Arle Capital Partner, the majority owner of Hilding Anders, announced today that it has successfully refinanced Hilding Anders, Europe’s leading provider of beds and mattresses.
In total, over €800m was refinanced, extending near-term debt maturities by three years to December 2017 and reducing net debt to 4.8x via a considerable pre-payment of senior debt facilities.
As part of the refinancing process, Arle has also entered into an agreement with KKR Asset Management (KAM) for investment funds managed by KKR to invest €350m into the capital structure of the business.
The funds will be used to repay current lenders and provide a strong financial foundation to support Hilding Anders’ future growth.
Following this investment, Arle will remain the leading shareholder in the business.
“We are very pleased that the long-term financing for Hilding Anders has been secured," says Anders Pettersson, CEO and president of Hilding Anders. "We will continue to execute our 'Grow - Fix - Create' strategy in the coming years, and look forward to partner with KKR on our journey to become the leading provider of beds.”
Commenting on the refinancing, Javier Abad, partner at Arle Capital Partners, says: “Hilding Anders is a company with very significant equity upside, a very experienced management team and a clear road map for value creation. This successful refinancing, combined with the additional investment from KKR, will provide a stable financial footing that will allow the company to capitalise on the growth opportunities in Europe, Russia and Asia.”
Marc Ciancimino, MD of KKR Asset Management, adds: “We are excited by the opportunity to partner with a strong Nordic company which has significant footholds in several European core markets and Russia, and significant growth opportunities in emerging markets. Our goal is to support the company in realising its growth potential.”
