Case | HBS Case Collection | February 2004 (Revised September 2006)

Apax Partners and Xerium S.A.

by Josh Lerner, G. Felda Hardymon and Ann Leamon


In 2002, Apax Partners had to decide whether to accept a less-than-perfect offer for one of its portfolio companies or to refinance it. This company, a maker of paper industry consumables with a global presence, had been purchased in 1999 and performed extremely well since then. Despite being a solid, cash-generative operation, it didn't excite a lot of interest in the market. An early exit at a good multiple would be helpful for Apax's current fund and future fund-raising efforts, whereas refinancing would allow Apax to take some money off the table and share in future upsides. Which is the better choice?

Keywords: Leveraged Buyouts; Globalized Markets and Industries; Business Exit or Shutdown; Borrowing and Debt; Investment; Cash Flow; Pulp and Paper Industry;


Lerner, Josh, G. Felda Hardymon, and Ann Leamon. "Apax Partners and Xerium S.A." Harvard Business School Case 804-084, February 2004. (Revised September 2006.)