Lyceum – Ownership Change and Liquidity
http://www.lyceumcapital.co.uk
Business Case:
In 2005, the DAM Capital group was approached by Lyceum Capital, a leading UK mid-market private equity firm and one of its portfolio companies, Coperion Holding GmbH, the leading global manufacturer of plastics compounding systems machinery, bulk material plants and related services. Coperion & Lyceum were seeking support for a recapitalisation in order to buy out a minority shareholding.
Tailoring the Solution:
DAM Capital group committed €20m of mezzanine debt to recapitalise Coperion and to allow Lyceum and management to obtain full ownership of Coperion. Following the successful execution of this business plan, Lyceum and the management team decided to sell the company in early 2007. As a follow-on commitment, DAM Capital group provided €40m of junior debt for a staple financing to assist the sale process.
Accelerating Results:
In July of 2007, Coperion was successfully sold to Deutsche Beteiligungs AG in a secondary management buyout, achieving a significant IRR and investment return multiple for Lyceum and its investors.