Fortis Private Equity invests in Arets Graphics NV in a partial owner's buyout (26/06)Fortis Private Equity (‘FPE') acts as an important minority equity provider in the shareholder restructuring of Belgian company Arets Graphics NV (‘Arets').

Arets specialises in the development and production of UV curing inks and varnishes. Next to its UV activities, Arets distributes conventional and specialised inks and related products for the graphic industry. It has approximately 100 employees and expects annual sales of about EUR 33m in 2007.

Activities are conducted out of the company's headquarters in Niel, Belgium. Arets Graphics sells its products in over 80 countries around the world on all continents. It offers tailor-made solutions to its customer's diversified ink needs and develops in-house innovative products for the continuously evolving UV needs in the graphic industry.

FPE is pleased to team up with Arets' very experienced management team, which is highly committed to further implementing its growth strategy in a cost-effective way based on continued process innovation and client diversification.

The current management team consists of Luc Van Doorsselaere, who joined the company in 2000 and has built the company to a world wide leader in UV Inks and Coatings and Erwin De Keyser (member of the majority shareholder family).

Luc Van Doorsselaere said: “As a family company managed professionally, we have been growing our company thanks to a continued focus on quality, service, innovation and reactivity. We continuously invest and have built without doubt the most modern factory for UV inks worldwide. Starting in 2000 with a EUR 7 million turnover and without UV, we expect this year at least EUR 33 million, all of the growth being in UV, up 22% over last year.”

Erwin De Keyser said: “We are very pleased to team up with Fortis Private Equity as a partner supporting our growth to the next level and be ready for global challenges and acquisitions. The current shareholders remain majority shareholders and as such we are convinced that our clients will be equally positive about the entrance of Fortis Private Equity as a co-shareholder enabling growth as an independent company.”

Brigitte Boone, CEO Investment Banking comments: "The international buyout market has seen quite a number of transactions in the ink sector in recent years.. The partial buyout of Arets Graphics is a good example of Private Equity playing a role in assisting ambitious companies and strong management teams in growing their business beyond a certain level. Fortis with its international network is the right partner for a company with increasing international activities like Arets."

Arets was assisted in this transaction by Deloitte Corporate Finance, as financial advisor, and Laga, as legal counsel.

FPE was advised by Linklaters on legal matters, Ernst&Young on financial and tax matters and Pira International on commercial matters.

About Arets:

Arets was founded in 1938 by J. Arets, as a supplier to the printing business and acquired in 1999 by the NexT Invest group. Since 2000 and the arrival of Luc Van Doorsselaere, Arets is focusing on the manufacturing of UV inks and coatings, which represent now approximately 75% of its turnover. The rest of its sales are mainly conventional and specialty inks.
Arets is continuously investing in research and new technologies and the company has the most efficient and modern production plant for UV products in the world.
By developing and efficiently producing UV inks and coatings, Arets' aspiration is to become the preferred UV supplier of graphic companies that care about quality and reliability worldwide. In this respect, Arets is and wants to become even more a challenger to the large ink companies in the sector. More info is available on www.arets.com

About Fortis:

Fortis is an international financial services provider engaged in banking and insurance. We offer our personal business and institutional customers a comprehensive package of products and services through our own channels, in collaboration with intermediaries and through other distribution partners. With a market capitalisation of EUR 40.3 billion (31/05/2007), Fortis ranks among the twenty largest financial institutions in Europe. Our sound solvency position, our presence in 50 countries and our dedicated, professional workforce of 60,000 enable us to combine global strength with local flexibility and provide our clients with optimum support. More information is available on www.fortis.com

Fortis Merchant Banking:

Merchant Banking is the internationally operating wholesale bank of Fortis. As a focused and worldwide organisation, we provide tailored financial services to corporate and institutional clients. We are active in several areas, including treasury, fixed income, energy, commodities and equities (including derivatives and structured products), corporate finance, capital markets, cash management, asset financing, project finance, private equity and structured credits. We also specialise in fund administration, global custody, securities lending and clearing services.

Fortis Private Equity

Part of Fortis Merchant Banking, manages all of Fortis's private equity assets. Its total direct and indirect investment portfolio amounts to upwards of EUR 1.5 billion. Private Equity teams based in Belgium, the Netherlands, France, Spain and Asia concentrate on direct investments. Fortis Private Equity is also building up a diversified fund-of-funds portfolio through indirect investments, principally in buyout and capital venture funds in North America, Europe and more recently in Asia.