M&A Deal Summary

PAI Partners and Goldman Sachs Merchant Banking Acquire The Xella Group

On August 1, 2008, private equity firms PAI Partners and Goldman Sachs Merchant Banking acquired building materials company The Xella Group from Franz Haniel & Cie. for 1.6B EUR

Acquisition Highlights
  • This is PAI Partners’ 2nd and Goldman Sachs Merchant Banking’s 1st transaction in the Building Materials sector.
  • This is PAI Partners’ 3rd and Goldman Sachs Merchant Banking’s 20th largest (disclosed) transaction.
  • This is PAI Partners’ 2nd and Goldman Sachs Merchant Banking’s 6th transaction in Germany.
Investment Fate
  • The Xella Group was sold to a consortium of financial buyers in 2016.

M&A Deal Summary

Date 2008-08-01
Target The Xella Group
Sector Building Materials
Buyer(s) PAI Partners
Goldman Sachs Merchant Banking
Sellers(s) Franz Haniel & Cie.
Deal Type Divestiture
Deal Value 1.6B EUR

Target

The Xella Group

Duisburg, Germany
website
The Xella Group is an international solution providers in the field of building and insulation materials. Xella is the parent company of such well-known brands as Ytong, Silka, Hebel, and Multipor, and is one of the pioneers in digitally supported construction processes with its digital planning service blue.sprint.

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Buyer(S) 2

Buyer

PAI Partners

Paris, France

Investor Investor Investor Investor Investor

website


Category Private Equity Firm
Founded 1998
PE ASSETS 16.2B EUR
Size Mega
Type Sector Agnostic
DESCRIPTION

PAI Partners is a European private equity firm that makes controlling equity investments in buyout transactions valued in excess of €300 million. PAI is particularly interested in 'investing in consolidating sectors and in markets where growth can be sustained through economic and financial market cycles.' Sectors of interest include consumer retail, professional distribution, building materials, infrastructure and utilities, media, IT, communications, food, consumer goods, healthcare, chemicals, automotive, aeronautics, paper & packaging, electrical appliances, and household equipment (heating, air-conditioning, security). The firms invest in the range of €100 - €300 million transaction. PAI was formed in 1998 and is based in Paris with additional offices in Madrid, Milan, Munich, Luxembourg, Copenhagen, and London.


DEAL STATS #
Overall 30 of 91
Sector (Building Materials) 2 of 3
Type (Divestiture) 2 of 7
Country (Germany) 2 of 5
Year (2008) 2 of 2
Size (of disclosed) 3 of 31
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-07-01 Atos

Bezons, France

Atos is a digital services provider. Serving a global client base, the Group provides Consulting & Systems Integration services, Managed Services & BPO, Cloud operations, Big Data & Cyber-security solutions, as well as transactional services through Worldline, the European provider in the payments and transactional services industry. Atos is focused on business technology that powers progress and helps organizations to create their firm of the future. Atos was founded in 1982 and is based in Bezons, France.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2009-06-21 Chr. Hansen A/S

Horsholm, Denmark

Chr. Hansen Holding A/S develops, produces and markets unique and innovative savory solutions (the non-sweet taste spectrum), including flavors, seasoning compounds and functional ingredients for the food industry, with special emphasis on the fields of processed meat and convenience food.

Sell $7M
Buyer

Goldman Sachs Merchant Banking

New York, New York, United States

website


Category Private Equity Firm
Founded 1986
PE ASSETS 155.0B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Goldman Sachs Merchant Banking Division is the investment arm of Goldman Sachs. The primary corporate investment group within the Merchant Banking Division is Goldman Sachs' direct investment arm. GS's direct investment arm consists of GS Capital Partners, GS Mezzanine Partners, and GS Growth Partners. GS Capital Partners is the direct corporate equity investment group which seeks LBO, recapitalization, and growth investments to help fund acquisitions, expansions, recapitalizations, restructurings, buyouts, and take privates. GS Capital Partners looks to invest between $50 and $800 million in opportunities in North/South America, Europe, Asia. GS Mezzanine Partners is the junior capital arm of Goldman Sachs. GS Mezzanine looks to invest between $200 million and and $800 million in transactions valued up to $10 billion. Investment proceeds are used to fund leveraged buyouts, expansion financings, recapitalizations, acquisitions, and restructurings. GS Growth looks to invest in growth equity transactions. The unit seeks to commit $20 to $200 million per investment. Other units within GS's merchant banking division include Real Estate, Infrastructure, and Urban Investments. Goldman Sachs Merchant Banking Division is based in New York City.


DEAL STATS #
Overall 64 of 178
Sector (Building Materials) 1 of 2
Type (Divestiture) 7 of 12
Country (Germany) 6 of 8
Year (2008) 9 of 12
Size (of disclosed) 20 of 52
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2008-06-04 Alltel

Little Rock, Arkansas, United States

Alltel Corp. is an owner and operator of a wireless network and has approximately 12 million wireless customers, both individuals and businesses. Alltel owns a majority interest in wireless operations in more than 100 metropolitan service areas and a majority interest in more than 200 rural service areas.

Sell $28.1B
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2008-09-01 CIFA

Milano, Italy

​CIFA is a concrete equipment manufacturer offering full-line concrete equipments including concrete pumps, concrete mixers, plants, and formworks. CIFA was founded in 1928 and is based in Milano, Italy.

Buy €511M

Seller(S) 1

SELLER

Franz Haniel & Cie.

Duisburg, Germany

website


Category Company
Founded 1756
Sector Diversified
DESCRIPTION

Franz Haniel & Cie. GmbH is a family-owned group of companies with holdings in a variety of sectors. Franz Haniel was established in 1756 and is based in Duisburg, Germany.


DEAL STATS #
Overall 1 of 1
Sector (Building Materials) 1 of 1
Type (Divestiture) 1 of 1
Country (Germany) 1 of 1
Year (2008) 1 of 1
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-04-22 Bekaert Textiles NV

Waregem, Belgium

Bekaert Textiles NV develops, manufactures, and supplies mattress textile products. Bekaert Textiles is headquartered in Waregem, Belgium.

Buy -