the company at €100m, or seven times its EBITDA.
GIF, which is currently the world’s largest external transmission test rig operator, is headquartered in Germany with additional operations in China, Japan and North America.
3i noted that the global transmissions testing market is projected to grow at an annual rate of 6.6 per cent until 2018, driven by tightening emissions regulations and the need for better fuel economy.
3i CEO Simon Borrows said, “We are delighted to be investing in GIF, a leading German Mittelstand company with a strong international footprint which operates across two sectors where we have extensive experience and a strong track record; testing and inspection and automotive.”
In July AltAssets reported that 3i will continue to target a 2x return and keep its mid-market private equity investments to around £500m.
Copyright © 2013 AltAssets