Listed debt and equity provider European Capital has bought a 40 percent equity stake in Devglass, a French double-glazing company. The firm has invested €55 million in equity and mezzanine in the company, although the proportion was not disclosed.
The deal overall values the company at around €120 million, according to Stéphane Legrand, a director at European Capital.
The company has also provided €40 million in senior debt to the glazing business, which it will syndicate.
Legrand said: “The credit crisis is good for our business because we are able to provide equity and debt. Today it is very difficult to find financing so people will still come to us for funding.”
European Capital said in its interim results in August it was well placed to benefit from the difficulties in the credit markets. This is because the firm’s debt and equity model of investment will allow it to generate higher returns from its debt tranches to compensate for any slow down in the growth of its equity investments.
European Capital has invested €425 million ($603 million) in the quarter since the beginning of July, which is broadly continuous with the pace of more than €1.7 billion committed in the last twelve months and €1.4 billion in the calendar year to date.
Olivier Rambeau, Devglass’s chairman and chief executive continues to hold a majority stake in his company after receiving European Capital’s backing.
Devglass had a turnover of more than €60 million in 2007, taking the company's compound average growth rate up to 20 percent over the past five years.
Olivier Meline and Olivia Reveillez also worked on the transaction for European Capital.