Reuters – Private equity investor 3i has bought out the co-owner of its ferry group Scandlines and finalised refinancing of existing debt facilities.
3i bought Allianz Capital Partners’ (ACP) 49 percent stake for 165 million euros ($223 million). The closing of the transaction is expected to take place before the year end, 3i said in a statement on Tuesday.
After 3i and ACP cancelled an auction for the whole company earlier this year, 3i in September offered to take complete control of Scandlines in a deal valuing it at 1.35 billion euros, including debt.
3i benefited from the fact that the only potential buyer, private equity investor TPG, had offered no more than 1.3 billion euros.
3i was able to scoop up the whole asset at a valuation which it hopes will allow it to sell for considerably more money in a few years, a person familiar with the investor said.
3i and ACP bought Scandlines for 1.5 billion euros at the peak of the buyout boom in 2007, backed with 1.28 billion euros of debt. Another minority investor in the deal was bought out in 2010.