Altamir - Registration Document 2016

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FINANCIAL AND LEGAL INFORMATION
1
Presentation and history of the Company
Sector Country Date
of investment
Residual cost
in €m
Fair value
in €m
% of the portfolio
at fair value
Netherlands 2014 31.5 31.0 3.5
1) Business description
SK FireSafety Group specialises in fire safety and aeronautical
safety equipment maintenance. It manufactures and maintains
extinguishers, hydrants and other fire safety products and
designs fire detection and extinction systems for critical
environments.
Based in the Netherlands, the group is the result of the
combination of several companies in the sector (ten acquisitions
between 2010 and 2014) operating in the Benelux countries, in
the United Kingdom and in Norway.
2) Why did we invest?
The fire safetymarket offers robust fundamentals and recurring
revenues.
SK FireSafety has developed specific know-how in the sale and
maintenance of critical safety equipment in both the fire safety
and the aviation industries. It dominates the domestic market
(the Netherlands), where it is positioned at the high end. The
company successfully participated in consolidating this market
and is well poised to pursue other acquisitions.
SK FireSafety has a profitable, cash-generative businessmodel,
a large customer base and strong international growth potential
in its various market segments.
3) How do we intend to create value?
SK FireSafety Group aims to become a major player in fire
safety in Europe. To accomplish this, it is seeking to strengthen
its leadership in its historical markets and carry out targeted
acquisitions elsewhere in Europe.
In addition to these acquisitions, international expansion in
selected operations (e.g. Products and Aviation) and robust
cash generation will drive value creation.
4) What has been achieved?
Since investment, SK FireSafety has expanded its service
offerings in the Aviation segment through the successful
acquisition of Team Aero Services in the United States. It also
launched a new business in the Aviation sector in Malaysia (a
joint venture with a local player).
The company significantly improved the operational efficiency
of its Norwegian subsidiary, which was in a turnaround at the
time of the acquisition.
In the context of a difficult Oil & Gas market, SK FireSafety
restructured its operations and implemented significant cost
savings.
5) How is it performing?
In January 2016, the Apax Funds and the management team
collectively invested €10.5m in the company. This amount was
used to repay debt and lower the leverage ratio. Following the
collapse of theOil &Gasmarket, the company also renegotiated
the covenants in its credit contracts.
In 2016, the group generated revenues of €105.9m, up 12% vs.
2015, and reported a 55% rise in EBITDA. The considerable cost
saving measures implemented and the good performance of
recurring businesses drove an impressive rebound.
The Products, Systems and Aviation business units all reported
record revenue in 2016, with growth rates of 9%, 23% and 13%,
respectively, vs. 2015. The Norwegian unit (NOHA) confirmed
its turnaround and generated a positive EBITDA. The Oil & Gas
business unit continues to be impacted by the deteriorated
market, as oil prices decline. The measures taken by the
management reduced costs significantly, however, and enabled
the company to achieve a positive EBITDA.
Taking into account these elements, the valuation of the
investment in SK FireSafety Group gained €5.1m during the
financial year 2016.
6) How will we crystallise value?
The company’s competitive positioning in selectedmarket sub-
segments should attract interest from strategic buyers at exit.
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REGISTRATION DOCUMENT 1 ALTAMIR 2016