Process
The sale of Kentek group to Diploma PLC
Kentek is a reseller of filters and components for heavy machinery. Its main market is Russia and the company represents the world’s leading filter and component manufacturers. Sales in 2013 amount to 22 M€ (19 M€) and the company EBIT is over 2.8 M€ (2.1 M€). Kentek employs 100 employees and the company focus is on sales, marketing and logistics. The company has subsidiaries in Moscow, St. Petersburg and in all Baltic countries. Clients are comprised of heavy machinery end-users, OEM manufacturers, service companies and spare parts distributors. Our main value creation components were:
- Executing a global buyer search, emphasizing the buyer’s capabilities in focusing on the Russian market
The transaction was carried out in four phases:
- Internal transactions in share swaps and share retirements in order to clarify the group structure
- 80 % sale to Diploma PLC,
- Earn-out 12 months and
- Put&Call deal for the minority shareholders - EV 16.5 M Euros (EV / EBITDA = 6.7)
Buyer
Diploma PLC
Diploma PLC is a technology company listed in London and operates in three lines of business. Life Sciences, Seals and Controls. Seals will complement Kentek’s offering to the end customers, as the componets are often meant for same or similar machines and devices. Diploma has sales of over 300 million euros and a market value of over 900 million euros. In addition to Europe, the company operates in Northern America, Asia and Australia.
Diploma PLCKentek Oy
