Hengelhoef: Successful Exit by Down2Earth from HCJ to Tremco Construction
Deal News | Jan 13, 2025 | Down 2 Earth Capital NV
The article announces the successful sale of Hengelhoef Concrete Joints (HCJ) by Down2Earth Capital to Tremco Construction Products Group Europe. The sale, finalized on December 27, 2024, marks a significant achievement for Down2Earth, which invested in HCJ in 2018. Under D2E’s stewardship, HCJ experienced considerable growth through a focused strategy on product innovation, international sales expansion, and operational improvements. Key to this growth was the introduction of strengthened management, leading to increased sales and profitability. HCJ, a leader in producing armoured expansion joints for industrial floors, is renowned for its innovative solutions like the Cosinus Slide Joint. The management team, including CEO Raf Jaenen, will continue to lead HCJ under its new ownership, aiming to further global sales and business scaling. This exit reflects a strong return for Down2Earth, aligning with the firm’s strategic objectives. Legal and advisory services were provided by Monard Law for Down2Earth and Liedekerke, Calfee, Halter & Griswold LLP, and PwC for Tremco CPG.
Sectors
- Private Equity
- Construction Materials
- Legal Services
Geography
- Belgium – Down2Earth Capital and HCJ are based in Belgium, and the firm specializes in small and medium-sized transactions in this region.
- Europe – Tremco Construction Products Group Europe is the acquiring entity, and HCJ maintains a substantial export footprint within Europe.
Industry
- Private Equity – The article focuses on the activities and strategies of a private equity firm, Down2Earth Capital, in relation to its investment and successful exit from HCJ.
- Construction Materials – HCJ is involved in producing armoured expansion joints for industrial floors, thus falling under the construction materials industry.
- Legal Services – Various legal and advisory firms were involved in facilitating the transaction between HCJ and Tremco CPG.
Financials
- Undisclosed – The financial terms of the deal between Down2Earth and Tremco CPG for HCJ were not disclosed, but it was noted that the returns for Down2Earth exceeded its objectives.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Down2Earth Capital NV | Seller | Company | A private equity firm that invested in HCJ in 2018 and successfully exited through a sale to Tremco CPG. |
| Hengelhoef Concrete Joints (HCJ) | Target Company | Company | A producer of armoured expansion joints for industrial floors, headquartered in Genk, Belgium. |
| Tremco Construction Products Group Europe | Buyer | Company | A Europe-based division of Tremco, a firm that acquired HCJ in this transaction. |
| Ivo Marechal | Managing Partner, Down2Earth Capital | Person | Overseeing and commenting on the successful exit of HCJ. |
| Raf Jaenen | CEO, HCJ | Person | Current CEO who led HCJ under Down2Earth and will continue under Tremco CPG ownership. |
| Albert Klingeleers | Founder and Retiring Chairman, HCJ | Person | Founder reflecting on the journey and expressing pride in the successful transition. |
| Monard Law | Legal Advisor to Down2Earth | Company | Provided legal advisory services to Down2Earth during the transaction. |
| Liedekerke, Calfee, Halter & Griswold LLP | Legal Advisor to Tremco CPG | Company | Provided legal advisory services to Tremco CPG during the transaction. |
| PwC | Advisor to Tremco CPG | Company | Provided advisory services to Tremco CPG during the transaction. |