PARIS May 6 Private equity firm Bridgepoint has agreed to buy sealing product technology specialist Flexitallic Group from France's Eurazeo in a deal valuing the business at 450 million euros ($588 million), the companies said.
Eurazeo, which acquired a majority stake in Flexitallic in 2006, said in a statement on Monday that it would reap 145 million euros in cash from the sale, representing a 95 million capital gain.
The transaction is the latest instance of one buy-out house selling a company it owns to another, a practice which has dominated deal making in Europe so far this year, worrying investors that firms are just recycling deals among themselves.
Bridgepoint will buy a majority stake in the company, whose products serve the energy industry. Its management, including Remi Toledano, chief executive since 2010, will hold the rest.
Flexitallic's main business units are based in France, the United States, the UK and Canada, with annual sales of 210 million euros.
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