3i-backed NORMA in € 669.0 million IPO

08 Apr 2011

3i, an international investor in private equity, infrastructure and debt management, and funds managed by 3i, today announce the successful Initial Public Offering (‘IPO’) on the Frankfurt Stock Exchange of 3i-backed NORMA Group AG (‘NORMA’), a global market and technology leader in attractive niche markets for engineered joining technologies.

NORMA offered 18.4 million shares under the Global Offering, raising € 386.4 million, including full overallotments, implying a market capitalization of the company of €669.0 million. The company will use the proceeds to partially repay its liabilities as well as strengthen its financial flexibility to support further organic and acquisitive growth. The offer was multiple times oversubscribed.

In order to provide liquidity upon flotation, 3i and funds managed by 3i have reduced their stake by 46 percent from originally 73 percent before capital increase. After the capital increase of € 147.0 million and full execution of greenshoe, 3i and funds managed by 3i will retain a 31 percent stake.

Ulf von Haacke, Partner and Managing Director 3i Germany said: “We are proud to have contributed to NORMA’s impressive growth during the last five years through using our international network and sector knowledge. Since our investment, NORMA has diversified its business and has developed into a global company and a leader in its market.”

3i formed NORMA Group by investing in Rasmussen Group in 2006, a leading supplier for joining technology mainly focussed on German and European customers, and subsequently merging it with its Swedish portfolio company ABA, which predominately served the industrial and technical distribution sectors. Subsequently, the management team was significantly strengthened with the appointments of a CEO, CFO and COO, and the further acquisitions of Breeze and R.G.RAY in the US enabled the company to expand its product range and strengthen its international foot print.

The company also increased its capabilities in product development and strengthened its presence in developing markets with new plants in India, China, Thailand, Mexico, Russia and Serbia. Over a five year period, management and 3i realised their initial investment strategy of building a global market leader through accelerated organic growth, strategic acquisitions and margin expansion.

Ulf von Haacke said: “During our investment, the company more than doubled its EBITDA margins and reduced its capital intensity thereby making its financial profile more attractive to institutional investors. Today’s successful IPO reflects the impressive achievements of NORMA’s management and the future prospects of the group.”

Since the formation of NORMA, 3i has actively contributed to transforming a regional automotive supplier into a global, market leading business in the joining technology industry through supporting the company’s international expansion and industry diversification, as well as supporting operational improvements such as lean management, procurement and pricing.

About 3i
3i is an international investor focused on Private Equity, Infrastructure and Debt Management, investing in Europe, Asia and North America. Our competitive advantage comes from our international network and the strength and breadth of our business relationships. These underpin the value that we deliver to our portfolio,shareholders and fund investors.
www.3i.com

About NORMA Group
NORMA Group is a global market and technology leader in attractive niche markets for engineered joining technology offering more than 35,000 high quality products and solutions to approximately 10,000 customers in 80 countries.

NORMA Group was formed in 2006 through the merger of the German Rasmussen Group, a manufacturer of connecting and retaining elements and fluid conveying conduits which was founded in 1949, and the Swedish ABA Group, a European leader in engineered joining technologies.

Since NORMA Group’s formation, UK-based international investor 3i Group and funds managed by 3i have been the main shareholder, with a 73 percent stake prior to NORMA Group’s IPO. In 2010, NORMA Group generated revenues of around €490 million with approximately 3,500 employees.

The company manufactures and sells a wide range of innovative engineered joining technology solutions in three product categories (clamp, connect and fluid) using two distinct ways-to-market: Engineered Joining Technology (“EJT”) and Distribution Services (“DS”). In EJT, NORMA Group provides original equipment manufacturers with mission-critical solutions that are engineered to meet their specific needs. In DS, NORMA Group leverages its worldwide manufacturing and distribution network to provide high-quality standardized products under its well known brands ABA®, BREEZE®, Gemi®, NORMA®, R.G.RAY®, Serflex®, Serratub®, TERRY® and Torca®.

Headquartered in Maintal, Germany, NORMA Group operates a global network of 17 manufacturing and distribution facilities as well as ten sales and distribution sites
across Europe, the Americas and Asia Pacific.

Disclaimer
This announcement does not contain or constitute an offer of, or the solicitation of an offer to buy or subscribe for, securities.

This release is not an offer of securities for sale in the United States of America. Securities may not be offered or sold in the United States of America absent registration or an exemption from registration under the U.S. Securities Act of 1933, as amended (the “Securities Act”). Any public offering of securities to be made in the United States of America would be made by means of a prospectus that could be obtained from NORMA Group AG and that would contain detailed information about the company and management, as well as financial statements. There will be no public offer of the securities in the United States of America.

Subject to certain exceptions, the securities referred to herein may not be offered or sold in Australia, Canada or Japan or to, or for the account or benefit of, any national, resident or citizen of Australia, Canada or Japan.