Warburg Pincus has bought safety and survival equipment maker Survitec Group from Montagu Private Equity, with the deal value reported at £280m (€323.7m). The firm is to take a majority stake, with Survitec management retaining a minority interest in the company.
Montagu director Anthony Greensmith said, “Survitec is an excellent business whose management have been tremendous partners to Montagu. They have created a market leader with globally recognised brands and long-term customer relationships. We are confident that Survitec will continue to thrive under new ownership.”
In November last year, reports surfaced claiming that European private equity firm Permira was in exclusive talks to buy Survitec and had staved off bids from Carlyle and Warburg Pincus.
The finalised deal was made through Warburg Pincus’ $15bn Private Equity X fund with low debt levels, conservatively financed to provide flexibility for future acquisitions. The firm said that it arranged the debt syndicate – including Lloyds, Bol, HSBC, Unicredit, ING, GE and Societe Generale – with no post deal syndications.
Based in Danmurry, Northern Ireland, Survitec produces safety equipment for the marine, defence and aerospace sectors. Key products include life rafts, submarine escape technologies, life jackets and pilot flight equipment. The company made in excess of £150m (€173.4m) turnover in 2009. Warburg Pincus has expressed plans to grow the business internationally, particularly in North America and Asia.
Steve Coates, managing director of Warburg Pincus, said, “Survitec is a global leader in its markets and with proven long-term sustainable growth and resilience to economic cycles, it fits perfectly with our investment criteria.”
Founded in 1966, the firm has over $30bn in assets under management. Warburg Pincus invested $2.5bn last year despite the downturn, and still has 50 per cent of its latest fund to invest.
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