Bloomberg News

KKR to Buy Capital Safety From Arle Capital for $1.1 Billion (1

November 30, 2011

(Adds purchase details in second and third paragraphs.)

Nov. 28 (Bloomberg) -- KKR & Co., the private-equity firm that acquired most of Samson Investment Co. last week, agreed to buy Capital Safety Ltd. from Arle Capital Partners LLP for $1.12 billion. The deal is expected to close in January.

KKR beat rival Cinven Ltd. in the process to buy the U.K.- based company, people familiar with the matter said. Capital Safety, which has U.S. offices in Red Wing, Minnesota, provides equipment that protects workers from falls, such as harnesses and lanyards.

Arle acquired Capital Safety from London-based Electra Partners in June 2007. The sale to New York-based KKR represents a return of 2.7 times Arle’s original investment as Capital Safety’s revenue doubled to $350 million, London-based Arle said today in a statement.

“We believe fall protection is particularly attractive because of the segment’s weighting towards energy and infrastructure and because of the potential for future growth due to further development of safety regulations,” Pete Stavros, a director in KKR’s industrials group, said in a statement.

Morgan Stanley & Co. advised KKR and Latham & Watkins LLP acted as legal counsel. UBS AG and Morgan Stanley committed financing for the deal in the form of senior secured credit facilities. UBS, Simpson Thacher & Bartlett LLP and others advised Arle Capital.

KKR, founded in 1976 and run by Henry Kravis and George Roberts, sealed the biggest leveraged buyout of the year and a record for an oil and gas producer when it agreed Nov. 23 to buy most of Samson for $7.2 billion, according to data compiled by Bloomberg.

--With assistance from Anne-Sylvaine Chassany in Paris. Editors: Josh Friedman, Steven Crabill

To contact the reporter on this story: Devin Banerjee in New York at dbanerjee2@bloomberg.net

To contact the editor responsible for this story: Christian Baumgaertel at cbaumgaertel@bloomberg.net


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