Arle Capital Partners has refinanced portfolio company Hilding Anders International. As part of the refinancing process Hilding Anders has also entered into an agreement with funds managed by KKR Asset Management to invest in a subordinated position in the capital structure. Arle remains the leading shareholder in the business.
Arle Capital Partners today announced that it has successfully refinanced portfolio company Hilding Anders International AB (“Hilding Anders”).
In total, over €800m was refinanced, extending near-term debt maturities by three years to December 2017 and June 2018 and reducing net debt to 4.8x via a considerable pre-payment of senior debt facilities.
As part of the refinancing process Hilding Anders has also entered into an agreement with funds managed by KKR Asset Management (“KAM”) to invest €350m in a subordinated position in the capital structure. The funds will be used to part repay senior lenders and provide a strong financial foundation to support Hilding Anders’ future growth. Arle remains the leading shareholder in the business.
Commenting on the refinancing, Javier Abad, Partner at Arle Capital Partners said:
“Hilding Anders is a company with significant equity upside, a very experienced management team and a clear road map for value creation. This successful
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refinancing, combined with the additional investment from KKR, will provide a stable financial footing that will allow the Company to capitalise on the growth opportunities in Europe, Russia and Asia.
“We are grateful for the strong support received from our existing lenders and look forward to collaborating with KKR and the rest of the shareholders to effectively execute the company’s strategy.”
Marc Ciancimino, Managing Director of KKR Asset Management added:
“We are excited by the opportunity to partner with a strong Nordic company which has significant footholds in several European core markets and Russia, and significant growth opportunities in emerging markets. Our goal is to support the Company in realizing its growth potential.”
For further information please contact:
Arle Capital Partners
Javier Abad: +44 (0) 20 7895 2774
Ben Foster: +44 (0) 20 3603 5221 / +44 (0) 7776 240 806
Notes to editors
Arle Capital Partners
Arle Capital Partners Limited is a London-based private equity partnership.
Arle brings together an accomplished team of investment professionals and proven international business leaders, managing a diverse portfolio of around €2 billion for a global investor base. Since taking on the portfolio in 2009, Arle has returned more than €730 million to investors, realising three investments: Ontex, Equity Trust and Capital Safety Group.
Arle’s approach is based on active ownership, working in close partnership with management to drive long term uplifts in growth and value and ultimately generate strong returns for Arle’s investors. For more information, please visit www.arle.com.
Hilding Anders, a leading bed and mattress manufacturer based in Sweden, has a market-leading position in Europe and Russia and a growing presence in Asia. The Company, which sells both branded and private-label products, employs 7,600 people in over 40 markets and has delivered strong growth over the past decade. Sales in the first half of 2013 have been 4% ahead of the prior year. For more information, please visit www.hildinganders.com
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Founded in 1976 and led by Henry Kravis and George Roberts, KKR is a leading global investment firm with $83.5billion in assets under management as of June 30, 2013. With offices around the world, KKR manages assets through a variety of investment funds and accounts covering multiple asset classes. KKR seeks to create value by bringing operational expertise to its portfolio companies and through active oversight and monitoring of its investments. KKR complements its investment expertise and strengthens interactions with fund investors through its client relationships and capital markets platform. KKR & Co. L.P. is publicly traded on the New York Stock Exchange (NYSE: KKR), and “KKR,” as used in this release, includes its subsidiaries, their managed investment funds and accounts, and/or their affiliated investment vehicles, as appropriate.
KKR has a long established history of successfully partnering with companies and shareholders in Europe, having made its first investment in Europe 17 years ago.
KKR Asset Management:
Launched by KKR in 2004, KAM invests on behalf of its managed funds, clients and accounts across long/short equities and the corporate credit spectrum, including secured credit, bank loans and high yield securities and alternative assets such as mezzanine financing, special situations investing and structured finance. With more than 100 employees, including 50 investment professionals, KAM’s investment teams are closely aligned with KKR’s wealth of private equity investment and industry resources. KAM has $27.9 billion in assets under management as of June 30, 2013. For additional information, please visit KKR’s website at www.kkr.com
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