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GIMV looking to offload Grandeco stake: De Tijd
Posted on Wednesday, 12 February 2020 15:46
Belgian investment manager GIMV is planning to divest its majority stake in Tielt-headquartered wallpaper manufacturer Grandeco, according to De Tijd.
Citing multiple undisclosed sources, the paper said the sale process has been ongoing for some time and the field has already been narrowed down to an initial list of potential acquirors for the 98.1 per cent stake.
The target’s patents are included in the possible deal.
According to De Tijd’s sources, Kumulus Partners has been appointed to advise on the process.
Grandeco has been owned by GIMV since July 2007, when the Antwerp-headquartered company supported a EUR 60.00 million management buy-out of the business, then-known as Balta Wallcoverings, picking up an 86.0 per cent stake in the process.
Prior to that deal, it was under the ownership of Belgian rug and carpet manufacturer and retailer Balta Industries.
De Tijd said that Doughty Hanson, which owned Balta at the time, felt the business was not a strategic part of its activities.
Grandeco describes itself as one of the leading producers of vinyl wallcoverings.
Founded in 1978, the company now employs 300 people and its operations span more than 80 countries, while it also operates one production plant and six sales offices.
Its brands include Wall Fashion, Deco4Walls and Vertical Art.
However, according to De Tijd, the planned sale of the business has been prompted by its declining performance in recent years.
Zephyr, the M&A database published by Bureau van Dijk, shows there were 408 deals worth a combined USD 13.15 billion targeting converted paper product manufacturers announced worldwide during 2019, compared to 2018’s 441 at USD 10.27 billion.
The most valuable of last year’s deals in the sector saw US label printer LABL pick up Multi-Color Corporation for USD 2.50 billion.
© Zephus Ltd