January 27 (SeeNews) - AMC Capital IV SCSp, a private-equity mezzanine fund run by Luxembourg's AMC GP, has provided long-term capital to support the carve-out of Slovenian technical textile producer Fomtech from its parent Fori Group, an investment advisor on the deal said.
“AMC IV will have a significant minority shareholding following the transaction,” Accession Capital Partners (ACP), which advised the fund, said in a press release earlier this week.
The transaction included a mezzanine facilities agreement, the underlying security package, and the acquisition of a significant minority stake in the Fori group's textile division by the fund, Austrian law firm Schoenherr, which was legal advisor to AMC and ACP on the deal, said in a separate press release. The investment facilitated the restructuring of the Fori group's existing debt of some 25 million euro ($27 million), it added. The closing occurred on January 5.
Fomtech is producer of branded technical textile products in the infrastructure cable and automotive industries and boasts a strong position in its niches of cable malfunctioning detection and seat comfort. The company serves clients in nearly 60 countries from its manufacturing sites in Slovenia, Serbia and China.
Fori Group is an international automotive, cable, and home appliance industry supplier.
This restructuring, being one of the first major mezzanine financing deals in Slovenia, should allow Fori to continue developing and grow even further in the years to come, Serbian law company Karanovic & Partners, which advised Fori in its financial restructuring, said in a separate statement. According to Karanovic, the restructuring process was carried out with the support of financing provided by mezzanine partner ACP Group via AMC Capital IV Fortuna.
($ = 0.918 euro)