Avedon Capital Partners teams up with founders to acquire Spindel- und Lagerungstechnik Fraureuth GmbH

Avedon

Fraureuth/Düsseldorf/Amsterdam, 5 February 2019
Article in German (PDF)

Avedon Capital Partners (“Avedon”) teams up with founders to acquire Spindel- und Lagerungstechnik Fraureuth GmbH (“SLF” or “Company”), a niche manufacturer of specialized spindles and ball bearings located in Fraureuth, Germany. The transaction successfully closed on January 18th, 2019. The parties agreed not to disclose the purchase price or further details of the transaction.

As part of a succession solution, Avedon enters as a new shareholder whilst the four founders of SLF, Frank Schlegel, Siegfried Huster, Gerd Kahl and Heinz Peinl, retain a minority stake in the Company. In the course of this succession solution, the three founders, who are still active as managers, will gradually reduce their operational responsibilities over time. The founders and Avedon will support SLF’s growth plan by leveraging the combined expertise of the founders and Avedon’s experience as a successful growth capital investor in the precision ball bearings market.

As a hidden champion in the spindles and ball bearings technology segment, SLF delivers customized solutions for demanding customers active in industries such as mechanical engineering, food & beverage, motor manufacturing or pump manufacturing. SLF is headquartered in Fraureuth, a production site with a long history of specialized spindles and ball bearings manufacturing dating back more than 60 years. SLF was founded in 1993 following the bankruptcy of its predecessor company DKFL GmbH and is today regarded as a leading German manufacturer of specialized spindles and ball bearings. The success story of SLF is remarkable as the four founders grew the company from 29 employees in 1993 to a well- positioned, leading manufacturer of specialized spindles and ball bearings with an employee base consisting of 347 employees today and generating revenues of c.49m€ (2018).

Avedon together with the founders will support SLF in a collaborative approach towards new strategic goals, to further invest in its operations as well as to pursue new market opportunities. The ambition of both, the founders and Avedon, is to further strengthen SLF’s competitive positioning by focusing on attractive end-markets, growing its OEM customer base and fostering international growth.

Dr. Frank Schlegel, founder and managing director of SLF, comments on the transaction: “When we started the succession process together with Oaklins Angermann and KMS Zwickau in Spring 2018, it was important to us from the very beginning to find a new majority shareholder who knows our industry well and who can ensure a long-term future for our employees at the production site. We as founding shareholders are exceptionally proud of what we have been able to achieve together with our employees in the past 25 years. With Avedon we have found the ideal partner who will ensure a smooth transition and elevate SLF to the next level through a focused internationalization strategy. We are looking forward to working with Avedon.”

Alexis Weege, Investment Director at Avedon, adds: “SLF enjoys a remarkable success story as German hidden champion and we are looking forward to accompanying SLF’s growth path together with the founders. We will leverage our experience with industrial niche companies in general and especially in the precision ball bearings segment to help fostering international growth and further specialization of SLF over the coming years.”

About Spindel- und Lagerungstechnik Fraureuth GmbH
Spindel- und Lagerungstechnik Fraureuth GmbH (“SLF GmbH) is a spindles and ball bearings manufacturing company which was founded in 1993 following the bankruptcy of its predecessor company. The company is headquartered in Fraureuth (former East Germany) and today employs 347 employees. SLF offers spindles and ball bearings units in the diameter size range of 40m to 1600mm with a clear focus on high-end specifications for demanding applications. The company owns a production facility in Fraureuth, Germany and was able to grow continuously over time. In 2018, SLF generated revenues of c.49m€. Go to: www.slf-fraureuth.de for more information.

About Avedon Capital Partners
Avedon is a leading lower mid-market private equity firm in the Benelux and Germany, providing capital in partnership with strong founder/owners or management teams that have distinctive and ambitious growth plans requiring a step change. The Avedon team is located in Amsterdam (NL) and Düsseldorf (GER) with managed assets of more than €500 million. Through dedicated sector teams, Avedon seeks opportunities in niches within four sectors: i) Software & Technology, ii) Business services, iii) Industry & Engineering, and iv) Consumer products & Leisure. Throughout the cycles the team has supported 24 growth companies in the fields of strategy, sales growth, human capital, operational improvement and has achieved a strong track record of growth.

For further inquiries, please contact:
Hannes Hinteregger, Partner,
hannes.hinteregger@avedoncapital.com, +49 211 5988 901

Alexis Weege, Investment Director,
alexis.weege@avedoncapital.com, + 49 211 5988 906

Jan-Moritz Hohn, Associate,
jan-moritz.hohn@avedoncapital.com, + 49 211 5988 9084

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Investor AB supports Electrolux proposal to split the Group

Investor

2019-02-01 07:33 GMT+01

As announced yesterday, Electrolux Board of Directors has initiated work in order to propose that a shareholders meeting decides to separate its professional appliances business, Electrolux Professional, into a new company and to distribute it to the shareholders of AB Electrolux in 2020. As the largest owner of Electrolux, Investor supports this proposal.

“We believe that the intended split will further sharpen focus and add customer value both in Electrolux core consumer business and in the professional appliances business. A separation will create two strong platforms with good prospects for profitable growth and long-term value creation. Upon completion of the split both companies will be listed core investments within Investor”, comments Johan Forssell, Investor’s President and CEO.

Investor is Electrolux largest owner, holding 16.4 per cent of the capital and 28.3 per cent of the votes.

For further information:

Viveka Hirdman-Ryrberg, Head of Corporate Communication and Sustainability,
Phone +46 70 550 3500
viveka.hirdman-ryrberg@investorab.com

Magnus Dalhammar, Head of Investor Relations,
Phone +46 73 524 2130
magnus.dalhammar@investorab.com

Our press releases can be accessed at www.investorab.com

Investor, founded by the Wallenberg family a hundred years ago, is the leading owner of high quality Nordic-based international companies. Through board participation, our industrial experience, network and financial strength, we strive to make our companies best-in-class. Our holdings include, among others, ABB, Atlas Copco, Ericsson, Mölnlycke and SEB.

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NetCo reaches a final agreement with IK Investment Partners

ik-investment-partners

IK Investment Partners (”IK”), a leading Pan-European private equity firm, is pleased to announce the signing of a sale and purchase agreement with the Groupe NetCo (”NetCo”), a specialist of preventive and curative maintenance of belt and roller conveyors. NetCo will be the fifth acquisition in IK’s Small Cap II Fund, which targets growing businesses within the Benelux, DACH, France, and the Nordics.  Financial terms of the transaction are not disclosed.

Founded in 1902 in France, NetCo has grown to become a European specialist in conveyor systems across key industries including quarries, food and heavy goods.

Through its three business units; NetCo Services, NetCo Distribution, NetCo Systems, NetCo holds a leading position on the maintenance of conveyor markets for both services and distribution, and has become a strategic partner for customers by supporting critical parts of their industrial processes. NetCo is headquartered in Bordeaux and operates 55 agencies with 500 employees across France. The business has a further presence across Belgium  and Luxembourg, and a foothold in North Africa (Morocco), the Middle East (Bahrain) and South East Asia (Indonesia).

To meet ever-growing European demand of outsourced maintenance services and initiate their international expansion, NetCo managers (Samuel and James Perriez) partnered with WINCH Capital 3, a fund managed by Andera Partners, through a primary growth capital transaction at the end of 2016. NetCo adopted a strong acquisitive strategy, most recently acquiring ABM TECNA, a Belgium conveyor system specialist in 2017. The company has completed 32 transactions since 2000, 14 of which in the past three years. This partnership enabled the group to double its size within two years.

Pierre Gallix, Partner at IK, said:

“We are delighted to partner with NetCo, business with a diverse and competitive product offering and a phenomenal legacy which spans more than a century. We are especially impressed with the company’s track record of integrating bolt-on businesses and the breadth of its longstanding management team. We look forward to working with them to help NetCo become the number one player in the European conveyor belt service market.”

Arnaud Bosc, Partner at IK, added:

“NetCo’s multi-brand offering and high-quality solutions have contributed to the company’s outstanding reputation across multiple industries. We are delighted to work with NetCo and look forward to supporting the business as it continues to expand its global presence.”

Samuel Perriez, President of NetCo commented:

“Thanks to the support of Andera Partners, the company has been able to achieve remarkable growth in France and in Belgium over the last three years. IK’s support of NetCo paves the way for new international ambitions”

James Perriez, CEO of NetCo added:

“We are excited to be partnering with IK as we enter the next stage of our growth strategy. IK’s track record of investing in industrials paired with their strong European roots make them the perfect partner to help our business expand its presence while staying true to our local roots.”

François-Xavier Mauron and Antoine Le Bourgeois, Partners at Andera Partners, concluded:

“The change of scale of NetCo from a leading French player to a pan-European champion over only two years illustrates perfectly the DNA of the WINCH Capital team as a hands-on investor and partner to management. We are excited to welcome IK and further accompany Samuel and James Perriez for the next cycle of growth of NetCo.”

The closing of the transaction is conditioned to the approval by the French Antitrust authorities.

For further questions, please contact:

IK Investment Partners
Pierre Gallix, Partner
Phone: +33 1 44 43 06 60

Arnaud Bosc, Partner
Phone: +33 1 44 43 06 60

Mikaela Murekian
Director Communications & ESG
Phone: +44 77 87 573 566
mikaela.murekian@ikinvest.com

Andera Partners

Nicolas Delsert
Director Communication
Phone: +33 1 85 73 52 88

About IK Investment Partners
IK Investment Partners (“IK”) is a Pan-European private equity firm focused on investments in the Nordics, DACH region, France, and Benelux. Since 1989, IK has raised more than €9.5 billion of capital and invested in over 120 European companies. IK funds support companies with strong underlying potential, partnering with management teams and investors to create robust, well-positioned businesses with excellent long-term prospects. For more information, visit www.ikinvest.com

About Andera Partners
Created in 2001 as part of the Edmond de Rothschild Group and wholly owned by its employees since March 2018, Andera Partners is a leading investor in private companies in France and internationally. It manages €2.3 billion in investments in life sciences (BioDiscovery), growth capital and buyout capital (Winch Capital in mid-cap and Cabestan Capital in small-cap) and sponsorless mezzanine debt (ActoMezz). www.anderapartners.com

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LAURALU builds its future backed by EVOLEM

Evolem

Lyon, Tuesday, January 15, 2019 – EVOLEM acquires a majority stake in the steel and textile temporary structures specialist called LAURALU.

Located in Saverdun (Ariège) and created in 1998, LAURALU supplies high quality space solutions to logistics operators and industries (SMEs, retailers and institutional and public authorities). Olivier Hohn, Spaciotempo’s (GL Event business unit) former director, took over the company in 2014 with a view to initiate a radical change of the business model from sale to rental, but also to grow internationally through the opening of subsidiaries in United Kingdom and Spain.

LAURALU has established itself as a major player in the manufacturing and leasing of metal and textile structures with a turnover of more than 12 M€ in 2018. The rental offer appears today as an obvious solution for companies’ modular and flexible needs.
With this deal Olivier Hohn wanted to back-up the company with a financial shareholder able to provide long-term support to drive future growth of the company and on which he could rely in order to realise buy and build operations, both in France and abroad.
« The entrepreneurial nature of the Family Office Evolem, the personality of the management team and its clearly expressed desire for external growth have totally convinced me of this choice despite strong interest of other French and international funds.
This operation should help the team build a major European player. »,
explain Olivier Hohn.
« Since the acquisition of LAURALU by Olivier Hohn in 2014, the Company has seen its turnover more than triple with a radical change of its business model offering better visibility on its activity. Olivier Hohn’s experience in this market, his international profile as well as various expansion opportunities have convinced us.»,
testifies Sandrine Escaleira.

Intervenants de l’opération
Buyers : EVOLEM (François NOIR, Sandrine ESCALEIRA, Victor d’HEROUVILLE), SOFILARO (Christophe ROMEYER), Pierre ASSEO, MANAGERS, AUTRES
Legal advisors (buy-side) : ALCYA CONSEIL (Laurent SIMON, Sabine PRADES, Marion MENU)
Legal, social and fiscal due diligence : ALCYA CONSEIL (Laurent SIMON, Sabine PRADES, Marion MENU), CUATRE CASAS (Helene BAUS), STEVENS BOLTON (Nick ATKINS)
Financial Due Diligence : EIGHT ADVISORY (Xavier MESGUICH, Bilel DJEMMALI)
Senior debt : CREDIT AGRICOLE SUD MEDITERRANEE (Sebastien EPALZA, Didier HOCHET), CREDIT AGRICOLE TOULOUSE (Eric ESPIE, Franck ARMANDET, Philippe CHAMOULAUD)
Legal advisor (debt) : PACT AVOCATS (Benjamin DAHAN)
Sellers : MANAGERS, Pierre ASSEO
Legal advisor (vendor) : ALTIJ (Patrick NADRAULT)
M&A advisor (vendor): CAMBON PARTNERS (Guillaume TEBOUL, Philippe BACKES)

About Evolem
Evolem, is a French family office, created and 100% owned by an entrepreneur: Bruno ROUSSET (founder of April group). Evolem’s investment approach is based on a long term strategic vision shared with the management, and no exit horizon in order to accompany the development of leading players in specific sectors.
In the context of majority transactions, Evolem invests in companies with sales between 10 M€ and 80 M€ and operating in niche markets, with the objective of growing small to intermediate size (100 M€ to 150 M€ in sales) through organic and external growth and increased international reach.
Having completed 44 add-ons operations including 11 abroad, Evolem has a solid experience in carrying out such transactions for its platforms, in the identification of potential targets, approach, negotiations and execution.

More information on : https://www.evolem.com/

Press contact :
Peggy DESOUTTER
peggy.desoutter@evolem.com
+33 (0)4 72 68 98 00
+33 (0)6 88 23 15 63

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Aritco acquires TKS Heis, a leading Norwegian manufacturer and installer of platform lifts

Latour logo

Investment AB Latour (publ) has, through its subsidiary Aritco Group, acquired TKS Heis AS based in NÆRBØ, Norway. Closing will take place on 31 January, 2019.

TKS Heis is a leading Norwegian manufacturer and installer of platform lifts and installer of passenger lifts. The company was founded in 1997 and has built a business with development and manufacturing at the head office in NÆRBØ and a sales, installation and aftermarket organization that serves the majority of the Norwegian market. Sales for 2018 amounted to NOK 155 million and the company has 74 employees.

The acquisition of TKS Heis complements Aritco’s product portfolio and strengthens its offering to existing distribution networks. In addition, the acquisition strengthens an already strong position in the Norwegian market.

“TKS Heis has been a reseller of Aritco’s products in Norway since 1997 and I am very pleased to have Latour and Aritco as a new owner. I am convinced that Aritco as a long-term and industrial owner with a customer base in a large number of markets will constitute an excellent foundation for continued growth for TKS Heis and our products in and outside Norway”, Says Tønnes Helge Kverneland, CEO of T. Kverneland & Sønner AS.

“We have had a close partnership with TKS Heis since 1997 and we have come to know TKS as a very professional player, the acquisition secures this relationship for the future. TKS gives us access to a product that complements our existing range in an excellent way. In addition, TKS Heis adds great experience and expertise in the aftermarket field, which will help us in our development of aftermarket products and services” says Martin Idbrant, CEO of Aritco Group.

Göteborg, 11 January, 2019

INVESTMENT AB LATOUR (PUBL)
Jan Svensson President and CEO

For further information, please contact:
Martin Idbrant, VD Aritco group AB, 0727 15 36 52
Gustav Samuelsson, affärsutveckling Investment AB Latour, 0735 52 55 59

Aritco Group is a globally leading manufacturer of platform lifts for one-family houses and accessibility adaptation of public/commercial buildings. Sales go through a strong network of local partners in Europe, Middle East and Asia.

Investment AB Latour is a mixed investment company consisting primarily of a wholly-owned industrial operations and an investment portfolio of listing holdings in which Latour is the principal owner or one of the principal owners. The investment portfolio consists of ten substantial holdings with a market value of about SEK 49 billion. The wholly-owned industrial operations has an annual turnover of about SEK 11 billion.  

 

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Segulah V L.P. acquires Francks Kylindustri

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Segula

Segulah V L.P. has entered into an agreement to acquire Francks Kylindustri AB from the Franck family and CEO Per Hannius.

Francks is a leading company within the industrial refrigeration market with a turnover of approximately MSEK 450. The company, founded in 1950, has approximately 200 employees and is headquartered in Norrköping. With offices at ten locations from Ludvika in the north to Helsingborg in the south, Francks undertakes complex refrigeration installations in a number of industries.

Both current Chairman Göran Franck and CEO Per Hannius will remain as shareholders alongside Segulah.

”I look forward to working with Segulah to grow Francks and develop the business for our customers. With Segulah as a new, strong majority shareholder, we get the opportunity to invest further, both organically and through strategic acquisitions”, says Per Hannius.

“Segulah, who previously has completed several successful investments in the installation sector, is pleased to be the new majority shareholder of Francks and look forward to develop the business together with Francks’ strong management team”, says Marcus Planting-Bergloo, Partner at Segulah Advisor AB.

The acquisition is the eight investment for Segulah V L.P.

 

For further information, please visit www.franckskylindustri.se,
www.segulah.com or contact:

Per Hannius, CEO, Francks, +46 73 53 99 225

Marcus Planting-Bergloo, Partner, Segulah Advisor AB, +46 70 22 91 185

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Aritco acquires TKS Heis, a leading Norwegian manufacturer and installer of platform lifts

Latour logo

Investment AB Latour (publ) has, through its subsidiary Aritco Group, acquired TKS Heis AS based in NÆRBØ, Norway. Closing will take place on 31 January, 2019.

TKS Heis is a leading Norwegian manufacturer and installer of platform lifts and installer of passenger lifts. The company was founded in 1997 and has built a business with development and manufacturing at the head office in NÆRBØ and a sales, installation and aftermarket organization that serves the majority of the Norwegian market. Sales for 2018 amounted to NOK 155 million and the company has 74 employees.

The acquisition of TKS Heis complements Aritco’s product portfolio and strengthens its offering to existing distribution networks. In addition, the acquisition strengthens an already strong position in the Norwegian market.

“TKS Heis has been a reseller of Aritco’s products in Norway since 1997 and I am very pleased to have Latour and Aritco as a new owner. I am convinced that Aritco as a long-term and industrial owner with a customer base in a large number of markets will constitute an excellent foundation for continued growth for TKS Heis and our products in and outside Norway”, Says Tønnes Helge Kverneland, CEO of T. Kverneland & Sønner AS.

“We have had a close partnership with TKS Heis since 1997 and we have come to know TKS as a very professional player, the acquisition secures this relationship for the future. TKS gives us access to a product that complements our existing range in an excellent way. In addition, TKS Heis adds great experience and expertise in the aftermarket field, which will help us in our development of aftermarket products and services” says Martin Idbrant, CEO of Aritco Group.

Göteborg, 11 January, 2019

INVESTMENT AB LATOUR (PUBL)
Jan Svensson President and CEO

For further information, please contact:
Martin Idbrant, VD Aritco group AB, 0727 15 36 52
Gustav Samuelsson, affärsutveckling Investment AB Latour, 0735 52 55 59

Aritco Group is a globally leading manufacturer of platform lifts for one-family houses and accessibility adaptation of public/commercial buildings. Sales go through a strong network of local partners in Europe, Middle East and Asia.

Investment AB Latour is a mixed investment company consisting primarily of a wholly-owned industrial operations and an investment portfolio of listing holdings in which Latour is the principal owner or one of the principal owners. The investment portfolio consists of ten substantial holdings with a market value of about SEK 49 billion. The wholly-owned industrial operations has an annual turnover of about SEK 11 billion.  

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Sika makes binding offer to acquire Parex

Combining two “growth engines”, highly complementary in product offering and channel penetration

Sika has made a binding offer to acquire Parex from its current owner CVC Fund V. Parex is a leading manufacturer of mortar solutions including facade mortars, tile adhesives, waterproofing, and technical mortars. In 2018 the company generated sales of CHF 1.2 billion and an expected EBITDA of around CHF 195 million. With its expertise in mortar solutions for renovation and new builds, Parex participates in all phases of the construction life cycle. Parex has a particularly strong presence in distribution channels, combining recognised brands with R&D expertise and technical excellence. It is locally present in 23 countries with key positions in 8 core geographies and operates 74 plants around the world.

Paul Schuler, CEO of Sika: “Parex is an excellent company with well recognised brands and an impressive performance track record. The businesses of Parex and Sika are highly complementary. Using Parex technologies as a growth platform in all our 101 countries and cross-selling of our products to the well established distribution channels of Parex will generate great profitable growth. Parex’s excellent facade business can be leveraged in the entire Sika world. We warmly welcome all employees of Parex to the Sika Family. We look forward to working with the Parex team and we are excited about expanding our joint business operations.”

Eric Bergé, CEO of Parex: “Under CVC Fund V’s ownership, the Parex team has delivered a very strong performance, growing sales from EUR 750 million in 2013 to over EUR 1 billion. Over this 5-year period, Parex entered 3 new countries and opened 16 new plants, added 11 bolt-on acquisitions, and built a new international R&D center. Sika represents a great platform to continue to deliver on Parex’s ambitious growth plan and the combination creates new exciting opportunities in terms of offering new solutions to our customers and continuing our geographic expansion. I would like to thank our sponsor, CVC Capital Partners, our teams across the world, and our customers for their trust and support in these past five years, and we look forward to working with Sika in the future.”

With this acquisition Sika will further strengthen its leading position in construction chemicals and industrial adhesives and will reach sales in excess of CHF 8 billion. It will deepen and widen Sika’s growth platform. Its mortar business, which is a key growth technology for the group and one of its important earning contributors, will more than double in size to CHF 2.3 billion. Parex’s strong position in distribution channels will open up new business opportunities for Sika’s product range. Parex will gain access to Sika’s well established direct sales channels and Parex’s expertise in the facade and tile setting business will allow Sika to participate in these growing and attractive market fields.

Financial Parameters

Annual synergies are expected to be in the range of CHF 80-100 million. Purchase price represents a 11.3x EV / pro forma EBITDA 19E multiple which will come down to less than 8.5x EV/EBITDA, including full run-rate synergies. The acquisition is value enhancing to Sika shareholders and is expected to be accretive to Sika’s earnings per share from the first full year post closing. The financing of the transaction is secured by a bridge loan facility committed by UBS and Citi. Sika remains committed to maintaining a strong investment grade credit rating and intends to put in place a long-term funding structure comprising a combination of cash-on-hand, bank loans, and capital market instruments.

The acquisition is implemented in various steps. The parties have signed an exclusive binding offer. The completion of the transaction is subject to French works council consultation process and regulatory approvals and is expected in Q2/Q3 2019.

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Swedish expansion of airteam continues

Ratos

Ratos’s subsidiary airteam is continuing its expansion in Sweden through the acquisition of Creovent AB (Creovent) and Thorszelius Ventilation & Service AB (Thorszelius), leading installers of climate and ventilation solutions in the Stockholm and Uppsala regions.

airteam, a leading supplier of ventilation solutions in Denmark, is strengthening its market position in Sweden through the acquisition of Aurvandil AB, who owns the subsidiaries Creovent and Thorszelius. Together they have approximately 85 employees with offices in Stockholm and Uppsala. Pro forma sales in 2017 for both companies amounted to approximately SEK 235m and adjusted EBITA to SEK 24m. The companies offer efficient climate and ventilation solutions, including service and maintenance, to a customer base comprising property owners, construction companies and the public sector. This is airteam’s second acquisition in the Swedish market and its third bolt-on acquisition overall since Ratos became principal owner of the company in 2016.

“With the acquisition of Creovent and Thorszelius, airteam is continuing its strategic investments in Sweden, and together with the acquisition of Luftkontroll Energy in Örebro last year, airteam now has a strong market position in the expansive Mälardalen region. Creovent and Thorszelius are well-run companies with strong market positions in the Stockholm and Uppsala regions and have competent management teams, who will remain in their roles and be partners in the company moving forward. We welcome Creovent and Thorszelius to airteam and look forward with confidence to growing together in Sweden,” says Robin Molvin, Vice President of Ratos.

The acquisition is expected to be completed in the first quarter of 2019 and is being financed by airteam without any capital contribution from Ratos.

For further information, please contact:
Robin Molvin, Vice President, Ratos, +46 8 700 17 15
Helene Gustafsson, Head of IR and Press, Ratos, +46 8 700 17 98

About Ratos:
Ratos is an investment company that owns and develops unlisted medium-sized Nordic companies. Our goal as an active owner is to contribute to the long-term and sustainable business development in the companies we invest in and to make value-generating transactions. Ratos’s portfolio consists of 12 medium-sized Nordic companies and the largest segments in terms of sales are Construction, Industrials and Consumer goods/retail. Ratos is listed on Nasdaq Stockholm and has a total of approximately 12,300 employees.

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CBPE invests in IDEAL Networks

CBPE

CBPE Capital (“CBPE”) has acquired a majority ownership position in IDEAL Networks, a market leading Industrial Technology business which provides portable handsets for data cable and network testing, validation and certification. CBPE is acquiring the business from its former parent, IDEAL INDUSTRIES Inc and will be investing alongside the incumbent management team led by Paul Walsh, CEO. Terms of the transaction have not been disclosed.

IDEAL Networks’ products improve the productivity of qualified engineers who install, test and maintain network cabling and services. They work by simulating data flow to provide network diagnostics, enabling the engineers to certify newly installed network cabling or to resolve network issues across both Local Area Networks (LAN) and Wide Area Networks (WAN). IDEAL Networks is a global business, with sales across the EMEA, North America, Latin America and Asia.

Its comprehensive portfolio of products means that IDEAL Networks is well positioned to take advantage of a high growth market driven by ever-increasing demands for rapid and reliable network connectivity to facilitate global trends of faster transmission of data, voice and video signals.

CBPE will work with management to build on IDEAL Networks’ reputation for product innovation and will invest in research and development. The business will continue to offer market leading products developed to suit the needs of its end users.

CBPE has a strong track record of acquiring subsidiaries or divisions from larger parents and supporting these in becoming successful standalone businesses. Examples from CBPE’s current and realised portfolio include: SAFECHEM, which was acquired from The Dow Chemical Company; Xafinity, which was acquired from the Equiniti Group; and BWA, which was acquired from Chemtura. CBPE will leverage this experience to support the management team in establishing IDEAL Networks as an independent market leader and in pursuing ambitious international growth.

Mathew Hutchinson, Partner, CBPE said:
“IDEAL Networks has successfully established a reputation for quality and service in an attractive and growing market, and we are confident that the business will thrive under independent ownership. We will work with the management team and support their commitment to continue to offer innovative products and services which match the needs of the customer base.”

Paul Walsh, CEO of IDEAL Networks said:
“We are delighted to be working with CBPE and look forward to establishing IDEAL Networks as a successful, independent market leader. IDEAL INDUSTRIES has been a supportive owner and has enabled us to reach this stage of our development. With CBPE, we are confident we have found a partner that will provide valuable input as we pursue our exciting growth plans.”

CBPE’s investment in IDEAL Networks was led by Mathew Hutchinson with support from Ben Lewis, James Whittington and Aqil Sohail. Mathew Hutchinson and Ben Lewis will join the Board of IDEAL Networks.

Reed Smith acted as legal advisers to CBPE and PMSI provided the commercial due diligence advice. William Blair acted as financial adviser to IDEAL INDUSTRIES Inc.

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