ST. PETER PORT, Guernsey, May 21, 2013 /PRNewswire/ -- European Capital Limited ("European Capital") announced today that in April it invested €4 million in mezzanine bonds to support the acquisition of Precisium Group by a company controlled by Alliance Industrie's shareholders. Following the transaction, the combined entity is the market leader in the trading and distribution of automotive spare parts in France and the UK.
"We are very pleased to invest once again in mezzanine bonds to support Weinberg Capital Partners and management in its acquisition of Precisium Group," said Tristan Parisot, Managing Director of European Capital Financial Services Limited ("ECFS"). "This investment demonstrates European Capital's ability to provide flexible financing solutions, including follow-up commitments to growing portfolio companies."
"The joining of Precisium Group and Alliance Industrie will create the market leader in France," stated Stephane Legrand, Managing Director of ECFS. "This combined entity is expected to generate significant growth and value through synergies."
European Capital first invested in Alliance Industrie in December 2006. Founded in 1989, Paris-headquartered Alliance Industrie purchases and distributes spare parts for automotive and commercial vehicles in France and in the UK. Alliance Industrie serves as a key link between its network of owned or affiliated car and commercial vehicle part distributors and a group of selected suppliers. The company offers over 100,000 SKUs through its subsidiaries or independent network members, mainly to independent garages and car body shops. Alliance Industrie has over 2,500 employees.Founded in 1961, Precisium Group is a major trading group for the distribution of automotive spare parts in France. Similar to Alliance Industrie, Precisium Group trades spare parts between a network of car parts suppliers referenced by the group and a network of affiliated distributors, who sell spare parts to independent garages and body shops. Precisium Group is headquartered in Sainte-Genevieve-des-Bois, France and has over 170 employees. "We appreciate European Capital's capacity to value the management team's strategic rationale, positioning themselves as a long-term partner of Alliance Industrie, which has the potential to become a leading European player," stated Philippe Klocanas, Partner at Weinberg Capital Partners.