The Carlyle Group Sells Britax Childcare to Nordic Capital; Revenue Almost Doubled During Carlyle’s Ownership

London – Global alternative asset manager The Carlyle Group today announced that it has sold Britax Childcare, a global manufacturer of premium branded children’s car safety seats, to Nordic Capital. Financial details of the transaction were not disclosed.

Carlyle Europe Partners acquired Britax Childcare from Britax International in October 2005 and focused on the growth of the business through expansion into new markets and diversification of the product range. Carlyle facilitated the company’s development into new geographies, especially in emerging markets as demand for Britax’s high-end products has increased, and enhanced its online presence. Carlyle has invested to develop innovative new products, including the company’s launch into wheeled goods and travel systems.

The company is now a top global premium consumer brand for children, synonymous with the highest quality and uncompromising safety. Carlyle’s continuous investment in the latest research and technology at Britax Childcare has ensured that the products have set the top standards in safety and design, evidenced by the development and promotion of ISOFIX and other technologies for maximum safety and ease of installation of children’s car seats. Earnings have more than doubled under Carlyle’s ownership.

Karl Kahofer, CEO of Britax Childcare, said, “We are delighted to have partnered with Carlyle, which has supported Britax’s transformation from a regional to a global business during its five years of ownership, in which time our revenues have approximately doubled. Their understanding of our business from a consumer, retail and manufacturing perspective, has been invaluable to the company and fundamental to the growth and success we have enjoyed. We are excited about the partnership with Nordic Capital due to their excellent track record and long experience in consumer investments. Car safety for children is an area where parents, regulators and the global auto industry are all concerned to provide a safe environment for children. Britax Childcare is well positioned to play an important role in this development”.

Andrew Burgess, Managing Director at The Carlyle Group said, “Britax is an outstanding example of a company that delivers strong growth through innovation and excellence in execution. Furthermore, it is a business underpinned by regulatory and legislative drivers that have increased demand for Britax products, especially in emerging markets, as stricter child car seat regulations have been adopted. We are proud to have supported the company’s growth through our investment and sector expertise. We are particularly delighted with this outcome. Nordic Capital is an excellent partner for the business – we wish the company and its new shareholders every success in the future.”

Hans Eckerstrom, Partner at Nordic Capital said “Britax Childcare has demonstrated exceptional market performance during the downturn and we are confident in the continued high growth potential of the company. The company is renowned for manufacturing top quality products at the highest standards of safety, which are also aesthetically appealing to consumers. We are now particularly well-positioned to take this company to the next level due to our specific sector expertise with Thule Group, which we have owned since May 2007 and is a similar business to Britax Childcare. We look forward to working with the talented management team to help the company reach its full potential, expanding the business internationally both through organic growth and acquisitions.”

The investment in Britax was made through Carlyle Europe Partners, II a €1.8bn fund that launched in 2003. This is Carlyle’s ninth buyout transaction in Europe in 2010 following the exits of AZ Electronic materials (IPO), FRS Global (sale), and Otor (sale), and acquisitions of B&B Hotel Group, Companeo, Gianonni, NBTY (parent company of Holland and Barrett) and Commscope.

Carlyle was advised by Rothschild and Latham & Watkins. Nordic Capital was advised by Barclays Capital, Lazard and Ashurst.

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About Britax Childcare
Britax Childcare is headquartered in the UK with operations in North America, Australia, and Germany. The company designs, tests, assembles and markets a range of premium child car safety seats and wheeled goods. Britax Childcare has leading consumer brands in each of its principal markets including Europe (Britax® and Römer®), Australia (Safe‘n’Sound®, Steelcraft®, Babylove® and others) and the US (Britax®). Britax Childcare’s products are distributed through independent specialist retailers, multiple retail chains and vehicle OEMs. It has market leading expertise in vehicle occupant safety arising from its heritage in automotive components. Britax Childcare is the leading manufacturer and supplier in the premium segment of child car safety seats.

About Nordic Capital
Nordic Capital Private Equity Funds have invested in large and medium sized companies, primarily in Northern Europe, since 1989. Through committed ownership and by targeting strategic development and operational improvements, Nordic Capital creates value in its investments. Nordic Capital Fund VII has EUR 4.3 billion in committed capital principally provided by international institutional investors. Nordic Capital Fund VII invests in companies in Northern Europe and in selected investment opportunities internationally. Nordic Capital Fund VII is based in Jersey, Channel Islands and is advised by NC Advisory AB in Sweden, NC Advisory A/S in Denmark, NC Advisory Oy in Finland, NC Advisory AS in Norway, NC Advisory GmbH in Germany and NC Advisory (UK) LLP in the United Kingdom.
www.nordiccapital.com

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