Private equity firm TowerBrook Capital Partners has signed an agreement under which it will take exclusive control of Autodistribution Group, an independent European distributor of spar
Private equity firm TowerBrook Capital Partners has signed an agreement under which it will take exclusive control of Autodistribution Group, an independent European distributor of spare parts for cars and trucks.
Under the terms of the agreement, TowerBrook will acquire a controlling stake of 62.5 per cent of Autodistribution and Investcorp, the current owner, will reinvest to acquire a 16.0 per cent stake in the company.
TowerBrook will offer lenders a 21.5 per cent equity stake in return for a reduction in the current level of debt.
The new shareholders will inject EUR110m of new capital, for the sole purpose of financing the group’s activity, with a further EUR50m to be made available to finance potential acquisitions.
Completion of the transaction is expected to take place in the next few weeks, subject to the fulfilment of a number of conditions precedent, most notably approval by the relevant competition authorities.
During this period the two Autodistribution Group holding companies, Parts Holdings and Autodis, which hold all of the group’s debt, will be subject to a ‘sauvegarde’ procedure, designed to allow the implementation of the terms of the agreement.
The company is expected to report sales of EUR1.1bn for 2008, an increase of 4.3 per cent over 2007.
Alain Redheuil, chief executive of Autodistribution, will manage the company until the completion of this agreement. Once the transaction is completed, Redheuil will assume a non-executive position on Autodistribution’s board of directors.
Gerd Siekmann will become chairman of the board and Olivier Roux will become chief executive officer.
Siekmann and Roux are both currently operating executives at TowerBrook. From 1998 to 2007, they ran together several auto components companies, notably EMPE Holding, an interior systems manufacturer, and Rhiag Group, a spare-parts distributor in Italy, Switzerland and Eastern Europe.
Redheuil says: ‘Our team dedicated all its energy into finding a solution that ensures Autodistribution’s future. I am very satisfied we have achieved that today with the arrival of TowerBrook as the majority shareholder, alongside Investcorp. With significantly reduced debt and solid operational results, the group is poised to continue its expansion for the benefit of its clients. Following the closing of the agreement, Gerd Siekmann, who will become chairman of the board, and Olivier Roux, who will become chief executive officer, will have my full support as a board member, as Autodistribution takes another step forward.’
Karim Saddi, a managing director at TowerBrook, adds: ‘We have an ambitious development plan for Autodistribution and we are happy to have reached agreement with shareholders and lenders. Autodistribution is a strong company with great growth potential. In a few years it has become a leading player in the industry, with an international footprint, and we wish to thank all of constituents, which have contributed with talent and tenacity to this expansion. The agreement we have reached provides the company with the necessary resources, appropriate capital structure and the management expertise to allow it to consolidate its leadership position in France and also in Europe.’
