Altamir - 2018 Registration document

1

Business description and activities

Presentation of the Company

www.skfiresafetygroup.com

1) Business description SK FireSafety Group specialises in fire safety and aeronautical safety equipment maintenance. It manufactures and maintains extinguishers, hydrants andother fire safetyproducts anddesigns fire detection and extinction systems for critical environments. Based in theNetherlands, thegroup is the resultof thecombination of several companies in the sector (ten acquisitions between 2010 and 2014) operating in the Benelux countries, in the United Kingdom and in Norway. 2) Investment rationale The fire safety market offers robust fundamentals and recurring revenues. SK FireSafety has developed specific know-how in the sale and maintenance of critical safety equipment in both the fire safety and the aviation industries. The companyhas a leadershipposition in the Netherlands, its domestic market, where it is positioned at the high end. The company has successfully participated in consolidating this market and is well poised to pursue other acquisitions. SK FireSafety has a profitable, cash-generative business model, a large customer base and strong international growth potential in its various market segments. 3) Sources of value creation SK FireSafety Group aims to become a major player in fire safety in Europe. To accomplish this, it is seeking to strengthen its leadership in its historical markets and carry out targeted acquisitions elsewhere in Europe. In addition to these acquisitions, international expansion in selected operations (e.g. Products) and robust cash generation are driving value creation.

4) Achievements Since investment, SKFireSafetyhas expanded its serviceofferings in the Aviation segment through the successful acquisition of Team Aero Services and most recently through the acquisition of Safetech in the United States. Thecompanyhas significantly improved theoperational efficiency of its First Intervention Solutions division inNorway, whichwas in a turnaround phase at the time of acquisition. In a difficult Oil & Gas market, SK FireSafety has restructured its operations and implemented significant cost savings. Thedivision has returned to profitability. The group has successfully rolled out its automation services across all the regional brands of its First Intervention Solutions division in theBenelux countries, which has improvedprofitability. 5) Performance In 2018, SKFireSafety demonstrated its ability togenerate growth across all business units (except Oil & Gas). The rationalisation of the company and its businesses has been successful, and, since 2017, SK FireSafety is back on the path to growth. Its revenue rose by 14% to €124m and its EBITDA was up 28% (of which 20% organically) compared to 2017, thanks to the good performance of its recurringbusiness activities across all business units. 6) Exit The company’s competitive positioning in selected market sub- segments should attract interest from strategic buyers at exit. In December 2018, it signed a definitive agreement to sell its AeroSafety division.

DATE OF INVESTMENT

PORTFOLIO AT FAIR VALUE

SECTOR

COUNTRY

RESIDUAL COST

FAIR VALUE

2014

31.5 m

45.3 m

4.5 %

€

€

N E T H E R L A N D S

30 Registration document ALTAMIR 2018

www.altamir.fr