HgCapital & Capvis Buy KVT

HgCapital, a pan-European private equity firm, has joined Swiss investor Capvis in its €325m (US$461m) acquisition of Koenig Verbindungtechnik (KVT), a Swiss fastenings and sealing technology products subsidiary of German-listed Klöckner.

Capvis announced the deal in July, but with the transaction price for KVT totalling €325m and the investment being made from Capvis III, a €600m fund which closed earlier this year, an equity partner was always likely to be sought.

The two investors will ‘enjoy equal rights as investors’ and the transaction is subject to approval by the relevant competition authorities.

As part of the transaction, HgCapital Trust, a listed trust giving investors the opportunity to participate in all of HgCapital’s investments, will inject approximately £5.5m.

KVT sells force fitting fasteners, rivet systems, screw threads, adhesive products, related automation solutions and expanders for hydraulics and automotive applications, with clients primarily based in the engineering, automotive, electronics and transportation industries, as well as in medical engineering, aerospace and construction.

Source: Thomson Merger News