KKR and TIGA Investments buy office supplier Executive Center
(Reuters) – A consortium led by private equity firm KKR and investment firm TIGA Investments will buy office space provider The Executive Center (TEC), the companies said in a statement on Tuesday.
“As part of the transaction, funds advised by HPEF Capital Partners and CVC Capital Partners will exit their investments in the company (TEC). Members of TEC’s management team will continue to own shares in the company, ”they added.
Financial details of the transaction were not disclosed.
TEC founder and chief executive Paul Salnikow said on Tuesday the company’s business increased sevenfold while HPEF and CVC were investors.
CVC declined to comment on the transaction. HPEF did not immediately respond to a request for comment.
Founded in 1994, TEC provides high-end flexible office space in more than 150 centers in 32 cities and 14 markets, including Australia, Greater China, India, Japan, Southeast Asia, Sri Lanka, South Korea and the Middle East, with higher annual revenue of $ 237 million, the statement said.
HPEF held 70% of the company while CVC held 20%. The management of TEC held the remaining shares.
The two private equity firms suspended the process of selling their shares in TEC in 2019, fearing that its exposure to Hong Kong could weigh on its valuation due to violent protests there. (here)
Hong Kong accounted for about 30% of its earnings before interest, taxes, depreciation and amortization (EBITDA), Reuters reported.
TEC’s Salnikow said in April that its EBITDA rose to $ 46.1 million in 2019, from $ 32.3 million in 2016, with revenue increasing from $ 140.74 million to $ 235.75. million dollars over the same period.
He did not provide more recent figures.
Reporting by Kanishka Singh in Bengaluru and Kane Wu in Hong Kong; Editing by Clarence Fernandez and Barbara Lewis