Company overview

Nexis Fibers is one of the worldwide leaders in the industrial and specialty fibers market.  Headquartered in Switzerland, Nexis Fibers operates five production sites located in Germany, Latvia, Poland, Slovakia and Switzerland and employs c.1,200 employees.  Nexis Fibers generated sales of € 220 million in 2006

Butler Capital Partners is a leading French private equity investor, focused on complex transactions, special situations and turnarounds investments 

Events leading to the transaction

Butler Capital Partners was involved in the auction process for the industrial and other activities carved-out from Rhodia.  These consisted of the shares and assets of several legal entities regrouping the activities of Rhodia Industrial Yarns and Technical Fibers in Germany, Switzerland, Latvia, Slovakia and Poland.  (The entity was renamed Nexis Fibers following the transaction)

Following their first round indicative offer, Butler Capital Partners invited Close Brothers to act as their adviser in connection with seeking the acquisition financing for the transaction

Solution

Working to an extremely tight timetable Close Brothers contacted fifteen institutions, with only one week to ten days provided to institutions to submit both a detailed termsheet and a support letter on a complex international deal

Close Brothers was successful in achieving several financing proposals by the deadline set, including debt quantums in excess of what most people thought would be achievable.  These proposals proved to be crucial for Butler Capital Partners to achieve exclusivity following their second round bid

During exclusivity, Butler Capital Partners were able to further diligence and obtain comfort on the business.  Using this information, Close Brothers invited the existing interested parties to resubmit offers as well as opening up the process to further financial institutions

As a result, Butler Capital Partners was able to close the deal with an extremely attractive financing package, including very attractive debt quantum and pricing

Three months following the deal, Close Brothers was retained by Butler Capital Partners to advise them on the refinancing of another of their portfolio companies