Monthly Archives: May 2018

Sivantos and Widex merge to create global hearing aid leader

eqt

  • Intention to merge leading hearing aid companies Sivantos and Widex into a top-three contender globally with a comprehensive, multi-channel sales and distribution platform in more than 125 markets and combined revenues of approximately EUR 1.6 billion
  • Combined businesses to become a global R&D powerhouse as well as an innovation leader with approximately 800 specialists and abundant resources to further accelerate innovation of hearing instruments and tailored solutions including by leveraging its leading digital platform
  • Ambition to redefine the competitive landscape for hearing aids serving both existing users as well as improving the offering and access to the millions with hearing impairments
  • Exciting career opportunities for the more than 10,000 employees in both organizations across the globe

Lynge, Denmark and Singapore May 16, 2018: EQT funds, owners of Sivantos Pte. Ltd. (“Sivantos”), and the Tøpholm and Westermann families, owners of Widex A/S (“Widex”), today announced that they have agreed terms to merge the two companies. The strategic merger of equals will create a global hearing aid leader generating combined revenues of approximately EUR 1.6 billion and employing more than 10,000 people worldwide. The transaction values the combined entity at an enterprise value of more than EUR 7 billion.

The merger aims at accelerating growth, strengthening market penetration and enhancing efficiencies to enable additional investments into R&D and supply chain. This will allow the merged company to expand access to hearing healthcare via its dedicated salesforce through even more innovative solutions across a wide range of hearing needs, increasing the quality of life of millions of people and allowing them to actively participate in social life.

Marcus Brennecke, Partner at EQT Partners and Investment Advisor to the EQT funds, says: “Sivantos has developed immensely during EQT funds’ ownership and now the idea is to create a game changer for the future of hearing. Combining these two innovative companies will change the hearing experience for people with hearing loss across the world. In Widex, we have found an equally strong partner to Sivantos, sharing a passion for enriching the quality of life for people with hearing deficiencies. The combined company presents a unique opportunity for EQT to extend the investment horizon in Sivantos and take part of the next phase of transforming the hearing aid industry. With nearly 170 years of combined experience, Sivantos and Widex will take the lead in developing hearing aid technology for future generations.”

Jan Tøpholm, Chairman of Widex, added: “We and Sivantos share a common vision of giving people unlimited access to a world of sound by providing unparalleled hearing aids and customer services. I am confident that our employees, partners and customers will benefit from this merger as it will allow us to accelerate our efforts to pioneer innovation, quality, manufacturing and customer satisfaction. Further we will expand our geographical footprint and provide exciting career opportunities for our employees across countries and functions. The merger fits with the families’ values and long-term goals for Widex and that’s why we have decided to substantially invest to become long-term owners.”

Global R&D powerhouse and innovation leader

The intended merger will create one of the most innovative R&D teams in the industry backed by financial and strategic capabilities as well as strong digital skills to become a global powerhouse for innovative hearing aids and hearing care solutions. Combined R&D resources include approximately 800 specialists in R&D centers located in Singapore, Erlangen (Germany) and Lynge (Denmark) with more than EUR 100 million in annual R&D spending.

The R&D centers will continue to develop, and innovation will be accelerated to bring more products to markets faster, to regularly update and develop technology platforms and address more types of hearing disabilities with creative, high-tech and user-friendly solutions. Sivantos and Widex have a joint ambition to change the industry paradigm through digitization, customization and next generation services to transform end-user experience and expand access to hearing.

Both companies have a history of being “first movers”. Building on Siemens’ heritage, Sivantos’ most recent accomplishments include Signia Nx™, a game changing hearing aid platform resolving the “own voice” issue by digitally filtering out any noise disturbances thus improving hearing comfort. Sivantos is also a pioneer in digitalization and remote hearing care with its TeleCare solution allowing audiologists to adjust hearing aids remotely in real time. Widex has recently launched the groundbreaking WIDEX EVOKE™ – the first hearing aid to feature advanced machine learning technology in real time, allowing the hearing aid to learn the user’s preferences and share that learning.

Truly global footprint and strong brands

The combined entity will have a comprehensive, multi-channel sales platform spanning more than 125 markets. The current Sivantos and Widex sales teams will continue to serve and further develop both traditional retail channels and innovative online channels. The ambition is to create a truly global provider with a complementary offering and touchpoints reaching more people with hearing aid needs across the world and securing second to none service to customers. Around 700 million people worldwide suffer from different levels of hearing loss of which only around 10% currently use hearing aid devices.

Sivantos offers a diverse portfolio of technologically advanced products. Product brands include Signia, Siemens, Audio Service, Rexton and A&M, while retail and online brands include HearUSA, audibene and TruHearing. Sivantos has a strong presence in the online channel leveraging its digital capabilities through its strategic partnership with audibene and has recently strengthened its US footprint through a strategic partnership with TruHearing.

Widex offers sophisticated hearing aid technology focusing on high-end solutions. The key brand Widex is supplemented by the Coselgi brand and local brands in certain markets. Products are offered via wholesalers to governments, retail chains and independent retailers, while Widex has an established presence in the B2C market with sales via own retail and online channels directly to end-users.

Sivantos and Widex combined will become an even more global and growth-focused organization. By joining forces, the combined business will offer its employees even better prospects to develop professionally across geographies and functions.

The combined entity will be owned by EQT funds (EQT VI, EQT VII and EQT VIII), including co-investors, as well as the Tøpholm and Westermann families of Denmark. The Tøpholm and Westermann families, founders and owners of Widex, will be the largest individual shareholder in the combined entity reflecting their long-term commitment to the company. The merger will combine the strengths of EQT funds’ value creation capabilities in building sustainable companies with the Widex owners’ long-term ownership horizon. The new headquarters will be based in Lynge (Denmark) and Singapore. The Board of Directors and Management will have a balanced representation from both companies.

The transaction is subject to regulatory approvals and other customary closing conditions. The approval process starts today. Until closing, the merger will have no effect on employees, customers or suppliers.

Financing in connection with the merger is provided by J.P. Morgan, Goldman Sachs and Deutsche Bank and is expected to replace existing financing arrangements. Latham & Watkins has acted as financing counsel. Widex is advised by J.P. Morgan, Kromann Reumert and Deloitte. EQT and Sivantos are advised by Freshfields Bruckhaus Deringer, Plesner, PricewaterhouseCoopers and AON. The Boston Consulting Group has provided additional commercial advice.

This press release constitutes a public disclosure of inside information by Auris Luxembourg II S.A. under Regulation (EU) 596/2014 (16 April 2014). This notification was made by Willem-Arnoud Van Rooyen of by Auris Luxembourg II S.A, on May 16, 2018.

This press release is translated into multiple languages for information purposes. In case of a discrepancy, the English version shall prevail.

Contacts
EQT Press office +46 8 506 55 334
Widex Chairman Jan Tøpholm via Point Communications + 45 23 24 72 10
Sivantos VP Corporate Communication, Gert Van Santen +49 152 02874320

About Sivantos Group
The business operations of the former Siemens AG hearing aid division have been combined into the Sivantos Group (headquartered in Singapore) since early 2015. Sivantos can look back on more than 130 years of German engineering and countless global innovations. Today Sivantos is one of the leading hearing aid manufacturers worldwide. With its 5,950 employees, Sivantos’ international sales organization supplies hearing aids and complementary accessories to hearing care specialists and sales partners in more than 120 countries. The owners of Sivantos are EQT along with the Strüngmann family as a co-investor. Sivantos GmbH is a brand license holder of Siemens AG.

More info: https://www.sivantos.com/en/

About Widex
With more than 60 years’ experience developing state-of-the-art hearing technology, Widex (headquartered in Lynge, Denmark) provides hearing solutions that are easy to use, seamlessly integrated in daily life and enable people to hear naturally. One of the world’s leading hearing aid producers, Widex employs around 4,250 people across sales, manufacturing, operations, distribution and R&D in 38 countries, and its products are sold in 105 countries. The current strategy, introduced in 2018, aims at doubling the business in five years. Widex is owned by the Tøpholm and Westermann families, descendants of the founders.

More info: https://global.widex.com/en

About EQT
EQT is a leading investment firm with approximately EUR 50 billion in raised capital across 27 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtpartners.com

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Funds managed by Castik Capital acquire ipan Group and Delegate

Castik Capital

Funds advised by Castik Capital, the European private equity investment firm, have entered into binding agreements to acquire majority stakes in two fast-growing intellectual property management services and software companies, ipan Group and Delegate.

ipan Group, headquartered in Munich, is a rapidly-growing provider of intellectual property management services and software. With offices throughout Europe and the US, and long-standing partnerships with 100+ leading IP law firms, it offers highly transparent, efficient and flexible patent annuity, trademark renewal and European Patent (EP) validation services, as well as extended services such as IP recordals. Ipan Group’s software offering comprises the leading intellectual property management software solutions Unycom, IPfolio and IPSS, which enable both corporate IP departments and IP law firms to efficiently manage their IP portfolios along the entire lifecycle. Through the recent launch of ip-x-change, ipan Group has created an open platform connecting services and software to offer a single point of contact for all IP services to its 450+ clients. Founded in 2004 by Anton Bory, ipan Group is led since February 2018 by CEO Jens Lütcke.

Delegate is a fast-growing administrative support service provider with a very strong capability and reputation in services for EP validations and foreign filings, and a growing presence in IP renewals services and IP recordals. It was formed in 2015 through the merger of Valipat, the Brussels-based leading provider of EP validation and filing services, and Envoy, the Glasgow-based fast-growing IP renewals services provider. With offices in Europe and the U.S., it serves 700+ IP law firms and corporate IP departments with in-house attorneys through an agent network of 170+ leading law firms, covering all jurisdictions of the worldwide IP markets. The company is led by CEO Patrice Durand, who has been involved in Valipat since its foundation as part of IP law firm Gevers Group and subsequent spin-off.

“Castik Capital is excited by this opportunity of acquiring two great companies in the growing IP management services and software market, thereby creating an ideal platform for continued organic growth that will enable both companies to develop and enhance their high-quality suite of products and services.” said Michael Phillips, Investment Partner at Castik Capital.

The two companies are continuing to operate under their own brands and will be led by the existing Delegate and ipan Group management teams, who are all fully on board and highly committed to this exciting project.

“This combination is a game-changer. ipan Group and Delegate share similar customer-centric and innovative DNAs. Bringing together our talented teams and highly complementary service and software offerings will enable us to address increasing business demands from IP professionals around the world.” said Patrice Durand, the CEO of Delegate. “This deal sets us on a unique path to face the exciting challenges of the IP industry.”

“We are excited to join forces with ipan Group and Castik, which will be a step-change in our combined capabilities to serve our clients.” said Envoy’s founder David Kennedy.

“We are excited to partner with Castik to enter into the next phase of growth. The combination with Delegate marks another milestone in our development as a leading global provider along the entire IP management lifecycle.” said Anton Bory, founder of ipan Group.

“Combining our complementary focus areas and capabilities will enable us to deliver an even more attractive offering for our customers going forward, and to do so even more efficiently. We are excited to take this next step to accelerate our joint development in partnership with Castik.” said Jens Lütcke, the CEO of ipan Group.

Castik was advised on the transaction by Marks Baughan Securities, PWC and Skadden, Arps, Slate, Meagher & Flom. Financial details of the transaction were not disclosed.

– ENDS –

About Castik
Castik Capital S.à.r.l (“Castik Capital”) manages investments in private equity. Castik Capital is a European multi-strategy investment manager, acquiring significant ownership positions in European private and public companies, where long-term value can be generated through active partnerships with management teams.

Castik has an investment horizon of up to ten years – longer than most other private equity funds. This enables Castik to focus resources on its portfolio companies and ensure sustainable, long-term value creation.

Founded in 2014, Castik Capital is based in Luxembourg and focuses on identifying and developing investment opportunities across Europe. Investments are made by the Luxembourg-based fund, EPIC I SLP, the first fund managed by Castik, which had its final close at EUR 1.0bn in August 2015.

More information can be found at http://castik.lu

About Delegate IP
Delegate is a fast-growing administrative support service provider with a very strong capability and reputation in services for EP validations and foreign filings, and a growing presence in IP renewals services and IP recordals. It was formed in 2015 through the merger of Valipat, the Brussels-based leading provider of EP validation and filing services, and Envoy, the Glasgow-based fast-growing IP renewals services provider. With offices in Europe and the U.S., it serves 700+ IP law firms and corporate IP departments with in-house attorneys through an agent network of 170+ leading law firms, covering all jurisdictions of the worldwide IP markets. The company is led by CEO Patrice Durand, who has been involved in Valipat since its foundation as part of IP law firm Gevers Group and subsequent spin-off.

More information can be found at https://www.delegateip.com

About ipan Group
ipan Group, headquartered in Munich, is a rapidly-growing provider of intellectual property management services and software. With offices throughout Europe and the US, and long-standing partnerships with 100+ leading IP law firms, it offers highly transparent, efficient and flexible patent annuity, trademark renewal and European Patent (EP) validation services, as well as extended services such as IP recordals. Ipan Group’s software offering comprises the leading intellectual property management software solutions Unycom, IPfolio and IPSS, which enable both corporate IP departments and IP law firms to efficiently manage their IP portfolios along the entire lifecycle. Through the recent launch of ip-x-change, ipan Group has created an open platform connecting services and software to offer a single point of contact for all IP services to its 450+ clients. Founded in 2004 by Anton Bory, ipan Group is led since February 2018 by CEO Jens Lütcke.

More information can be found at https://www.ipan-services.com

Media contact:

Marina Jané Sánchez

CNC

+44 20 3219 8811

Marina.jane-sanchez@cnc-communications.com

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DIF Infrastructure V reaches final close at €1.9 billion

DIF

Schiphol, 15 May 2018 – DIF is pleased to announce the final close of DIF Infrastructure V (DIF V) at the hard-cap of €1.9 billion.

DIF V marks the firm’s sixth successful fund raising for this strategy, following the raising of DIF Infrastructure IV (2015), DIF Infrastructure III (2012), DIF Infrastructure II (2008), DIF Renewable Energy (2007) and DIF PPP (2005). Since 2005, DIF has invested in excess of 165 unique infrastructure projects within this strategy.

Wim Blaasse, Managing Partner of DIF said: “I am extremely proud of this achievement, which is a testament to the strength of the DIF platform. Over the past 13 years the team has been able to generate attractive returns for our investors by consistently investing in high quality projects, enhancing project value during our ownership through active shareholder engagement, as well as by achieving successful realisations. I am confident that we will continue to be successful in our chosen strategy, leveraging our unique global office network and dedicated local teams to complete attractive investment opportunities.”

DIF V targets equity investments in public-private partnerships (PPP/PFI/P3), concessions, regulated assets and renewable energy projects which have long-term contracted or regulated income streams that generate stable and predictable cash flows as well as attractive risk-adjusted returns. The fund targets both greenfield and brownfield projects in primarily Europe, North America and Australasia.

DIF V had an accelerated first close in June 2017, enabling the closing of certain pending investment opportunities, with final close occurring on the 15th of May 2018 at an increased hard-cap of €1.9 billion. DIF V has seen strong backing from both existing and new investors in the DIF platform, receiving commitments from leading institutional investors across the globe.

DIF V has committed to eight investments to date, deploying ca. 30% of the fund. This includes investments in Affinity Water, a UK regulated water asset; Autostrade per l’Italia, a large and diversified portfolio of Italian toll roads; University of Tasmania (UTAS), an Australian student housing concession; Synergy, a portfolio of utility scale wind and solar PV power projects in Australia; and American Roads, a portfolio of five US toll roads. Furthermore, the fund has a strong pipeline of investments across its target sectors and geographies, including both greenfield and brownfield projects.

About DIF
DIF is an independent and specialist infrastructure investor and fund manager, with €5.6 billion assets under management across seven closed-end infrastructure funds and several co-investment vehicles. DIF invests in the global infrastructure market through two differentiated and complementary strategies:

  • DIF Infrastructure V targets equity investments in public-private partnerships (PPP/PFI/P3), concessions, regulated assets and renewable energy projects which have long-term contracted or regulated income streams that generate stable and predictable cash flows. The fund targets both greenfield and brownfield projects in primarily Europe, North America and Australasia.
  • DIF Core Infrastructure Fund I targets equity investments in small to mid-sized infrastructure assets in amongst others the energy, transportation and telecom sectors which generate stable and predictable cash flows that are protected through mid-term contracted income streams. The fund targets greenfield and brownfield investments in Europe, North America and Australasia.

DIF has a team of over 95 professionals in eight offices, located in Amsterdam, Frankfurt, London, Luxembourg, Madrid, Paris, Sydney and Toronto, through which it covers its target markets with dedicated local teams.

For more information, please contact:

Allard Ruijs
Partner, Head of Investor Relations and Business Development
Email: a.ruijs@dif.eu
Website: www.dif.eu

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H.I.G. Capital Acquires Parque Ana Costa, a AAA Office Building in Santos, São Paulo, Brazil

RIO DE JANEIRO – May 15, 2018 – H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with $25 billion of equity capital under management, announced today the acquisition of Parque Ana Costa, in Santos, São Paulo, Brazil.

Parque Ana Costa is a AAA office building with 17,997 square meters of space, located in Santos, an important coastal city in São Paulo state, 50 miles from the capital (São Paulo). The building was delivered in 2013 and is positioned in Ana Costa Avenue, the main business district in Santos.

Fernando Marques Oliveira, Head of H.I.G. Brazil and Latin America said, “We are very excited to complete this off-market transaction. It reflects our belief that the real estate sector in Brazil is set for a meaningful recovery. As such, H.I.G. is looking forward to committing a significant amount of capital to the sector, building on H.I.G.’s extensive local presence and relationships.”

Daniel Nader, Head of H.I.G. Realty in Brazil added, “It was a good opportunity to acquire a very well built and centrally located asset in Santos’ most desirable business district. The building has performed well in recent years and is the location of choice for foreign multinationals in Santos. Additionally, the Port of Santos is likely to benefit greatly from an economic recovery of Brazil and even more so from a recovery of the Oil & Gas industry.”

Financial terms were not disclosed.

About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with $25 billion of equity capital under management*. Based in Miami, and with offices in New York, Boston, Chicago, Dallas, Los Angeles, San Francisco, and Atlanta in the U.S., as well as international affiliate offices in London, Hamburg, Madrid, Milan, Paris, Rio de Janeiro, São Paulo, Bogotá and Mexico City, H.I.G. specializes in providing both debt and equity capital to small and mid-sized companies, utilizing a flexible and operationally focused/value-added approach:

  1. H.I.G.’s equity funds invest in management buyouts, recapitalizations and corporate carve-outs of both profitable as well as underperforming manufacturing and service businesses.
  2. H.I.G.’s debt funds invest in senior, unitranche and junior debt financing to companies across the size spectrum, both on a primary (direct origination) basis, as well as in the secondary markets. H.I.G. is also a leading CLO manager, through its WhiteHorse family of vehicles, and manages a publicly traded BDC, WhiteHorse Finance.
  3. H.I.G.’s real estate funds invest in value-added properties, which can benefit from improved asset management practices.

Since its founding in 1993, H.I.G. has invested in and managed more than 300 companies worldwide. The firm’s current portfolio includes more than 100 companies with combined sales in excess of $30 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

* Based on total capital commitments managed by H.I.G. Capital and affiliates.

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Cinven to acquire JLA

Cinven

Investment in critical asset solutions business in the UK

International private equity firm, Cinven, today announces that it has agreed to acquire JLA (‘the Group’), a leading critical asset supply and services business for laundry, catering and heating in the UK, for an undisclosed consideration.

Headquartered in Ripponden, West Yorkshire, JLA provides commercial laundry, catering and heating solutions to more than 25,000 small and medium-sized enterprise (‘SME’) customers. JLA offers a unique ‘Total Care’ proposition, which combines equipment supply with guaranteed service response times for a contracted monthly fee, providing peace of mind and value for money to a range of customers including care homes, hotels, education providers and housing associations. Founded in 1973, JLA employs around 900 people, including around 300 engineers.

Cinven’s Business Services team identified JLA as an attractive investment opportunity given its:

  • Resilient business model: JLA provides critical services at attractive value for money to a stable and loyal customer base. It also benefits from recurring revenue through long-term contracts;
  • Attractive markets: JLA services markets with attractive growth prospects including care homes, hospitality, and student accommodation;
  • Strong positioning: JLA’s leading position allows it to offer national coverage with leading response times to its customers;
  • Significant growth opportunity: JLA has significant potential for organic growth both in its existing businesses and though expansion into new services. It also has a proven track record of successful acquisitions, having acquired 16 companies in the past five years;
  • Strong financial performance: JLA has delivered double-digit annual revenue and EBITDA growth organically and through acquisition since 2013; and
  • Strong leadership team, led by Stephen Baxter, CEO, which has overseen JLA’s highly successful growth to date.

Rory Neeson, Partner at Cinven, said:

“Under the leadership of its strong management team, JLA is a well-run, defensive business with a diversified and loyal customer base. We believe JLA has an excellent platform to support its further growth ambitions, including its national engineering platform and sales and marketing capabilities.

“Cinven’s strategy is to invest in JLA to support the Group’s organic growth – both in its existing core products of laundry and catering solutions and in new areas, including heating and fire safety. We also see a great opportunity for continued growth through buy and build.”

Daniel Tanase, Principal at Cinven, added:

“JLA’s business model shares key characteristics with many of Cinven’s highly successful Business Services investments, for example CPA Global. Both companies provide mission-critical services to a diverse customer base and in growing markets, and benefit from long-term recurring revenue streams. Cinven invested significantly in CPA Global, particularly to develop its service offering which helped underpin its successful growth. JLA is a great opportunity to replicate this strategy.”

Stephen Baxter, CEO of JLA, commented:

“Our focus as a company is on investing in innovative product offerings and expanding our business through both organic growth and acquisitions. We are delighted that Cinven is investing in JLA to support the next phase of our growth. The Cinven team has significant experience of investing in and building businesses in the UK and internationally and I am certain they will be instrumental in our future successes.

“JLA is proud of the strength and longevity of its customer and supplier relationships which have underpinned the growth of our business so far. We work hard to keep critical areas of our customers’ businesses running smoothly, safely and effectively – whether it’s in the laundry, kitchen or boiler room. Cinven has a reputation for its responsible approach to investment which I am confident will be a further positive for our business including our employees, customers and other stakeholders.”

JLA is the ninth investment from the Sixth Cinven Fund. This transaction follows Cinven’s most recent Business Services investments in Tinsa, a provider of property valuation, analysis and real estate advisory (in August 2016); and Hotelbeds, a global business to business bedbank (in September 2016). Both of these businesses are performing strongly and have undertaken successful buy and build strategies.

In the UK, Cinven’s current investments include NewDay, the UK consumer finance company (acquired in January 2017), and Kurt Geiger, the retailer of footwear and accessories in Europe (acquired in January 2016).

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Cinven Fund 5 to sell Ufinet Group

Cinven

Building on Cinven’s successful TMT and Iberia track records Sale of Ufinet Group generates over €1.1 billion capital gain

International private equity firm, Cinven, today announces that its Fifth Fund has agreed to sell Ufinet Group (‘the Group’), a leading independent fibre network operator in Spain and internationally, to a consortium formed by Antin Infrastructure Partners (which is acquiring Ufinet Spain) and the Sixth Cinven Fund (which is acquiring Ufinet International) for an undisclosed consideration.

Headquartered in Madrid, Ufinet provides fibre infrastructure and transmission services to telecom operators in Spain and international markets. The Group has a fibre network spanning more than 66,800 kilometres across two continents and employs approx. 1,020 people.

Cinven acquired Ufinet in June 2014 from Gas Natural Fenosa (‘GNF’), the largest integrated gas and electricity provider in Spain, for €510 million. Following the complex carve-out of Ufinet from GNF, Cinven’s strategy was to invest in the business to drive growth through internationalisation and significant buy and build activity in a sector and geographic markets where Cinven has significant expertise.

Over the past four years, Cinven has worked closely with Ufinet’s management team to achieve:

  • Execution of a complex carve-out from a Spanish utility provider. With support from Cinven’s Portfolio team, an extensive project was undertaken to create a standalone entity, including creating independent reporting, IT and accounting systems;
  • Significant internationalisation of the business through add-on acquisitions and organic growth with more than two thirds of revenues generated internationally today (vs. less than half at acquisition);
  • Successful value-accretive buy and build strategy, including five acquisitions which have expanded Ufinet’s presence across Latin America including Colombia, Argentina, Chile, Costa Rica, Ecuador, Panama and Paraguay;
  • Significant investment in Ufinet’s fibre network across Spain and international markets, with more than €170 million invested into network expansion, including rolling-out ‘Fibre to the Home’ (‘FTTH’) and ‘lit’ services in metropolitan areas in Spain;
  • Strengthening the management team, with senior appointments including a new Chairman, CFO and Head of Corporate Development; and
  • Strong financial performance with 25% annualised EBITDA growth over the past three years, treble the 8% annualised growth rate before acquisition, driven by strong growth momentum in international markets and robust growth in Spain.

Cinven has a strong and successful track record in the TMT sector, with previous investments including telecom businesses Ziggo in the Netherlands and Numericable in France.

In Iberia, Cinven successfully invested in Amadeus, the global travel transaction processor and provider of advanced technology solutions, and currently owns: Hotelbeds Group, the global travel services provider; Tinsa, the property valuation and advisory services business; and Planasa, a global berries breeding and nursery company. Ufinet is the first divestment since the Cinven Madrid office opened in 2015.

Jorge Quemada, Partner at Cinven, said:

“Cinven’s investment in Ufinet was originated by our Iberia team, alongside our TMT team, reflecting the effectiveness of our sector-regional matrix. In particular, our Iberia team had been monitoring potential asset disposals from large utility providers following numerous electricity reforms in Spain in 2010. We worked for a long time building up our knowledge of the business and the market in order to pre-empt the transaction process, as well as gain the backing of the Ufinet management team.”

Miguel Segura, Principal at Cinven, added:

“Ufinet has been a highly successful carve-out and case study of value creation. Our strategy has focused on accelerating growth in Spain and international markets by investing significantly in the expansion of the network, implementing growth-oriented initiatives and launching new services, for example FTTH; as well as the consolidation of regional fibre operators. We have worked with a first class management team, led by Iñigo García del Cerro, who have been instrumental in driving that strategy.”

Iñigo García del Cerro, CEO of Ufinet, commented:

“Ufinet has demonstrated significant growth over the last four years in our existing Spanish market and particularly across Latin America given the increasing demand for fibre connectivity and capacity, as well as the increased usage and penetration of fixed and mobile broadband.

“Ufinet had been a well-invested business under GNF, but working in partnership with Cinven enabled us to capitalise on the attractive opportunities in high growth markets in Central and South America significantly; as well as accelerate the investment in our fibre optic networks to further expand the business in Spain.”

In the TMT sector, this transaction follows the successful realisation of HEG, the web hosting provider, to GoDaddy Inc. In addition, Cinven most recently realised its investments in CeramTec, the global manufacturer of high performance ceramics, and CPA Global, a leading global IP management and technology company.

The respective sale transactions are not subject to any mandatory conditions (regulatory or otherwise) and both are expected to complete simultaneously in July 2018.

 

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Cinven to acquire Ufinet International

Cinven

Investment in international fibre operator

International private equity firm, Cinven, today announces that the Sixth Cinven Fund has agreed to acquire Ufinet International, the international operations of the leading independent fibre network operator, Ufinet Group, for an undisclosed consideration.

Headquartered and managed in Madrid, Spain, Ufinet International provides fibre infrastructure and transmission services to telecom operators across 14 countries including Colombia, Panama, Guatemala and Costa Rica. Its international connectivity network has more than 49,200 kilometres of optical fibre deployed across major cities in the regions in which it operates. Ufinet International employs more than 900 people.

Cinven’s TMT team believes Ufinet International is an attractive investment opportunity for the Sixth Cinven Fund given:

  • Structural market growth: Ufinet International operates in nascent markets with strong growth trajectories, underpinned by increased usage and penetration of fixed and mobile broadband as well as data centres;
  • Internationalisation opportunity: Ufinet International benefits from significant international expansion opportunities, into new countries including Chile, Mexico and Peru, which are already underway;
  • Buy and build opportunity: Ufinet International represents a platform investment from which a significant pipeline of M&A opportunities can be executed, building on the five successful acquisitions it has made in the region over the past three years;
  • Strong financial performance: Ufinet International has delivered consistent double-digit revenue and profit growth in recent years, driven by significant investment into its network, including ‘lit’ services in urban areas; and
  • World class management team: Ufinet International has a highly capable and experienced management team, led by Iñigo García del Cerro, with whom Cinven has worked successfully in the past.

Thomas Railhac, Partner at Cinven, said:

“We know Ufinet International and its management team extremely well as Cinven’s Iberia and TMT teams were instrumental in the roll-out of the international business after Cinven acquired its parent company, Ufinet Group, from Gas Natural Fenosa (‘GNF’) in Spain in June 2014. Ufinet International has demonstrated strong growth both organically and through several value-accretive acquisitions and there remains a substantial market opportunity. Cinven intends to invest further in the international fibre network as well as execute a highly focused buy and build M&A strategy backing the incumbent, first class, management team. We are delighted to partner again with Iñigo and his team on this exciting opportunity. ”

David Barker, Partner at Cinven, added:

“Ufinet International is uniquely positioned internationally, particularly in Latin America, with a ‘first mover advantage’ in the region, and a proven platform for consolidation having completed five acquisitions in the past three years. The fibre market in this region is in its infancy, with demand for fibre continuing to grow as businesses transition to using high speed connectivity. Cinven has significant experience of successfully consolidating telecom assets with investments such as Ziggo in the Netherlands and Numericable in France; and we now see the opportunity to execute a highly attractive market consolidation internationally through Ufinet International.”

Iñigo García del Cerro, CEO of Ufinet International, commented:

“I have had the privilege of working with the Cinven team since its Fifth Fund’s acquisition of Ufinet Group in June 2014 when Cinven bought the business as a non-core asset from GNF. Cinven is now re-investing in its international operations, Ufinet International, through its Sixth Fund in order to invest further in the business and enable us to capitalise on the significant market opportunity ahead.

In the past three years, Ufinet International has scaled its network internationally, in particular in certain Latin American countries, and is now able to leverage its infrastructure to provide new services to its customers and to consolidate and further grow our strong market position.”

The Sixth Cinven Fund’s most recent TMT acquisition is Allegro, a leading online marketplace in Poland, acquired in January 2017. The transaction is not subject to any mandatory conditions (regulatory or otherwise) and is expected to complete in July 2018.

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ARDIAN sells ESIM Chemicals to Sun European Partners

Ardian

With Ardian’s support, ESIM Chemicals became an independent company and realized significant growth
Frankfurt am Main / Linz, 14 May 2018 – Ardian, a world-leading private investment house, today
announces that it is selling ESIM Chemicals (“ESIM”), a leading Austrian chemical maker to an affiliate
of Sun European Partners LLP (“Sun European Partners”). The two parties have agreed not to reveal
details of the transaction, and completion is subject to approval by the antitrust authorities.
Headquartered in Linz, Austria, ESIM is a global provider of high-quality agricultural and crop
protection chemicals, intermediates and maleic anhydride tree chemicals. The company emerged
after Ardian carved-out the two business units: agrochemicals (Exclusive Synthesis, “ES”), and fine
chemicals (Maleic Anhydride Intermediates & Specialties, “IM”) from DPx Holdings B.V. in August 2015
and subsequently led the business to independence.

ESIM’s primary focus is to partner with chemical companies in the custom synthesis of their unique
compounds. The company has over 75-years of experience in transforming breakthrough ideas into
scalable supplies of high-quality fine chemical products and intermediates.
The intermediates and end products synthesized by the company are important materials for a wide
range of industries: ES is among the top three custom manufacturing partners to the global crop
protection industry as well as other end markets such as food, feed and pharma. IM is a leading
supplier of maleicanhydride specialty ingredients that are used in various end markets such as personal care, nutrition,
paints and coatings as well as pharma.

Over the past three years, Ardian has supported the management team led by CEO, Wolfgang
Hillisch; COO, Harald Gruber; and CFO, Bernhard Kienberger in its efforts to combine ES and IM and to
build a fully stand-alone platform with its proprietary research and development, sales and marketing,
finance and controlling, and IT capabilities. As a result of the integration of the two business areas,
significant synergies and strong organic growth were achieved on the basis of existing and new
customer relationships and mutual operational benefits.
ES has considerably expanded its strong position in exclusive synthesis in the area of crop protection
chemistry and at the same time expanded into other markets such as cosmetics and fragrances,
polymers and coatings. IM has broadened its specialty product portfolio and has tapped into adjacent
and new market niches. Investments in business development and R&D have been essential to this
success. Additionally, the company set up its own laboratories and more than doubled the number of
employees in these areas. Overall, the number of employees has increased over 20% since 2015.
Wolfgang Hillisch, CEO of ESIM, said: “After the successful carve-out, ESIM has demonstrated its
leading reputation as an independent provider for fine and agricultural chemistry and has achieved
significant growth over the last three years. Ardian provided significant support and industry expertise
throughout the process and made a major contribution to our success today. At the same time, we
are convinced that we have found an ideal partner in Sun European Partners to support our envisaged
growth track.”

Wolfgang Pietzsch, Managing Director in Ardian’s German Buyout team, added: “The step towards
independence requires courage and perseverance but also offers large opportunities. The
management and employees of ESIM have managed this process incredibly well and have
demonstrated the company’s great potential. We are proud to have contributed to the successful
development of the business and the optimal foundation for further growth.”
Ardian’s Buyout team has extensive experience in the chemical sector resulting from past and current
investments including Eliokem, CABB, Novacap, Italmatch, and DRT.

ABOUT ARDIAN
Ardian is a world-leading private investment house with assets of US$67bn managed or advised in
Europe, North America and Asia. The company is majority-owned by its employees. It keeps
entrepreneurship at its heart and focuses on delivering excellent investment performance to its global
investor base. Through its commitment to shared outcomes for all stakeholders, Ardian’s activities
fuel individual, corporate and economic growth around the world.
Holding close its core values of excellence, loyalty and entrepreneurship, Ardian maintains a truly
global network, with more than 500 employees working from 13 offices across Europe (Frankfurt,
Jersey, London, Luxembourg, Madrid, Milan, Paris and Zurich), North America (New York, San
Francisco) and Asia (Beijing, Singapore, Tokyo). It manages funds on behalf of about 700 clients
through five pillars of investment expertise: Fund of Funds, Direct Funds, Infrastructure, Real Estate
and Private Debt.
Follow Ardian on Twitter @Ardian
www.ardian.com

ABOUT ESIM
ESIM Chemicals is a leading global provider of high-quality agricultural and crop protection chemicals,
intermediates and maleic anhydride tree chemicals, focusing on partnering with companies in the
custom synthesis of their unique compounds and offer a portfolio of fine chemical products critical to
multiple industries.
The company is headquartered in Linz (Austria) and has more than 75 years of experience in
transforming innovative ideas into scalable supplies of advanced fine chemical products and
intermediates using state of the art facilities.
www.esim-chemicals.com

ADVISORS TO THE TRANSACTION
M&A: Rothschild
Legal: Willkie Farr & Gallagher, Binder Groesswang
Commercial: Advancy
Financial: Ernst & Young
Tax: Ernst & Young
Environmental: Golder Associates
ESG: Indefi
Operational: ChemAdvice
PRESS CONTACTS
ARDIAN
Headland
Carl Leijonhufvud
cleijonhufvud@headlandconsultancy.com
Tel: +44 020 3805 4827

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EQT Real Estate acquires mixed-use property in central Stockholm

eqt

  • EQT Real Estate acquires 9,100 sqm mixed-use property in Stockholm for approximately SEK 345 million (EUR 33 million) before adjustment for latent capital gain taxes
  • Asset offers attractive value-add opportunities through partnerships with existing tenants as well as the potential for future upgrades
  • The investment represents EQT Real Estate’s seventh to date and second in Sweden

The EQT Real Estate I fund (“EQT Real Estate”) continues to invest in established European office markets and today announces the acquisition of the estate Hönsfodret 1, a mixed-use asset comprising both a school and office space, located at Tullgårdsgatan 12 on the island of Södermalm in central Stockholm. The seller is an affiliate of the Swedish insurance company Folksam.

The asset is located within close proximity to key Metro lines and the area has benefitted from strong investment in recent years. Built in 1981, the asset comprises of 9,100 sqm of office and education space and 34 garage parking spaces.

Henrik Orrbeck, Director at EQT Partners and Investment Advisor to EQT Real Estate I, commented: “Hönsfodret 1 presents a rare opportunity to upgrade an existing office building into an attractive inner Stockholm location. This acquisition further underpins EQT Real Estate’s ambition to deliver grade A assets fit for modern occupiers demanding flexible and creative solutions”.

Robert Rackind, Partner and Head of Real Estate at EQT Partners, Investment Advisor to EQT Real Estate I, added: “The Hönsfodret 1 investment represents what EQT Real Estate is all about – identifying underinvested assets in gateway cities in Western Europe with several value-add angles. EQT Real Estate sees many opportunities in this region and will continue to explore the sustained global demand and local needs that exist in these markets”.

EQT Real Estate I was advised on the acquisition by Linklaters, AF Consulting, Concila, Archus and Beadmans.

Contacts
Henrik Orrbeck, Director at EQT Partners, Investment Advisor to EQT Real Estate I, +46 8 506 553 27
Robert Rackind, Partner and Head of Real Estate at EQT Partners, Investment Advisor to EQT Real Estate I, +44 207 430 5550
EQT Press Office +46 8 506 553 34

About EQT
EQT is a leading alternative investments firm with approximately EUR 50 billion in raised capital across 27 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtpartners.com

About EQT Real Estate I
EQT Real Estate I will seek to make direct and indirect controlling investments in real estate assets, portfolios and operating companies that offer significant potential for value creation through repositioning, redevelopment, refurbishment and active management. The investments will typically range between EUR 50 million and EUR 200 million. The fund is advised by an experienced team from EQT Partners, with extensive knowledge of property investment, development and intensive “hands-on” asset management, and with access to the full EQT network, including 10 European offices and more than 250 industrial advisors.

More info: www.eqtpartners.com/Investment-Strategies/real-assets/real-estate/

 

 

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EQT Credit and Ardian Private Debt provide financing for Hg’s investment in MediFox

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eqt

EQT Credit, through its Mid-Market investment strategy, today announces that it has provided a senior secured financing solution together with Ardian to support Hg’s (“Hg”) investment in MediFox.

Founded in 1994, MediFox is a leading provider of software solutions to over 6,000 ambulatory care services, elderly care homes and therapists in Germany. Its software solutions support care providers with key services including resource and route planning, care and support documentation, management information systems, as well as billing, factoring and administration services. It is headquartered in Hildesheim, Germany and employs 265 people.

Paul Johnson, Partner at EQT Partners’ Credit team, Investment Advisor to EQT Credit, commented: “MediFox is well established as a leading software provider for elderly care in Germany. The company enjoys an attractive market leadership in the outpatient segment, long-term track record and product quality. We would like to thank EQT’s independent Industrial Advisors, who as senior executives in the German care home segment, provided key support to the EQT Credit deal team throughout the due diligence process. EQT Credit looks forward to supporting MediFox and its management team under Hg’s ownership.”

Contacts

Paul Johnson, Partner at EQT Partners, Investment Advisor to EQT Mid-Market Credit, +44 207 430 5554
Nakul Sarin, Director at EQT Partners, Investment Advisor to EQT Mid-Market Credit, +44 208 432 5420
EQT Press Office, +46 8 506 55 334, press@eqtpartners.com

About EQT Credit
EQT Credit invests through three complementary strategies: senior debt, Mid-Market Credit (direct lending) and credit opportunities. Since inception, EQT Credit has invested in excess of EUR 5 billion in over 160 companies. EQT Credit’s direct lending strategy seeks to provide flexible, long-term debt capital solutions to medium-sized European businesses, across a wide range of sectors. These businesses may be privately-owned corporates seeking alternative funding to grow or be the subject of private equity-led acquisitions or refinancings.

More info: www.eqtpartners.com/Investment-Strategies/Credit
About EQT

EQT is a leading alternative investments firm with approximately EUR 50 billion in raised capital across 27 funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 19 billion and approximately 110,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtpartners.com

 

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