European Capital and its affiliates have received proceeds of EUR7.2m from exiting their investments in Scaff’holding.
European Capital realised a circa 1.8x money multiple on its initial investment, representing a circa 13 per cent IRR.
In April 2007, European Capital invested EUR7.5m in the mezzanine facility, along with Capzanine, to support the secondary buyout of Scaff’holding by Equistone, formerly Barclays Private Equity. In October 2011, the company partially repaid the mezzanine facility and European Capital received EUR3.1m.
Scaff’holding, based in Paris, France, specialises in the rental and sale of scaffolding and shoring systems. Through its network of local branches, Scaff’holding offers a range of equipment and services to meet all customers’ needs especially in terms of safety and compliance with regulations. The company is active in the fields of construction, public works, industry, entertainment and temporary structures for public events.
European Capital’s exit comes as Scaff’holding and its majority shareholder, Equistone, agreed on a tertiary buyout led by management and supported by minority equity investors.
"We have been very pleased to support management and Equistone over the past six years," says Tristan Parisot, managing director of European Capital Financial Services (ECFS). "This investment illustrates our long-term investor profile and ability to offer flexible financing solutions."
