Apax Partners and Xerium S.A.
Posted: 30 Dec 2006
Date Written: February 24, 2004
Abstract
SUBJECT AREAS: Decision making, Financing, Leveraged buyouts, Multinational corporations
CASE SETTINGS: United States; Paper industry
In 2002, Apax Partners had to decide whether to accept a less-than-perfect offer for one of its portfolio companies or to refinance it. This company, a maker of paper industry consumables with a global presence, had been purchased in 1999 and performed extremely well since then. Despite being a solid, cash-generative operation, it didn't excite a lot of interest in the market. An early exit at a good multiple would be helpful for Apax's current fund and future fund-raising efforts, whereas refinancing would allow Apax to take some money off the table and share in future upsides. Which is the better choice?
Suggested Citation: Suggested Citation
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