PARIS, May 15 /PRNewswire-FirstCall/ -- European Capital, S.A. SICAR announced today it has invested EUR 12 million ($15 million) in the EUR 120 million mezzanine facility of Cegelec, a leading international engineering group providing electrical contracting services for industrial, infrastructure and non-residential building projects. Senior and mezzanine facilities were arranged by The Royal Bank of Scotland plc. and Calyon Corporate and Investment Bank in support of LBO France's EUR 1.08 billion acquisition of Cegelec.
"We are delighted to partner with LBO France, a highly regarded European private equity firm, and support their acquisition of Cegelec. European Capital opened its Paris office one year ago and our quickly growing reputation in the European middle market has allowed us to participate in attractive investment opportunities with premier European equity partners and expand our investments into a variety of industry sectors," said Ira Wagner, President of European Capital Financial Services Limited, ("European Capital Services"), the sub-investment manager of European Capital. "Cegelec's excellent diversification of revenues by end-markets, geography and customers, and recurring revenues and stable cash flows, make it a great addition to European Capital's expanding and diversified portfolio of investments."
European Capital has invested EUR 498 million ($644 million) in 21 companies since its formation in August of 2005. For more information about European Capital's portfolio, go to http://www.europeancapital.com/our_portfolio/our_portfolio.cfm.
"We are looking forward to supporting the growth of Cegelec, an international leader in technical electrical contracting, backed by a committed and proven management team," said Jean Eichenlaub, European Capital Managing Director. "Cegelec's leading market position is a result of its strong reputation, expertise in niche markets, expertise in large, highly technical industrial and infrastructure projects, and widespread network, which enables it to be close to its clients' sites. These attributes will serve the Company well in its future growth plans."
Founded in 1913, Cegelec provides technical contracting services, including electrical contracting, which covers automation, instrumentation and control, electrical and telecom installation and maintenance, and heating ventilation and air-conditioning services. Cegelec operates in 30 countries and holds strong market shares in France, Germany, Benelux and Morocco. Cegelec has world headquarters in Brussels and approximately 24,000 full time employees.
ABOUT EUROPEAN CAPITAL
European Capital is a buyout and mezzanine fund with capital resources of EUR 1.1 billion ($1.3 billion). European Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts and provides capital directly to private and mid-sized public companies. European Capital invests from EUR 5 million to EUR 125 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 visit the website at http://www.europeancapital.com/.
ABOUT AMERICAN CAPITAL
American Capital Strategies Ltd. , an affiliate of European Capital, is a publicly traded buyout and mezzanine fund with capital resources of approximately $7.7 billion. American Capital invests in and sponsors management and employee buyouts, invests in private equity buyouts, provides capital directly to early stage and mature private and small public companies and through its asset management business is a manager of debt and equity investments in private companies. American Capital provides senior debt, mezzanine debt and equity to fund growth, acquisitions, recapitalizations and securitizations. American Capital invests up to $300 million per company.
ABOUT LBO FRANCE
Established in 1985, Paris headquartered LBO France is an independent private equity firm. Since its inception, the private equity firm has invested in more than 60 companies for a total cumulative enterprise value of EUR 10 billion. LBO France has over EUR 1.5 billion under management. LBO France has completed some of the largest buyouts in France including Actaris, a leading manufacturer and designer of water, power and gas metering systems, Nexity, a property development firm, and Terreal, a manufacturer of clay tiles and bricks. European Capital's London office supported LBO France's November 2005 acquisition of Terreal.
This press release contains forward-looking statements. The statements regarding expected results of American Capital Strategies are subject to various factors and uncertainties, including the uncertainties associated with the timing of transaction closings, changes in interest rates, availability of transactions, changes in regional, national or international economic conditions, or changes in the conditions of the industries in which American Capital has made investments.
