B of I leads group of banks in €133m deal

BANK OF Ireland has led a group of banks in providing a €133 million financing package for one of the year’s largest European private equity transactions.

The bank was “lead arranger and global co-ordinator” of a syndicated loan for the acquisition of German company Kalle by Silverfleet Capital, a buyout firm.

The debt finance package comprised €113 in term debt and a further €20 million in a revolving credit facility. Bank of Ireland said “most of the banks involved” contributed about €25 million to the facility. The other banks in the syndicate included Rabobank, Lloyds, DZ, NIBC and GE.

Located in Wiesbaden, Germany, Kalle produces artificial casings for sausages and makes sponge clothes. It operates from 16 production sites in 10 countries. The firm was sold by private equity group Montagu for €212.5 million.

Peter Dunsby, head of European acquisition finance at Bank of Ireland, said the deal was “the first sizeable leveraged buyout in the German market in 2009”.

The deal is subject to competition approval in Germany and Russia.

Mr Dunsby said both Silverfleet and Montagu were clients of Bank of Ireland, which remained “committed to providing finance for leading private equity clients”.

– (Additional reporting, Reuters)