H.I.G. Capital Announces the Sale of Kondor

HIG Capital

LONDON – July 13, 2018 – H.I.G. Capital (“H.I.G.”), a leading global private equity investment firm with more than €20 billion of equity capital under management, announced today that one of its affiliates has sold Kondor Limited, a specialist provider of category management solutions for audio and mobile accessory products into the retail and mobile network channels in the UK and Europe, to DCC Technology (which principally trades under the Exertis brand), part of DCC plc, the leading international sales, marketing and support services group. Terms of the transaction were not disclosed.

Headquartered in Dorset, England, Kondor distributes audio and mobile accessory products to a broad range of e-tail, retail and mobile operator customers. H.I.G. invested in Kondor in 2014, and has since overseen a full reorganisation of the business. H.I.G. worked in partnership with Kondor to professionalise back office systems, develop Kondor’s access to market data, optimise the company’s product range, improve stock management and fulfilment, and grow the headcount of the business from 188 to around 250 employees. A new CEO, Beatrice Lafon, was appointed in 2017.

Carl Harring, Managing Director at H.I.G. Capital, commented on the transaction: “The consumer electronics accessories market has grown over recent years and is set for further expansion. We have enjoyed working with the Kondor team and, following intensive efforts to re-focus the business on its core product offering, it is now best positioned for future growth, both domestically and internationally.”

Beatrice Lafon, Chief Executive Office at Kondor, commented: “I would like to thank H.I.G. for their support in the expansion of Kondor. Their assistance in improving internal operations and refining our customer base leaves us in a market-leading position, with the potential for significant organic and inorganic growth. With the financial backing of DCC, and the combined benefits of working with the European retail divisions at Exertis, we will be in a strong position to continue to grow and develop the range of bespoke services we offer to our partners.”

Donal Murphy, Chief Executive of DCC plc, commented: “The acquisition of Kondor is in line with DCC Technology’s strategy to expand its service offering to both our suppliers and customers. Increasingly DCC Technology’s partners are seeking full category management solutions, as well as data driven insights into product performance, and the acquisition of Kondor will further enhance our service offering.”

About Kondor
Kondor is a market maker connecting over 100 brands to over 250 customers with a dominance in Mobile and Consumer Electronics Accessories. Kondor operates in all major channels, creating partnerships across brands, retailers and territories, on line and off line, thanks to its insights, speed-to-market, sector and product expertise.

What makes Kondor stand out is its ability to create value for all its partners through a complete range of in-house bespoke services: Category Management, Advanced eCommerce Solutions, Marketing Agency, R&D and Sourcing, IT Capability, Logistics & Warehousing.

Kondor is the Master Distributor for Samsung, represents three of the top five best-performing case brands in the UK, and owns multiple category-leading and award-winning own brands covering Audio, Imaging, Protection and Power.

Its state-of-the-art 120,000 sq ft warehouse holds over 34,000 pick locations, turns over 100,000 units per day, and as many as 90% of all the products Kondor distributes are customised in some way.

Kondor’s vision is to be the ultimate sales and distribution partner, trusted by its partners globally for its insights, its innovation, its pace, its network and its results. Kondor is The Smart Choice.

About H.I.G. Capital
H.I.G. is a leading global private equity and alternative assets investment firm with over €20 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, Bogotá, Mexico City, Rio de Janeiro and São Paulo, 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, recapitalisations 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 assets 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 €28 billion. For more information, please refer to the H.I.G. website at www.higcapital.com.

About DCC Technology
DCC Technology, is a leading route-to-market and supply chain partner for global technology brands.

DCC Technology, which principally trades under the Exertis brand, provides a broad range of consumer and business technology products and services to customers across the consumer, B2B and enterprise markets. It operates in 13 countries with its principal operations in the UK, Ireland France, Sweden, and the United Arab Emirates. It also has operations in Poland, China, the US, Germany, Spain and Norway.

About DCC plc
DCC is a leading international sales, marketing and support services group with a clear focus on performance and growth. It operates through four divisions: LPG, Retail & Oil, Healthcare and Technology.

DCC is an ambitious and entrepreneurial business operating in 15 countries, supplying products and services used by millions of people every day throughout Europe. Building strong routes to market, driving for results, focusing on cash conversion and generating superior sustainable returns on capital employed enable the Group to reinvest in its business, creating value for its stakeholders.

Headquartered in Dublin, employing approximately 11,000 people, DCC’s four divisions are:

  1. DCC LPG – a leading LPG sales and marketing business with operations in Europe, Asia and the US and a developing business in the retailing of natural gas and electricity;
  2. DCC Retail & Oil – a leader in the sales, marketing and retailing of transport and commercial fuels, heating oils and related products and services in Europe;
  3. DCC Healthcare – a leading healthcare business, providing products and services to healthcare providers and health and beauty brand owners; and
  4. DCC Technology – a leading European sales, marketing and services partner for global technology brands.

DCC plc is listed on the London Stock Exchange and is a constituent of the FTSE 100. In its financial year ended 31 March 2018, DCC generated revenue of £14.3 billion and operating profit of £383.4 million.

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

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Cinven to acquire Envirotainer

Cinven

Investment in global temperature-controlled air freight market

International private equity firm, Cinven, today announces that it has signed an agreement to acquire Envirotainer (‘the Group’), a leading global provider of temperature-controlled air cargo containers, for an undisclosed consideration.

Headquartered in Stockholm, Envirotainer designs, manufactures and leases active temperature-controlled containers used primarily for air freighting biopharma products, transporting up to two millions doses of medicine per day.  The Group serves c. 600 customers worldwide, including many of the blue-chip global biopharma companies. With c. 300 employees, Envirotainer operates from regional centres in Stockholm, Frankfurt, Dallas and Singapore, with a portfolio of more than 5,500 leased containers globally.  The Group developed and marketed the first container with an active temperature control system in 1995 and since then has significantly invested in technology and its container fleet.

Cinven’s Business Services, Healthcare and Nordic teams identified Envirotainer as an attractive investment opportunity given:

  • Market leadership: Envirotainer is a clear market leader with the most innovative product offering, consistent service delivery, and global delivery capability;
  • Attractive market: the rise in biopharma sales for a broad range of clinical treatments, in combination with tightening regulatory requirements for transporting these products is driving strong growth in Envirotainer’s markets;
  • Global growth opportunity: Cinven will support Envirotainer’s global growth by developing its technology and expanding its container fleet and global service network.

Pontus Pettersson, Partner at Cinven, said:

“Envirotainer shares several common characteristics with Cinven’s highly successful investments including the provision of a critical service – temperature-controlled containers for the transportation of highly regulated and valuable biopharma products – in a growing market, with high barriers to entry.  

“Cinven has achieved strong growth for the many healthcare companies in which it has invested that span medical devices, pharmaceuticals, CROs and, specifically in Sweden, Phadia. Building on our pharmaceutical experience, we are delighted to be backing another strong management team, led by Michael Berg, and investing in the future growth of this exciting business.”

Ben Osnabrug, Senior Principal at Cinven, added:

“Within Business Services, Cinven looks to acquire companies that demonstrate structural growth, cash generation and defensibility in certain sub-sectors.  Envirotainer has a strong business model with excellent growth prospects and shares key characteristics with many of Cinven’s successful Business Services investments, in particular, including Tinsa and Hotelbeds, and previous investments in CPA Global and Amadeus. These companies provide mission-critical services to a diverse customer base in growing market niches, and benefit from long-term recurring revenue streams.” 

Michael Berg, CEO of Envirotainer, commented:

“Envirotainer is well positioned to capture significant growth from the biopharma market.   New ‘blockbuster’ drugs are being developed given the rising population with access to high end medicine and higher incomes; as well as a rise in chronic diseases. In addition, it is still necessary for pharma companies to supply vaccines, insulin and blood products, where biopharma demand is most strongly growing outside of key manufacturing centres in Europe and the US and these products therefore need to be transported via highly regulated and controlled air freight.

“We are particularly pleased to partner with the team at Cinven given their unique combination of healthcare expertise and track record of supporting the growth of Nordic companies.”

Envirotainer is the 10th investment from the Sixth Cinven Fund. The transaction follows Cinven’s most recent Business Services investments in JLA, the critical asset supply and services business for laundry, catering and heating in the UK (June 2018); Tinsa, a provider of property valuation, analysis and real estate advisory (Aug 2016); and Hotelbeds, a global business to business bedbank (Sept 2016); as well as previous investments in CPA Global, the IP management software and services provider; and Amadeus, the provider of technology solutions to the travel industry.

Cinven also has a long and proven track record of successfully investing in market leading growth companies serving the pharma and life sciences industry through its investments in CeramTec, the manufacturer of high performance ceramics for application in the medical and industrial end-markets; and Sebia and Phadia – both in-vitro diagnostics companies. In the Nordic region, Cinven has previously invested successfully in Visma, a leading software and business process outsourcing services business; Phadia and Ahlsell, a leading distributor of building products.

The completion of the transaction is subject to customary regulatory approvals.

Advisors on the transaction included: Citigroup and SEB (M&A); Roland Berger (commercial); FTI Consulting (financial); Clifford Chance and Vinge (legal); Deloitte (tax); and Aon (insurance).

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Ardian arranges unitranche financing for Naxicap Partners’ acquisition of ECS

Ardian

Paris, June 12th 2018 – Ardian, a world-leading private investment house, today announces the arrangement of a Unitranche financing facility to support Naxicap Partners’ acquisition of European Cargo Services (“ECS”), a world leading Global General Sales Agent, managing 900k tonnes of air cargo on behalf of airlines, representing an annual sales volume of over €1bn. The Unitranche package will also include a dedicated committed acquisition facility to support the growth of the Company and finance future build ups.

Founded in 1998 in Paris, ECS Group has built an efficient worldwide network of 137 offices across 47 countries, with over 1,000 staff working as a fully integrated organisation. ECS is a strategic partner for airlines and as their exclusive representative, markets and manages even their most complex cargo requirements.
Its global footprint is the product of both organic and external growth, resulting in a dense global network, with major recent acquisitions such as AVS in Asia (2016) and ExpAir in Canada (2017) strengthening ECS’s position in markets with strong growth potential.

In a market ripe for consolidation, offering a strong pool of build-up opportunities, the Company intends to pursue an active strategy of acquisitions, generating significant commercial synergies, while continuing to extend the range of services offered to clients, providing global and innovative solutions.

Backed by Alpha Private Equity since 2013, the management team selected Naxicap Partners for the next phase of growth, supported by a Unitranche facility provided by Ardian. “With ECS’ clear ambition of selectively penetrating and reinforcing its positions in key areas of its already broad network, the Unitranche alternative stood out as a compelling solution to accelerate the Company’s growth in the next few years” commented Grégory Pernot, Director of Private Debt at Ardian France.

Angèle Faugier, Partner at Naxicap Partners, added: “ECS has demonstrated an amazing growth trajectory under the leadership of Bertrand Schmoll and Adrien Thominet who have succeeded in both developing and structuring the Group around solid fundamentals (high-quality client portfolio, an integrated global network, efficient local teams, premium services). We are convinced that the Group has what it takes to establish itself as the major consolidation platform in the market and to be a driving force for innovation in the cargo industry. We want to provide its management team with the means to put their ambitious development plans into action, and are convinced that the expertise of Ardian, through this Unitranche financing, which grants us flexibility and speed of execution, will enable us to rapidly achieve our goals.”

“We are proud to have convinced Naxicap and ECS’ management team of the merits of our offer, and are delighted to be a key partner of the Group going forward. We have been very impressed by the Company’s historical development and by the quality and loyalty of the management team for over twenty years“ said Guillaume Chinardet, Head of Private Debt France and Managing Director at Ardian. “This is our 108th transaction since the creation of Ardian’s Private Debt activity, reflecting the longstanding track-record of the team since 2005, as well as our capacity to underwrite Unitranches of significant size.”

ABOUT ARDIAN

Ardian is a world-leading private investment house with assets of US$71bn 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 thirteen 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 700 clients through five pillars of investment expertise: Private Debt, Fund of Funds, Direct Funds, Infrastructure and Real Estate.

Follow Ardian on Twitter @Ardian

ABOUT NAXICAP PARTNERS

Naxicap Partners is one of France’s leading private equity companies, and an affiliate of Natixis Investment Managers, totaling nearly €3bn of capital under management.
As a committed and responsible investor, Naxicap Partners builds solid and constructive partnerships with entrepreneurs for the success of their projects. The company has 40 investment professionals and 4 offices in France: Paris, Lyon, Toulouse and Nantes.

LIST OF PARTIES INVOLVED

ECS: Bertrand Schmoll (Chairman), Adrien Thominet (CEO), Raphaël Kokougan (CFO).
Naxicap Partners: Angèle Faugier, Caroline Lachaud, Sarra El Mghari Tabib, Michel Abi Fadel.
Ardian Private Debt: Guillaume Chinardet, Grégory Pernot, Clément Chidiac.
Financing Legal Advisor (Ardian): Willkie Farr & Gallagher – Paul Lombard, Ralph Unger.
PRESS CONTACTS
ARDIAN
Headland
CARL LEIJONHUFVUD
CLeijonhufvud@headlandconsultancy.com
Tel: +44 20 3805 4827

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Axcel teams up with family behind world-leading producer of accessories for pick-up trucks

Axcel

Axcel is partnering with the owners of Danish company Mountain Top Industries, one of the world’s leading producers of pick-up accessories. The company has grown rapidly in recent years and has brought Axcel on board to support its continued expansion and entry into new markets. Mountain Top is currently owned by Marie-Louise and Lars Bjerg, who will remain both shareholders and board members.

Mountain Top Industries has been producing accessories for pick-up trucks since 1978 and has evolved in close association with its customers, which include leading pick-up producers such as Ford, Nissan, Renault, VW, Mercedes-Benz and Toyota.

Almost 170 employees work in design, development and production at Mountain Top’s facilities in Frederikssund, Denmark. The company’s main market is currently Europe, where it is the market leader, but there is also potential for global expansion:

“After several years of rapid growth, the next step in our journey is to expand both sales and production in a number of new markets, which we believe can best be achieved in partnership with Axcel,” says CEO Marie-Louise Bjerg. “We moved into Australia in 2014, but we also see considerable potential in markets such as the US, which is more than 20 times the size of the European market. We look forward to taking Mountain Top to the next level together with Axcel with all its experience of international expansion.”

Mountain Top’s move into the global market has led to a doubling of sales outside Europe in the past four years to 20% of total turnover.

“We’ve come a long way under family ownership since the business was founded in 1951, so it was a big decision to sell,” says Lars Bjerg. “But after lengthy deliberation and dialogue, we feel sure that Axcel can help take Mountain Top Industries forward.”

The pick-up truck market in Europe, Asia-Pacific and North America has a long track record of stable growth, so Axcel sees good opportunities for continued expansion:

“Through a focus on product development, quality and service, Marie-Louise and Lars Bjerg have built a business with a wide range of good products and high customer satisfaction,” says Christoffer Müller, the officer responsible for the investment at Axcel. “In addition, Mountain Top has achieved a high degree of efficiency in all processes, so our future focus will be on generating growth in both established and new markets, including the US, where 3 million pick-up trucks are sold every year.”

Mountain Top is the second investment for Axcel’s fifth fund, Axcel V. The transaction is subject to approval from the competition authorities.

 

About Mountain Top Industries

Mountain Top has been producing accessories for pick-up trucks since 1978 and has around 170 employees working on design, development and production in Frederikssund, Denmark. In 2014, the company also opened a sales office in Australia. Mountain Top supplies accessories to carmakers such as Ford, Nissan, Renault, VW, Mercedes-Benz and Toyota for factory fitting, but also to the aftermarket. The company has won Danish business paper Børsen’s Gazelle Award for fast-growing companies eight times, most recently in 2017, and is the current holder of PwC Denmark’s Owner-Manager of the Year Award.

About Axcel

Founded in 1994 by a group of Denmark’s largest financial and industrial institutions, Axcel is a Nordic private equity firm focusing on mid-market companies and has a broad base of both Danish and international investors. Axcel has raised five funds with total committed capital of around EUR 1.9 billion to date. These funds have made 48 platform investments, with more than 90 major add-on investments and 37 exits. Axcel currently owns 11 companies with combined annual revenue of around EUR 1.2 billion and some 6,000 employees.

 

Further Information: 

Axcel:

Director, Christoffer Müller

Tel: +45 29385366

E-mail: cm@axcel.com

 

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DCLI to acquire TRAC Intermodal’s domestic chassis fleet

eqt

Direct ChassisLink Inc. (“DCLI”), acquired by EQT Infrastructure II in June 2016, is a leading provider of marine chassis and asset management services to the US intermodal industry. As a result of the acquisition, DCLI will own, lease or manage approximately 136,000 marine chassis, as well as approximately 80,000 domestic chassis, for a total chassis fleet of over 216,000. In addition, through its REZ-1 asset management platform, the company manages over 86,000 domestic intermodal containers for third parties.

After combining the businesses, customers will benefit from a single source for intermodal marine and domestic chassis leasing services through DCLI’s expanded national footprint now encompassing all major ports and railway terminals in the US, and with the benefits of operating on the REZ-1 asset management platform.

“DCLI’s operating expertise in chassis management creates a natural strategic fit with TRAC Intermodal’s domestic fleet. We strongly believe in DCLI and are excited to support the management team through its growth. This acquisition in combination with DCLI and REZ-1 will create a unique intermodal infrastructure asset,” says Erwin Thompson, Partner at EQT Partners and Investment Advisor to EQT Infrastructure.

The transaction is expected to close in early January 2018, subject to customary closing conditions.

Read the full DCLI press release or visit DCLI’s website for more information.

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DCLI to acquire TRAC Intermodal’s domestic chassis fleet

eqt

Direct ChassisLink Inc. (“DCLI”), acquired by EQT Infrastructure II in June 2016, is a leading provider of marine chassis and asset management services to the US intermodal industry. As a result of the acquisition, DCLI will own, lease or manage approximately 136,000 marine chassis, as well as approximately 80,000 domestic chassis, for a total chassis fleet of over 216,000. In addition, through its REZ-1 asset management platform, the company manages over 86,000 domestic intermodal containers for third parties.

After combining the businesses, customers will benefit from a single source for intermodal marine and domestic chassis leasing services through DCLI’s expanded national footprint now encompassing all major ports and railway terminals in the US, and with the benefits of operating on the REZ-1 asset management platform.

“DCLI’s operating expertise in chassis management creates a natural strategic fit with TRAC Intermodal’s domestic fleet. We strongly believe in DCLI and are excited to support the management team through its growth. This acquisition in combination with DCLI and REZ-1 will create a unique intermodal infrastructure asset,” says Erwin Thompson, Partner at EQT Partners and Investment Advisor to EQT Infrastructure.

The transaction is expected to close in early January 2018, subject to customary closing conditions.

Read the full DCLI press release or visit DCLI’s website for more information.

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Lubbers Logistics Group completes the acquisition of Wagenborg Nedlift division

AAC Logo

Lubbers Logistics Group, the logistics provider to the oil and gas drilling industry, has completed the acquisition of the Special Transport divisions of Wagenborg Nedlift in the Netherlands and Wagenborg GmbH in Germany as per July 1, 2016. The acquired divisions will be fully integrated into the Lubbers organization and will continue under the brand name Lubbers. The acquisition is part of Lubbers’ strategy to further strengthen its position in the European energy logistics market. The divestment allows Wagenborg Nedlift, a specialist in horizontal and vertical heavy transport, to focus on its niche market: lifting, heavy transport and assembly.

Through the acquisition Lubbers Logistics Group expands its workforce by 89 employees and adds 73 trucks and 165 trailers to its existing truck and trailer fleet. The combination enables Lubbers to further expand its European network and by leveraging the expertise of the Wagenborg Nedlift employees, Lubbers expects to further optimize the service to its customers.

The divestment enables Wagenborg Nedlift to focus on its core activities: lifting, heavy transport and assembly. In addition, Wagenborg Nedlift secures good future prospects for the Special Transport division employees who will relocate to Lubbers.

In the coming transition period as well as in the more distant future, there will (continue to) be close cooperation between the two companies, in which the interests of the customer and the quality of service will come first and foremost.

About Wagenborg Nedlift: Wagenborg Nedlift is an expert in providing accurate, efficient and secure solutions for challenging logistical issues and offers a complete package of logistics services for lifting, heavy transport and assembly. Wagenborg Nedlift is active throughout Europe and beyond, including the oil and gas industry, petrochemical industry, the energy sector and the sectors construction and infrastructure. www.wagenborg.com

About Lubbers Logistics Group: Since 1929, Lubbers Logistics Group delivers professional and reliable transportation in the energy sector and has a European-wide network, with thirteen offices in eight different countries. Lubbers offers a number of adjacent logistics services such as drilling rig relocations, project management, recruitment services and offshore container rental. www.lubbers.net

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