THE WENDEL CONSORTIUM BEGINS EXCLUSIVE NEGOTIATIONS
WITH SCHNEIDER GROUP TO FINALISE ITS ACQUISITION
OF LEGRAND
June 24, 2002 - The Wendel
Consortium, which consists of Wendel Investissement
and Kohlberg Kravis Roberts & Co. L.P. (KKR),
signed today an exclusivity agreement with Schneider
in order to finalise the acquisition of its
investment in Legrand before the end of July
2002.
The purchase price is of €3.7 billion
for 100% of the equity capital.
At the close of this transaction, it would
represent the largest Leverage Buy Out ever
completed in Europe.
The Wendel Consortium intends to develop Legrand
and to strengthen its leading position in low
voltage equipment, in the perspective of its
long term development and in the context of
a possible public relisting of its shares in
the medium term.
Legrand is a particularly fitting example of
a potential Leverage Buy Out because of its
quality of management, its strong market performance,
its recurring cash flows and its high potential
for further development.
The exclusivity period will be devoted to finalising
the purchase agreements and to initiating all
necessary procedures to complete the transaction.
The completion of the transaction would remain
subject to the necessary anti-trust approvals
from the EU and from a number of countries in
which Legrand operates. Following these approvals,
the transaction should close during the 4th
term of 2002.
The Wendel Consortium has agreed with Schneider
that the transaction would not occur if in October
2002 the Tribunal de Première Instance
annuls the decision of the EU dated October
10, 2001, which vetoed the merger of Schneider
and Legrand. In that case and if Schneider decides
not to sell Legrand, Schneider would pay the
Consortium a fee of €180 million.
***********
WENDEL Investissement is the product of the
June 13th merger of CGIP and Marine-Wendel.
This transaction is a prime example of WENDEL
Investissement's renewed strategy of long term
investment in growth companies in which it can
own at least 34% of the equity. Since its founding,
the group has accompanied industrial and services
companies with their developments to world leader,
especially Crown Cork & Seal, Bureau Veritas,
BioMérieux, Wheelabrator-Allevard, Valeo
and Cap Gemini Ernst & Young.
KKR. is one of the world's leading private
equity firms. Its investment approach is focused
on investing in attractive businesses and working
closely with management over the long term to
design and implement value creating strategies.
Founded in 1976, KKR has completed more than
100 transactions in North America and Europe.
KKR has completed nine transactions in the UK
and continental Europe since 1996. Its current
portfolio consists of 30 companies based in
the US, Canada, Germany, Austria and the UK,
including Amphenol, Rockwood Specialties (acquired
from Laporte plc), Tenovis (formerly Bosch Private
Networks), Willis Group (formerly Willis Corroon),
Shoppers Drug Mart, Alliance Imaging, Wincor
Nixdorf (formerly Siemens Nixdorf), and Zumtobel.
Contacts:
WENDEL Investissement :
Christine DUTREIL
Tel : 01 42 85 63 24
c.dutreil@wendel-investissement.com
KKR:
Seth Goldschlager
Tel : 01 44 43 72 42
seth.goldschlager@consultants.publicis.fr
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