New Owner for Fabory

HgCapital acquires FABORY for €345 million

Amsterdam, 26 September 2007

HgCapital, the European sector-focused private equity investor, has agreed to acquire FABORY from AAC Capital Partners (formerly ABN AMRO Capital) for a consideration of €345 million.

FABORY , formally known as Borstlap Masters in Fasteners Group, was founded in 1947 and is headquartered in Tilburg in the South of The Netherlands. It is the leading distributor of industrial fasteners such as bolts, nuts, screws, pins and nails in the Benelux region. The company also distributes chemical fasteners (tape, adhesives, sealants) and tools. Overall, the company operates in 14 countries in Europe, North America and China with 1,800 employees. Worldwide more than 120,000 customers are serviced in over 20 territories, with currently a majority of sales in the Benelux region. Its FABORY Centres  – a business-to-business convenience retail concept specialising in fasteners – give the company a unique market position, offering the repair and maintenance professional unparalleled choice and service.

FABORY has enjoyed strong growth in recent years under AAC ownership, expanding the number of FABORY Centres from 50 to 89 and transitioning successfully from a family-owned business to institutional ownership. HgCapital will support the management team in implementing an aggressive roll-out of further FABORY Centres with a focus on expansion into the high-growth markets of Central and Eastern Europe.

This will be the fifth investment in the Benelux region for HgCapital, which opened a local office in Amsterdam two years ago and, as a specialised value-added services provider, FABORY will form part of HgCapital’s Business Services portfolio. The deal follows on from the acquisition of Mondo Minerals earlier this month and brings the number of transactions HgCapital has conducted since the end of June to six.

Financing for the transaction was provided by Bank of Scotland.

Alex Shivananda, Managing Director of HgCapital Benelux, said:
"We have been following the progress of FABORY closely for nearly four years. Alfons, the CEO, and his team have performed very well in professionalising and repositioning the business and we couldn’t fail to be impressed. Accordingly we are willing to pay a good price for a great business. With our pan-European coverage and local presence we are well-positioned to support FABORY’s exciting plans for geographical expansion".

Alfons van der Aa, Chief Executive of FABORY, commented:
"Over the last years we streamlined the business and re-positioned the company with a highly scalable and successful B2B convenience retail concept. We are looking forward to taking the company to the next level with the full support of HgCapital."

Source: Press release HgCapital