March 2005
MML Capital Partners ("MML"), the independent mezzanine and private equity provider, today announces the sale of Waterbury Companies Inc. (“Waterbury”), a US-based manufacturer and marketer of hygiene and pest control products, to Wind Point
Partners, a Chicago-based private equity fund.
The total consideration for the transaction is undisclosed although it represents a multiple of over 8 times 2004 EBITDA.
In the last three months, MML has generated exits of $100 million from funds relating to the refinancing of TDF, the French transmission towers business; the partial refinancing of Integrated Dental Holdings, one of the UK’s largest dental chains, which MML backed in its public-to-private in June 2004; and the sale of Waterbury amongst other transactions.
MML backed the management buyout of Waterbury in August 1998 from Carpenter Technology Corporation, a NYSE-listed manufacturer and distributor of specialty alloys, following its acquisition of Talley Industries. The initial capitalisation at the time of the buyout represented a multiple of less than 6 times forecast EBITDA.
MML’s investment comprised a mezzanine loan facility and significant minority equity participation.
Waterbury is headquartered in Connecticut and has operations in the US, Canada and Europe. Its range of products includes air freshening and sanitising products, pest and agricultural insect control.
Commenting on the sale of Waterbury, Robert Davies, Managing Director of MML who acted as non-executive chairman of Waterbury, said: “Waterbury has been an excellent investment for MML. The company has grown consistently, both organically and through acquisitions in Europe and Canada, and we have worked together to make significant strategic changes to the business, which have proved decisive in building real value for all the investors.”
Rory Brooks, Founder Director of MML, added: “We continue to focus on mid-market and self-sponsored mezzanine investments, where we believe there are attractive returns, particularly at a time when pricing at the LBO end of the mezzanine market has become particularly aggressive. Waterbury provides an excellent example of a successful self-sponsored transaction where MML provided mezzanine and minority equity in the company to support its growth through acquisition and organically.”