Corporate Partners II, a New York-based private equity fund managed by Lazard Alternative Investments, has invested EUR50m in Waterford Wedgwood, the company behind Waterford Crystal and W
Corporate Partners II, a New York-based private equity fund managed by Lazard Alternative Investments, has invested EUR50m in Waterford Wedgwood, the company behind Waterford Crystal and Wedgwood and Royal Doulton pottery.
Corporate Partners II has subscribed for five million cumulative convertible preference shares as part of an issue first announced last April. Ali E. Wambold, chief executive of Lazard Alternative Investments and a managing principal of Corporate Partners, and Jonathan Kagan, also a managing principal, will join the Waterford Wedgwood board.
Wambold joined Lazard Frères in 1985 and became a general partner in 1987. Since 1999, he has been responsible for Lazard’s North American alternative investment activities. Kagan, who began his career in Lazard’s investment banking division in 1980 and became a general partner in 1987, was previously a managing director of Corporate Partners I and of Centre Partners Management, which managed the Centre Capital funds.
The investment brings the total raised by Waterford Wedgwood to EUR160m before expenses. Chairman Sir Anthony O’Reilly and deputy chairman Peter Goulandris have subscribed to a further EUR7m between them and the company says it is in early discussions about the placement of a further EUR33m to be underwritten by Birchfield Holdings, a company owned by the two men.
Waterford Wedgwood, which is being advised by Compass Advisers, has earmarked EUR167m to support new marketing and business initiatives and to fund an ongoing cost rationalisation programme, including a manufacturing capacity cutback for Waterford Crystal in Kilbarry and cost reduction measures in other areas.
‘This is a significant milestone for the firm,’ O’Reilly says. ‘We are pleased that Lazard Alternative Investments is committing its capital and senior expertise to our group. The investment represents a significant endorsement of our company’s strategy. The considerable experience of Ali Wambold and Jon Kagan will be a valuable addition to the board.’
Wambold adds: ‘We are pleased to have the opportunity to invest alongside a strong and committed shareholder group to support the Waterford Wedgwood team, as they accelerate the company’s programme of restructuring and the continuing reinvigoration of its product portfolio.
‘The group owns world-class luxury brands such as Waterford Crystal, Wedgwood, Royal Doulton and Rosenthal. We believe that Waterford Wedgwood is a company in renaissance and we hope to play a useful role in contributing to its recovery.’
