Reuters – Charterhouse Buys Bartec from Capvis

British buyout group Charterhouse has agreed to buy German industrial safety tools producer Bartec from private equity investor Capvis, the companies said on Tuesday. Charterhouse outbid rival private equity investors such as Clayton Dubilier & Rice, EQT and Permira as well as industry buyers Ametek, Danaher and Honeywell, sources close to the transaction said. The purchase price was not disclosed. However, banking sources told Reuters earlier this month that they expected the asset to fetch around 600 million euros ($730 million).

 

(Reuters) – British buyout group Charterhouse has agreed to buy German industrial safety tools producer Bartec from private equity investor Capvis, the companies said on Tuesday.

 

Charterhouse outbid rival private equity investors such as Clayton Dubilier & Rice, EQT and Permira as well as industry buyers Ametek, Danaher and Honeywell, sources close to the transaction said.

 

The purchase price was not disclosed. However, banking sources told Reuters earlier this month that they expected the asset to fetch around 600 million euros ($730 million).

 

The deal is another example in a wave of so-called secondary buyouts, in which one private equity house buys a business from a rival. Despite tight financing conditions due to the euro zone crisis, banks remain willing to lend for buyouts of businesses they know well and have seen performing under previous private equity owners.

 

Bartec, which was founded in 1975, makes safety systems designed to prevent explosions in hazardous areas of oil and gas production. It has seen its profits grow despite the current global economic turmoil.

 

According to bankers, it is expected post a 16 percent gain in 2012 earnings before interest, tax, depreciation and amortisation (EBITDA) to around 58 million euros.

 

Capvis bought Bartec from Allianz Capital in 2008 and strengthened it through two bolt-on acquisitions.