Private equity firm Monomoy Capital Partners’ portfolio company, Katun Corporation has completed a successful USD52 million recapitalisation with HSBC and Comvest Capital.
The proceeds of the recapitalisation were used to repay Katun’s existing debt and to pay a substantial dividend to Katun’s shareholders.
Katun is one of the world’s leading providers of OEM-compatible imaging supplies, toner, photoreceptors, and parts for copiers, printers, and other imaging equipment. Today’s dividend returns all of Monomoy’s investment plus a substantial profit for Katun’s shareholders. Following the recapitalisation, Katun remains conservatively capitalised with the continued support of Monomoy, a private equity firm with over USD1 billion of assets under management. Monomoy will continue to own 95 per cent of the business following the recapitalisation.
“Katun has been able to generate meaningful cash flow and earnings growth over the past 24 months, despite the substantial headwinds created by the strengthening US dollar,” says Sebastian Bretschneider, the Interim Chief Executive Officer of Katun. “Together with the Monomoy team, Katun has executed a disciplined business improvement program focused on providing our customers with high-quality products and an unmatched value proposition in imaging compatibles space. Today’s recapitalisation validates Katun’s significant progress under the Monomoy value creation plan, and we are pleased to mark that transformation with a return of cash to our shareholders. Equally important, our conservative capital structure will allow us to grow with our customers and suppliers as the imaging market continues to evolve.”
