Paine & Partners to acquire majority ownership of Eurodrip
An affiliate of private equity investment firm Paine & Partners has entered into a definitive agreement with Aquanova International, a company controlled by Global Capital Investors II, a private equity fund advised exclusively by Global Finance, as well as with Bellaria Holding, for the sale and purchase of majority ownership of Eurodrip.
Under the agreement, the Paine & Partners affiliate would purchase all of the shares of Eurodrip currently held by Aquanova International and Bellaria, which represent approximately 67.5 per cent of the company's outstanding shares, for a price of EUR1.53 per share.
The purchase price represents a premium of 28.6 per cent compared to the closing share price on October 5, 2012.
Following the completion of the transaction, such affiliate of Paine & Partners would be required to launch a mandatory tender offer to acquire the company's remaining shares, in accordance with Greek law.
Established in 1979, Eurodrip manufactures drip irrigation solutions, which allow farmers to realise greater crop yields while more efficiently using limited water resources. The company has a market presence in over 70 countries, with operating subsidiaries in the US, Turkey, Greece, Egypt, Jordan, Peru and Mexico, and employs more than 500 people worldwide.
At completion of the transaction, the majority of Eurodrip's directors would be nominated by Paine & Partners, with Mihalis Panagis remaining chief executive officer and continuing to lead the company's management team.
Mitchell Presser, a founding partner of Paine & Partners, says: "We are proud to make this investment in Eurodrip, a recognised leader in drip irrigation, with innovative products and an extensive international reach. Eurodrip has achieved strong positions in important agricultural markets, such as Turkey and the US, due to its high quality products, strong management team and operational capabilities. Paine & Partners made a decision to pursue opportunities in the water segment and sees significant opportunities in companies like Eurodrip that offer innovative solutions for improving agricultural productivity, which is necessary in order to meet growing global demand for limited resources."
Theodore Kiakidis, partner at Global Finance, says: "We are pleased to reach this agreement with Paine & Partners and to realize a successful outcome for our investment in Eurodrip. During our ownership, we managed to more than double the company's revenue and increase EBITDA by a factor of six, establishing it as a leading player in the worldwide irrigation market. We feel confident that, under Paine & Partners' ownership, the company is ready to move to the next stage, that of a global leader."
Completion of the transaction is subject to approval by competition authorities outside Greece and other conditions customary for similar transactions.
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