GERFLOR acquired by ICG
Context
Gerflor has been acquired by Intermediate Capital Group (ICG), a major transaction in the European flooring market that is expected to be finalized by the end of March 2011. ICG's investment in Gerflor is the outcome of a long-standing relationship between the two companies, with ICG having invested in Gerflor since 1992. The acquisition will see ICG support the existing management team, led by CEO Bertrand Chammas, in executing the company's development strategy, including further international expansion and targeted acquisitions. The transaction follows a period of five years during which AXA Private Equity (Ardian) has actively supported the Gerflor management team in expanding the business through bolt-on acquisitions and investment in organic growth. The deal is expected to provide Gerflor with the necessary resources and expertise to drive further growth and consolidation in the European flooring market.
It is worth noting that the fund Ardian took control of Gerflor through an LBO in 2006.
GERFLOR, which reported an EBITDA margin of in 2010, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the Industry & Manufacturing sector (11.5x).
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Target
Gerflor is a global leader in the manufacturing and distribution of decorative and eco-responsible solutions for resilient flooring and interior finishes. The organization operates as a multi-specialist, managing a portfolio of world-renowned brands such as Mipolam, Taralay, and Taraflex. The entity serves diverse end-markets, including residential, healthcare, education, and sports, while maintaining a dominant position in the transportation flooring sector (aviation and buses). Founded in France, the company counts over 4,200 employees and distributes products in more than 100 countries. With 70% of its sales generated in Europe, the firm is the co-leader of the European resilient flooring market. Its business model is driven by continuous innovation and a commitment to increasing recyclable content in its industrial processes.
Ent. Value
Equity Value
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EV / Revenue
EV / EBITDA
EV / EBIT
Historical Financials (EUR)
REFERENCES
Valuation range: EV 500M - 1.5b EUR
Revenue range: 250M - 500M EUR
EBITDA range: 50M - 100M EUR
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Target: gerflor
Acquirer: icg