The Carlyle Group and Eurazeo Sell Terreal to LBO France for €860 Million

Paris, France - The Carlyle Group and Eurazeo today announce an agreement has been signed for the sale of Terreal to LBO France for an enterprise value of €860 million. The sale remains subject to the agreement of the relevant anti-trust authorities. This announcement follows the statement given on July 13 when Carlyle and Eurazeo announced they had entered into exclusive negotiations with LBO France.

Terreal makes clay construction products used for roofs, structural work, wall claddings and decoration environmental protection. It is France’s second-largest manufacturer of clay tiles, with a 35-percent market share in 2004.

The Carlyle Group and Eurazeo bought Terreal from Saint-Gobain. Carlyle owns 60% of the company and Eurazeo 40%.

Benoît Colas, Managing Director at The Carlyle Group based in Paris said, "We are very pleased with our investment in Terreal. This success is largely due to the strengths of the Terreal business and the great work done by management since the acquisition."

Gilbert Saada, Member of Eurazeo’s Executive Board said, "Terreal is a solid company with steady revenues and good market positions. It has made outstanding progress over the last two years thanks to focused investments and quality management. It has been a pleasure to work in partnership with Carlyle and Terreal’s team."

The Carlyle Group is one of the world’s leading private equity firms with over $30 billion under management. In Europe, Carlyle has a team of 75 investment professionals based in six offices across Europe, in Paris, Munich, Milan, Barcelona, Frankfurt and London. Carlyle has completed 22 buyout transactions in Europe, including eight in France. The investment in Terreal was made from Carlyle Europe Partners II. Other investments in the fund include Avio, the Italian aerospace company, Saprogal, the animal food distributor, HT Troplast, manufacturer of vinyl profiles and AZ Electronic Materials, a specialty chemicals business.

With diversified, high quality, assets and a market cap above 4 billion euros, Eurazeo is the leading listed investment company in France. Eurazeo takes stakes in non-quoted companies, primarily within the French speaking sphere, and its strategy is to be either the majority shareholder and principal manager, or the leading shareholder, of the companies it invests in: Rexel, world leader in professional distribution of electrical equipment, Eutelsat, Europe’s number one satellite operator and Fraikin, the leading French commercial vehicle leasing company. In addition, Eurazeo has just finalised the acquisition of B&B hotel chain.

Eurazeo is quoted on Eurolist by Euronext Paris (code ISIN: FR0000121121, code Bloomberg: RF FP, code Reuters: EURA.PA).

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