Apax IX agrees to acquire ADCO Group
The Apax IX Fund (“Apax IX”) has today announced that it has reached a definitive agreement to acquire ADCO Group, the global market leader in the mobile sanitary solutions sector.
Founded in 1973 in Germany, ADCO Group operates the DIXI® and TOI TOI® brands which provide portable toilet and sanitation equipment rental and services to the construction, events and commercial industries worldwide. The opportunity is to back a well-positioned business with a strong brand and a wide service offering to strengthen its product portfolio and grow in both existing and new markets, including through leveraging Apax’s significant experience in the route-based services sub-sector.
AGA, whose shares are listed on the London Stock Exchange, provides investors with access to the investment expertise of Apax Partners through its investments in a diversified portfolio of private equity funds advised by Apax Partners as well as derived investments in debt and equity. In May 2016, AGA committed $350m to Apax IX.
Apax Funds to acquire majority stake in ADCO Group
Partnership to further strengthen ADCO’s product and service offering
Ratingen, Germany and London, UK, 5 August 2019 – Funds advised by the global private equity advisory firm Apax Partners (the “Apax Funds”) have today announced an agreement to acquire a majority stake in ADCO Group, the global market leader in the mobile sanitary unit sector. The existing shareholders retain a significant stake. The transaction is expected to close in Q4 2019, subject to regulatory approvals.
Founded about 45 years ago in Germany, ADCO Group operates the DIXI® and TOI TOI® brands providing portable toilet and sanitation equipment rental and services worldwide. With 49 operating companies and more than 4,000 employees, ADCO is represented in 28 countries worldwide. The company achieved a group turnover of approx. €360 million in 2018.
Apax Partners is a leading global private equity advisory firm. The Apax Funds invest globally in companies across four sectors (Tech & Telco, Services, Healthcare and Consumer) providing long-term equity financing to build or strengthen market leaders. The Funds have a long and successful track record of partnering with route-based services businesses operating in Europe (e.g. SafetyKleen, Rhiag Group, Sulo), North America (e.g. Tosca Services) and globally (e.g. IFCO Systems, Garda World).
Apax will leverage this experience to support management with ADCO’s growth plans. This will include strengthening the company’s portfolio in existing markets, as well as identifying and realising new areas for development.
Renate Gerstenberg, CEO of ADCO Group, said: “We are very pleased to partner with Apax, who will support us alongside our existing shareholders in providing a long-term growth perspective for our company. This allows us to take the next step in developing our successful business model and investing even more in internationalisation and digitalisation. Together, we will lead ADCO into a prosperous future and continue to offer our customers innovative high-quality products and solutions, while also ensuring the company remains a great place to work for our employees.”
Frank Ehmer, Partner at Apax Partners, said: “ADCO is a great example of our strategy: backing successful, market-leading companies where our sub-sector insights, operating capabilities, and global platform can help them grow further. We are delighted to partner with the ADCO management team and its committed employees and look forward to supporting the company accelerate growth.”
Citigroup served as financial advisor to the shareholders of ADCO Group in the transaction. KWM Europe Rechtsanwaltsgesellschaft mbH supported the shareholders of ADCO Group as legal advisor, and Ernst & Young with due diligence. Houlihan Lokey provided financial advice to Apax Partners regarding the transaction and Kirkland & Ellis acted as Apax Partners’ legal counsel.
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About Apax Global Alpha Limited
AGA is a Guernsey registered closed-ended collective investment scheme incorporated as a non-cellular company that listed on the London Stock Exchange on 15 June 2015. It is regulated by the Guernsey Financial Services Commission.
AGA’s objective is to provide shareholders with capital appreciation from its investment portfolio and regular dividends. The Company is targeting an annualised Total Return, across economic cycles, of 12-15% (net of fees and expenses) including a dividend yield of 5% of Net Asset Value.
The investment policy of the Company is to make Private Equity investments in Apax Funds, and Derived Investments which are investments in equities and debt derived from the insights gained via Apax Partners’ Private Equity activities. The Company’s portfolio is expected to be allocated in approximately equal proportions between Private Equity and Derived Investments, although the investment mix will fluctuate over time due to market conditions, investment opportunities, cash flow requirements, the dividend policy and other factors. Further information regarding the Company and its publications are available on the Company’s website at www.apaxglobalalpha.com.
About Apax Partners LLP
Apax Partners is a leading global private equity advisory firm. Over its more than 40-year history, Apax Partners has raised and advised funds with aggregate commitments of c.€40 billion. Funds advised by Apax Partners invest in companies across four global sectors of Tech & Telco, Services, Healthcare and Consumer. These funds provide long_term equity financing to build and strengthen world_class companies. For further information about Apax Partners, please visit www.apax.com. Apax Partners is authorised and regulated by the Financial Conduct Authority in the UK.