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WestLB AG has committed € 200 million in private equity financing to the investment consortium acquiring the French electrical group Legrand. The consortium led by Wendel-Investissement and Kohlberg Kravis Roberts & Co. (KKR) also includes private equity funds managed by Goldman Sachs and HSBC as well as members of Legrand´s founding families. The Legrand acquisition was made possible by Schneider Electric S.A.´s decision to abandon the contemplated merger with its competitor. The purchase price for 98.04% of the capital and 98.2% of the voting rights amounts to € 3.63 billion, which corresponds to € 3.7 billion for 100%. This makes the transaction the largest leveraged buyout in continental Europe in recent years. € 1.76 billion in equity capital for the acquisition was financed by the above members of the consortium. Additional € 2.43 billion in financing was provided in the form of new external debt to the company, of this € 1.83 billion was structured in bank credits and € 600 million in mezzanine financing. The acquiring consortium intends to further strengthen Legrand´s market position and build on its foundation of an innovative product portfolio and global expertise. In 2001, Legrand employed some 27,000 people worldwide and generated annual sales of €3.1 billion in the market for electrical equipment, sensors, etc. with a focus on the low-voltage sector.

Participation in the above transaction permits WestLB to further strengthen its private equity activities as a core business segment and expand its position as a major provider of private equity. WestLB Equity Investments provides equity capital to both medium and large-sized businesses for the financing of strategic growth investments. WestLB´s industrial investment portfolio currently totals € 3.7 billion and includes stakes in TUI, RWE, ThyssenKrupp, Fresenius, Madaus as well as more than 60 medium-sized companies and strategic funds such as West Private Equity, West Steag Partners and Merlin Biosciences.