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European Capital exits MTH for 1.6x return

12 Jun 2013

exit 15_sqAmerican Capital affiliate European Capital has exited its investment in Metall Technologie Holdings (MTH) for a return of 1.6 times after more than six years of ownership.

The industrial heat treatment technology company was sold to Tenova’s subsidiary LOI Thermprocess.

European Capital invested in December 2006 by providing senior term loans including a revolving credit facility, an acquisition line, a mezzanine loan, a shareholder loan and common equity.

The return multiple of 1.6 includes the interest and fees earned over the life of European Capital’s investment in MTH.

The firm said that the consideration it received for MTH represents a one per cent premium to the company’s valuation in the first quarter of this year.

European Capital Financial Services managing director Etienne Haubold said, “Following our initial investment in 2006, we have developed an outstanding partnership with management whom we’ve worked closely with consolidating the Company’s leadership.

“We are proud to have been a part of MTH’s history of excellence and successful geographic expansion, and we’re excited for the company as it moves forward under Tenova’s ownership, which will further grow MTH’s geographic footprint while generating benefits from Tenova’s extensive experience.”

Last month European Capital backed the acquisition of Precisium Group by Alliance Industrie’s shareholders with €4m in mezzanine bonds.

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