Linklaters advises The Carlyle Group on its acquisition of Acrotec Group

Linklaters has advised global investment firm The Carlyle Group on the financing of its acquisition of Acrotec Group, in partnership with its management team, from Castik Capital. Acrotec is a leading independent supplier of high precision industrial applications to the watchmaking and MedTech industries as well as other high value industrial end markets, such as Automotive, Electronics and Aerospace. The Carlyle Group will support Acrotec in accelerating its growth plan through the development of its existing platform and through acquisitions.

The CHF 413.5 million financing package included an ESG-linked margin ratchet for the term and revolving credit facilities, with the relevant ESG criteria. This included any environmental, social and/or governance criteria or related non-financial metric, such as, for example, any criteria or metric related to energy usage, recycling practices, pollution, carbon footprint, waste, natural resource conservation, benefactor to key services and technology, artificial intelligence, development of green products, climate change, Covid-19 and other sustainable practices.

The financing also includes an innovative use-of-proceeds margin ratchet on the borrower's revolving credit facility, which allows Acrotec to achieve a cost saving if using proceeds under to exclusively finance or re-finance a project or transaction for any green purpose.

Equity for the investment will be provided by Carlyle Europe Partners (CEP) V, a €6.4bn fund investing in European upper mid-market opportunities across a range of sectors and industries.

The Linklaters team was led by Banking Partner Oliver Sceales and supported by Managing Associate Daniel Peach and Associates Hannah Brellisford and Shruti Subramaniam. The London based Linklaters team was supported by colleagues in the Luxembourg office on matters of Luxembourg law.