3i makes 2x return on the sale of Trescal
3i Group plc (“3i”), and funds managed by 3i, announce they have agreed exclusivity with AXA Private Equity to sell their 64% stake in Trescal (“the Company”), the leading international specialist for calibration services. Minority investor, TCR Capital, has also agreed to sell its stake to AXA. The enterprise value of the transaction is approximately €250 million (£214 million).
Proceeds to 3i Group plc from today’s transaction will be c. £61 million (€71 million), representing a 19% uplift against a value of £51 million at 31 March 2013 and, in sterling terms, a money multiple of 2.0x on investment of £30 million (€36 million).
3i invested in Trescal in 2010 alongside TCR Capital, who took a minority stake. The investment represented a new step in the Company’s development, providing a platform from which to accelerate growth and strengthen its market position though organic growth and industry consolidation.
During 3i’s partnership with Trescal, the Company has made four significant acquisitions. 3i’s global network and transatlantic investment experience supported Trescal in acquiring Dynamic Technology Inc in January 2011, which established Trescal in the US. Subsequently, the Company accelerated its international expansion plans with the acquisitions of Antech Engineering in the UK, Stork Intermes in the Netherlands and Isocal GmbH in Austria. Trescal also set up a greenfield operation in Singapore.
Between 2010 and 2012, turnover at Trescal grew from €110 million to €157 million and EBITDA more than doubled from €11 million to €23 million. Trescal now has specialist calibration and measurement service solutions in over 150 sites across 16 countries. In addition, the Company now employs 1,500 staff and serves over 25,000 customers across a range of sectors including defence, aerospace, telecommunications, electronics, transportation, life sciences, utilities and automotive.
In November 2012, Frost & Sullivan recognised Trescal with the 2012 European Calibration Services Market Penetration Award.
Xavier de Prévoisin, Director and Remi Carnimolla, co-head of France, commented: “Over the last three years, we have worked in partnership with Trescal’s high-calibre management team to successfully grow and strengthen the Company’s market position, thanks to our global network and transatlantic investment experience. It is very satisfying to demonstrate that a French champion can successfully expand across other continents, particularly the US. The management team remains ambitious and we look forward to seeing the company’s continued success.”
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For further information, contact:
3i Group plc
Kathryn van der Kroft
Tel: +44 20 7975 3021
Email: kathryn.vanderkroft@3i.com
Notes to editors:
All sterling amounts are stated as at current exchange rates except historical book values which are stated at the prevalent exchange rate at the time.
About 3i Group
3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. For further information, please visit: www.3i.com.
About Trescal
Trescal, international specialist in calibration provides a broad range of services for the test and measuring equipment market. Trescal is represented in 16 countries: Austria, Belgium, Czech Republic, Denmark, France, Germany, Italy, Singapore, Spain, Sweden, Switzerland, the Netherlands, United Kingdom, United States, Romania and Tunisia. Supplementing the standard technical services (verification, calibration and repair of T&M instruments), Trescal offers its expertise for the implementation and acquisition of measurement systems, customised equipment pool management software solutions, metrology and technical support, and training. www.trescal.com
About AXA Private Equity
AXA Private Equity is a world leader in private equity, with assets of $32 billion managed or advised in Europe, North America and Asia. The company offers its investors a wide choice of funds covering the full range of asset classes: Funds of Funds (primary, early secondary and secondary), Direct Funds including Infrastructure, Small and Mid-Market Enterprise Capital, Innovation & Growth, Co-Investment and Private Debt.
With offices in Beijing, Frankfurt, Jersey, London, Luxembourg, Milan, New York, Paris, Singapore, and Zurich, AXA Private Equity is committed to supporting companies in their long term growth by providing access to its international network. AXA Private Equity sets great store by the regularity and quality of its reporting on the performance of its funds and the performance of the companies in its portfolio, as a service to its investors.
www.axaprivateequity.com
About TCR Capital
TCR Capital is an independent private equity partnership operating in the French middle market. TCR Capital invests throughout France in market leading industrial and service businesses, often family-owned, with high-growth potential. Characterized by an entrepreneurial culture, a rapid response time and a concentrated portfolio investment policy, TCR Capital is closely and actively involved with its portfolio companies. With €350 million under management in its funds, TCR Capital offers regular direct co-investment opportunities to its investors.
www.tcrcapital.com
Regulatory information
This transaction involved a recommendation of 3i Investments plc, advised by 3i France.