European Capital Limited provided $7 million in debt financing to support The Flexitallic Group‘s acquisition of Custom Rubber Products. European Capital first invested in The Flexitallic Group in May 2012. The company makes sealing solutions and products serving the oil and gas, power generation industries. Specific terms of the acquisition were not released.
European Capital Limited and its affiliates (“European Capital”) announced today that in December 2012 they invested 7 million USD in unitranche bonds supporting The Flexitallic Group’s acquisition of Custom Rubber Products, a manufacturer of elastomer, phenolics, and thermoset plastic products for upstream and midstream oilfield and industrial markets. The Flexitallic Group, formerly named FDS Group, is an international market leader in the manufacturing and distribution of high-end sealing solutions.
“We are very pleased to invest once again in unitranche bonds alongside the Private Debt Team of AXA Private Equity to support The Flexitallic Group,” said Tristan Parisot, Managing Director of European Capital Financial Services Limited (“ECFS”). “This investment perfectly illustrates European Capital’s ability to provide flexible financing solutions, including multi-currency funding capabilities and follow-up commitments to growing portfolio companies.”
European Capital first invested in The Flexitallic Group in May 2012. The Flexitallic Group is a global leader in specialized high-end sealing solutions and products serving the oil and gas, power generation (including nuclear), chemical and petrochemical industries in emerging and developed markets. The company has its own manufacturing facilities in the U.S., Canada, the United Kingdom, France, Germany and China, in addition to an extensive network of licensed manufacturers. With approximately 1,200 employees, its 2012 sales are projected to exceed 200 million Euro. The Flexitallic Group is majority owned by Eurazeo PME.
Custom Rubber Products was founded in 1961 and operates out of an 88,000 square foot manufacturing campus in Houston, Texas. With support for compression, transfer and injection molding, the company incorporates more than 250 active elastomer and phenolic compounds for a broad spectrum of products and environments.
“As a clear leader in its dynamic niche, the addition of Custom Rubber Products to The Flexitallic Group’s portfolio is expected to generate significant growth and value,” stated Stephane Legrand, Managing Director at ECFS. “Given the common culture of client proximity in developing high-end customized solutions and The Flexitallic Group’s strong track-record in integrating acquisitions, the company will further strengthen its ability to serve its impressive portfolio of international blue-chip clients.”
“This acquisition resulted from a proactive strategic analysis carried out by management over the past two years,” stated Olivier Millet, Chairman of the Executive Board of Eurazeo PME. “We appreciated European Capital’s capacity to value the management team’s strategic rationale, positioning themselves as a long-term partner of The Flexitallic Group, which has the potential to further double its size in the next five years.”
“We were glad to count European Capital among our early supporters in the process of adding Custom Rubber Products to our portfolio,” stated Remi Toledano, President and CEO of The Flexitallic Group. “This addition immediately positions The Flexitallic Group as the global leader in static sealing technology across all segments of the energy industry: upstream, midstream, downstream and power generation.”
Since its inception, European Capital has invested 3.5 billion Euro in over 100 companies in Europe. In France, European Capital has invested 1.1 billion Euro in 28 different companies. European Capital and its affiliates will consider senior and mezzanine debt investment opportunities from 10 million to 40 million in either euros or sterling and up to 400 million for One Stop Buyouts®.
ABOUT EUROPEAN CAPITAL
European Capital is an investment company for pan-European equity, mezzanine and senior debt investments with 1.2 billion Euro in assets under management. European Capital is a wholly-owned affiliate of American Capital, Ltd (“American Capital”). It is managed by European Capital Financial Services (Guernsey) Limited (“ECFSG” or the “Investment Manager”), a wholly-owned affiliate of American Capital. The Investment Manager has offices in London and Paris. As of 31 December 2012 the Investment Manager had 5 investment teams with 22 investment professionals and employed 27 support staff. European Capital and its affiliates will consider senior and mezzanine debt investment opportunities from 10 million to 40 million in either euros or sterling and up to 400 million for One Stop Buyouts®. For further information, please refer to www.EuropeanCapital.com.
ABOUT AMERICAN CAPITAL
American Capital is a publicly traded private equity firm and global asset manager. American Capital, both directly and through its asset management business, originates, underwrites and manages investments in middle market private equity, leveraged finance, real estate and structured products. American Capital manages 18.6 billion USD of assets, including assets on its balance sheet and fee earning assets under management by affiliated managers, with 118 billion USD of total assets under management (including levered assets). From its eight offices in the U.S. and Europe, American Capital and its affiliate, European Capital, will consider investment opportunities from 10 million USD to 750 million USD.