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07/2017

THE CARLYLE GROUP takes majority stake in ADB SAFEGATE

BELGIUM Aerospace, Naval & Defense EV €500M–1.5bn

Context

PAI Partners has completed the sale of ADB SAFEGATE to Carlyle in a LBO ter, following a multi-year value creation and transformation phase. The deal represents PAI’s exit from the company after a period of international expansion and industrial consolidation. The sale process was run as a competitive auction for a mid-cap international industrial asset, involving both financial sponsors and strategic infrastructure and aviation players. Carlyle Europe Partners IV emerged as the successful bidder and will support management in the next phase of growth. The transaction reflects a standard portfolio rotation for PAI Partners, crystallizing value in a scaled global platform while recycling capital into new investments. The deal was structured as a leveraged buyout, combining senior debt and subordinated financing instruments.

In the past, the company had already been the subject of several LBOs, notably led by Montagu Private Equity in 2009 and Pai Partners in 2013. This succession of buyouts highlights the strong attractiveness of the company's business model.

ADB SAFEGATE, which reported an EBITDA margin of [members only] in 2017, is valued in this transaction at an EV/EBITDA multiple of 10x–18x, representing a premium to the average currently observed in the Industry & Manufacturing sector (11.7x).

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Target

ADB SAFEGATE (ex ADB Airfield Solutions) is a global leader in airfield ground lighting (AGL) systems for airport infrastructure. The company designs, manufactures, and markets a comprehensive range of runway and taxiway lighting products, as well as integrated control, monitoring, and power management systems used in airport operations. Its solutions cover both airside equipment and centralized control systems deployed in control towers and electrical substations. ADB serves a wide range of airport customers, from major international hubs to regional airports, military bases, and heliports. The company has a strong global footprint, with installations in more than 2,000 airports across over 175 countries. It operates an international industrial and commercial platform, including manufacturing sites in Europe, the United States, and China, as well as a global network of sales offices and distributors. The company is also recognized for its technological leadership in LED airfield lighting and intelligent airport infrastructure systems.

Ent. Value

€500M–1.5bn

Equity Value

[members only]

Multiples

EV / Revenue

1x–3x

EV / EBITDA

10x–18x

EV / EBIT

[members only]

Historical Financials (EUR)

Year
Rev
EBITDA
EBIT
2017
€450–900M
€50–100M
[members only]
2016
€450–900M
€50–100M
[members only]

Other operations with ADB SAFEGATE

Other operations with ADB SAFEGATE

List of similar M&A transactions (Date, Acquirer, Target, Country, Sub-sector)
DateAcquirerTargetCountrySector
02/2016ADB SAFEGATE / PAI PARTNERSSAFEGATE INTERNATIONALSWEDENAerospace, Naval & Defense
11/2013PAI PARTNERSADB SAFEGATEBELGIUMAerospace, Naval & Defense
06/2009MONTAGU PRIVATE EQUITYADB SAFEGATEBELGIUMAerospace, Naval & Defense

REFERENCES

Valuation range: EV €500M–1.5bn

Revenue range: €450–900M

EBITDA range: €50–100M

EV/Revenue range: 1x - 3x

EV/EBITDA range: 10x - 18x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of ADB SAFEGATE by THE CARLYLE GROUP are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Target: adb safegate

Acquirer: the carlyle group