KCO III is the exclusive financing partner of Weiler Corporation in the acquisition of SWATYCOMET, a first sponsorless transaction for Kartesia.
In December 2015, Weiler Corporation completed the acquisition of SWATYCOMET, a Slovenian-based European leader in high quality bonded abrasives and technical fabrics. An important strategic move for both companies, as they will enjoy broader distribution networks and a wider range of products serving the welding, metalworking and construction markets. To support the acquisition, Weiler Corporation was looking for a financing partner offering a non-recourse solution that would allow them to acquire the business today and to properly integrate SWATYCOMET over time, while keeping sufficient financial flexibility. They chose Kartesia.
In light of the highly competitive auction process and the uncertainty regarding the continuation of one main customer contract, Kartesia acted as a trustworthy and pragmatic financing partner allowing Weiler to deliver a fully financed bid for SWATYCOMET ahead of competition.
Dr. Markus Geiger, Advisor DACH and Jean Diercxsens, Investment Manager at Kartesia, tailored a financing solution centered around a Unitranche acquisition facility. “KCO III’s investment is secured through a suitable debt exposure, and benefits from potential upside thanks to further, more entrepreneurial instruments” detailed Jean Diercxsens. And upside there should be: Markus Geiger is confident that their combined strategy will enable SWATYCOMET and Weiler Corporation to “occupy and expand their spot at the forefront of the global abrasive market”.
Part of the operation was offered as a co-investment to Kartesia’s LPs. “We are very pleased that Limited Partners promptly recognized the value of this financing opportunity and participated in the co-investment”, Markus Geiger declares.