SupplyStack raises €5 million to continue expansion in Europe

Fortino Capital

Antwerp, April 6th 2019 – SupplyStack announces the closing of its series A funding round of €5 million, led by Participatiemaatschappij Vlaanderen and Mainport Innovation Fund and existing investor Fortino Capital. SupplyStack delivers an easy-to-integrate and flexible visibility solution that monitors transport orders in real-time. “SupplyStack helps supply chain and customer service departments to contribute to a better customer experience and overall supply chain collaboration. With this new funding in place, we can tap into new European markets and go after our ultimate goal: turning the supply chain into a competitive differentiator and putting the end customer first”, explains Nick Poels, CEO of SupplyStack.  

Visibility and collaboration

SupplyStack announces the closing of its series A funding round of €5 million, led by Participatiemaatschappij Vlaanderen and Mainport Innovation Fund and existing investor Fortino Capital. SupplyStack launched its software in 2013 with the goal of helping B2B organisations obtain supply chains that are predictive, data-driven, deeply automated and continuously optimizing for business returns and environmental impact. The SupplyStack interface uses visibility and collaboration as a core capability to drive transport execution and automate work where possible. “It’s our mission to remove friction in the supply chain. We bring users, systems and data together to offer end-to-end, real-time transport visibility that drives outcomes”, states Nick Poels, CEO of SupplyStack.

Last year, SupplyStack was recognized as a notable vendor by Gartner in the ‘European Context for Transportation Management System’. Currently, numerous leaders in the industry, including Sony, Umicore, DHL, Duracell and Atlas Copco, are using SupplyStack to accomplish their transport management. Transportation management systems (TMS) are becoming less expensive and easier to own. Now, companies of any size can get in the game. “As we evangelise customer centricity to our customers, it’s our duty to practise what we preach. We want to provide an exceptional user experience so users don’t simply adopt SupplyStack. They have to love it because it’s effortless and intuitive.”

Supply chain as a competitive advantage

For today’s companies a competitive operation cost is key but according to SupplyStack a customer-centric supply chain is what should be the strategic business priority. As B2C experiences are influencing B2B expectations – also known as “The Amazon Effect” – the current supply chain systems are under pressure. According to Gartner, 75% of B2B organizations have immature capabilities when it comes to customer experience management. As customer retention is cheaper than acquisition, actively investing in customer satisfaction offers great value.

“In general, corporate customer experience is managed by the sales and marketing departments, in spite of the fact that the supply chain plays a key role in the customer journey. Organisations should realise that a late delivery can disrupt or disappoint and that an expedited delivery can delight or save a life. Putting the customer first will turn your supply chain into a competitive advantage”, explains Poels.

LogTech is the new FinTech

The investment is a testimony to how quickly the logistics technology sector is growing. The industry is experiencing an influx of venture capital and new companies that has never been experienced before. “Logistic technology venture capital investments have seen rapid growth for the past few years. It’s an industry that has been historically slow-moving: using spreadsheets, emails, and phone calls. This is rapidly changing now: LogTech is becoming what FinTech was 10 years ago”, states Poels.

“The last few years have been fantastic. Together with our clients, we are building the technology, growing the team and finding our unique spot,” says Poels. “We’re really motivated to give supply chain and customer service professionals true satisfaction by providing them with the tools to be successful in their everyday job. It’s time to co-create a new normal within the transportation management industry.”

Growth potential

This new round of investment will allow SupplyStack to expand further in the countries in which they are already present, not to mention tapping into new European markets.

Fortino Capital is investing in SupplyStack for the second time. “We have supported the management team over the past three years and are excited to assist them during the next phase of further scaling-up  their company. The team has the skills and focus to drive digitalisation in the logistics sector, and deliver a more efficient supply chain to its clients,” says Steven De Troyer, Investment Director at Fortino Capital.

“We strongly believe in SupplyStack, not only because their technology delivers freight cost savings for the customer, but also because SupplyStack puts customer focus and customer information at the heart of its business”, explains Isabelle Tennstedt, Senior Investment Manager atParticipatiemaatschappij Vlaanderen. “That is exactly what determines whether a company can distinguish itself from the competition in a digital age.”

SupplyStack can also count on support from the Netherlands with investments from Mainport Innovation Fund (Schiphol, KLM, the Port of Amsterdam, NS and TU Delft). “This is the first time we’re investing in a Belgian start-up. The growth that SupplyStack has been able to achieve in only a few years’ time is impressive, along with the fact that SupplyStack – instead of other established software providers – earned the trust of large organisations to support them in their logistics operations”, says Thijs Gitmans, Fund Manager at Mainport Innovation Fund.

About SupplyStack

SupplyStack delivers an easy-to-integrate and flexible visibility solution that monitors transport orders in real-time in order to facilitate collaboration, drive execution and automates work where possible. Currently, numerous leaders in the industry, including Sony, Umicore, DHL, Duracell and Atlas Copco, are using SupplyStack to accomplish their logistics and transport management. In 2018, SupplyStack was recognized as a notable vendor by Gartner in their ‘European Context for Transportation Management System’.

For more information: www.supplystack.com

About Fortino Capital

Fortino Capital invests in small and medium-sized businesses with growth potential, across Europe with a focus on Benelux. Fortino Capital believes in the potential of visionary entrepreneurs with a focus on technology, E-commerce and digital transformation. Fortino Capital brings a strengthening of capital, expertise and experience in the areas of innovation, strategy and growth.

For more information: www.fortino.be

About PMV

PMV is an investment company focussed on the economic future of Flanders. PMV finances promising companies from the very start to growth and internationalization. PMV offers tailor-made financial solutions for every entrepreneur with a solid business plan and a strong management team, by providing (venture) capital, loans or guarantees. PMV has a portfolio of about EUR 1.2 billion in assets under management.

For more information: www.pmv.eu

About Mainport Innovation Fund II

MIF II aims to accelerate innovation in logistics, transport and aviation. It was founded in 2015 by Schiphol, KLM, TU Delft, NS and Port of Amsterdam, together with NBI Investors, the fund manager. MIF II has invested in ViriCiti, Mobian, We4Sea, Synple, C Teleport and SupplyStack. Its predecessor Mainport Innovation Fund I has invested in Casper (exit), Multi Pilot Simulations (exit), Versa (previously FastTrack Company), Ampyx Power (exit), Robin Radar, MI Airline, Snocom, Eye on Air, Undagrid and Calendar42 (exit).

For more information: www.mainportinnovationfund.nl and www.nbi-investors.nl

3i agrees to invest in Regional Rail to support growth

3I

3i Group plc (“3i”) today announces an agreement to invest in Regional Rail, LLC (“Regional Rail”), a leading owner and operator of short-line freight railroads and rail-related businesses throughout the Mid-Atlantic U.S.

Formed in 2007, Regional Rail provides freight transportation, car storage, and transloading services in New York, Pennsylvania, and Delaware across three railroads and over 155 miles of track connecting into a diversified Class 1 railroad network. In 2018, the company moved over 13,000 carloads while serving over 70 customers across a diversified set of end-user markets including heating, fuel blending, agriculture, chemicals, and metals. The company’s wholly owned subsidiary, Diamondback Signal, is the premier provider of rail-crossing installation and maintenance services to over 100 public- and private-sector customers across 20 states.

Since inception, the company has seen steady growth of its existing line traffic, successfully expanding to neighbouring regions and into value-accretive, infrastructure services.

Regional Rail will represent 3i’s third infrastructure investment in North America since 2017 and will serve as 3i’s rail infrastructure platform for future investment in the sector.

Rob Collins, Managing Partner, 3i North American Infrastructure, commented:

“This is an exciting opportunity to partner with an established management team as we seek to put additional capital to work in North American rail infrastructure. The North American transportation market is rapidly evolving and Regional Rail is well positioned to benefit from those changes with future acquisitions.”

Al Sauer, CEO, Regional Rail, added:

“We look forward to working with 3i as we continue to focus on servicing our existing customers, growing economic development in our local communities, and expanding into new regions through strategic partnerships and acquisitions. We see tremendous opportunity in the sector and are proud to have the support and asset management expertise of 3i behind us.“

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Amethyst partners with Now Group

Cathay

Amethyst Group Limited (“Amethyst”) is delighted to announce a new partnership with Now Group UK Limited (“Now Group”) to provide its warehousing and distribution services.

Amethyst is a 3PL provider and offers full warehousing and distribution services to its clients from its bases in Warwickshire and Kent. Amethyst opened a new Super Hub at its Wellesbourne site in 2017 to provide high tech modern facilities to its client base. Amethyst services a number of well-known clients in toys & games, baby and fashion sectors. Amethyst, together with its sister company PNC Global Logistics, can also offer freight forwarding services Amethyst can manage your stock from factory to customer.

Now Group is a distributor of Outback BBQ’s, Bose, Denon and other high-end Audio equipment and personal breathalysers.

Allan Fosbrook, Amethyst Sales Director said, “Now Group have a great range of products and we are excited to be working with them to deliver a high quality responsive service”.

Hunter Abbott from Now Group said, “we are delighted to be working with Amethyst. We chose them because we required a company that knows how to deliver on time and in full as our brands required this to grow”.

Amethyst and PNC are part of the Cathay Investments group. For more information see www.amethystgroup.co.uk , www.pncgl.com , www.cathay-investments.com or contact Allan on 07730 982907, afosbrook@amethystgroup.co.uk.

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Virginia International Gateway Takes Delivery of Four Giant Cranes

Alinda

Marking the latest development in the Phase II Expansion at Virginia International Gateway, four new STS cranes arrived safely at the terminal in early January 2019. The cranes are the largest in the Americas and able to service the biggest ships calling at the United States today and for the foreseeable future. Please watch the video of this historic project milestone, “Building the Capacity for Greatness.”

Good progress is being made on the $320 million Phase II Expansion which will double Virginia International Gateway’s capacity to more than two million TEUs (Twenty Foot Equivalent Container Units). Four newly-constructed inbound truck gates and the first of two newly-configured rail bundles, served by two semi-automated cantilever rail-mounted gantries, are now operational. In addition, the 800-foot expansion of Virginia International Gateway’s wharf is complete and almost all 13 new container stacks supported by 26 new rail-mounted gantry cranes are in service. The project is proceeding on schedule with completion scheduled for mid-2019.

The Port of Virginia handled record volumes during calendar year 2018, at 2.85 million TEUs. Further enhancing the Port’s ability to effectively serve their ocean carrier customers, full Federal authorization was secured in 2018 for the ‘Wider, Deeper, Safer’ effort, a strategic project to deepen the Norfolk Harbor to 55 feet and widen portions of the commercial navigation channels. Together with the Phase II Expansion at Virginia International Gateway, the Port of Virginia is well positioned to become the deepest and safest port on the U.S. East Coast capable of handling the increasingly large container ships that underpin the next evolution in international trade.

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The Leipzig and Erfurt based logistics platform company Pamyra.de has successfully completed a seven-digit seed financing round

BM-T

The Pamyra.de team is pleased to have reached an important milestone in the company´s development: its first seven-digit investment that will provide the needed capital to further pursue its rapid growth strategy. The round was led by Beteiligungsmanagement Thüringen GmbH (bm|t), which made the investment together with the Technologiegründerfonds Sachsen (TGFS) and three private business angels. InnoEnergy, the previous lead investor from the pre-seed round, also participated in the capital increase. Felix Wiegand, founder and CEO of Pamyra.de GmbH considers this investment a «great demonstration of trust from current and new investors in the Pamyra.de team.»

The bulk of the investment will be deployed in product development and marketing. In addition, a head of business development has been added to the team. «We have a lot to accomplish in the coming year and look forward to maximizing the potential of our unique platform,» commented Wiegand. With additional developers, a bigger marketing budget, and further additions to the team, Pamyra.de is well armed for rapid growth. Wiegand added, «it’s great to see how the team has grown and united around only one goal: to make Pamyra.de the premier discovery and booking platform for transport and logistics.»

Although the development of Pamyra.de has been impressive, the competition for the large market in the digitalization of logistics services is intense. Wiegand is confident that the Pamyra.de team is up to the challenge: «With our dynamic comparison concept, we created an unprecedented offering in the logistics industry that creates value for both senders and logistics companies.» With this USP Pamyra.de is convinced it will reshape the logistics industry and continue on its strong growth path.

 

About Pamyra GmbH:
Pamyra.de is an independent comparison and booking platform for transport and logistics. The company was founded in 2016 by Felix Wiegand and Steven Qual in Erfurt. In March 2017, the platform officially went live. With its service Pamyra.de enables the customer to get an overview of the transport offers on the market and to book a suitable offer within seconds.
www.pamyra.de

 

A three-cluster symbiosis as a driver of exports in Kymenlaakso

Finnvera

19.11.2018

Port operations, the forest industry and the energy sector form a close-knit union in Kymenlaakso. In the coming years, the clusters’ investments will rise to even hundreds of millions of euros. The EUR 100 million LNG terminal being built in Hamina is Wärtsilä’s and its partners’ investment in new energy technology.

The ports of Kotka and Hamina merged their operations seven years ago. This strengthened HaminaKotka’s position as Finland’s largest general port, and now 18 per cent of Finnish exports of goods pass through the port.

Nearly 17 million tonnes of goods leave from or arrive in HaminaKotka this year. The forest industry accounts for approximately 40 per cent of this.

After a long time, investments are also increasing. According to Kimmo Naski, CEO of the Port of HaminaKotka, investments started two years ago.

“At the moment, the ongoing projects include the construction of the largest pulp centre in the Nordic countries in Mussalo, Kotka, and the giant module and LNG projects in Hamina. There is also the Nord Stream 2 gas pipeline project under way in Mussalo, with HaminaKotka as its central port,” says Naski.

The total value of all the investments approaches EUR 200 million. Markus Laakkonen, Finnvera’s Regional Director of Southern Finland, speaks about the rise of traditional industry in Kymenlaakso.

“Even ten years ago, the atmosphere was completely different, with paper mills being closed down. The forest industry has undergone a major transformation. UPM is currently planning to build a new biorefinery in Kotka. Upon realisation, it would be a billion-class project,” notes Laakkonen.

A close-knit network of enterprises has emerged around the Port of HaminaKotka, consisting of enterprises operating in the forest industry, the chemical industry and the energy sector as well as small-scale industry and subcontracting chains.

Merely in the port area, there are approximately 170 enterprises, and the cluster employs, directly and indirectly, 7,000 people. When the forest industry is included, the impact on employment multiplies.

“Subcontracting enterprises have many investment projects under way. Now it’s time to replace machinery and equipment. In addition, the number of transfers of ownership is increasing,” says Laakkonen.

Getting the LNG infrastructure in order

During the past few years, LNG, or liquefied natural gas, has adopted a more prominent role especially in ship traffic. The main owners of the LNG terminal being built in Hamina are Hamina Energy Ltd and the Estonian enterprise Alexela. The terminal supplier Wärtsilä is a minority investor.

Tuomas Haapakoski, Director, Financial Services at Wärtsilä, says that one of the background factors for the popularity of LNG is the fact that emission limits are becoming stricter. A global sulphur limit will enter into force in ship traffic in 2020.

“LNG is also linked with electricity generation and consequently with Wärtsilä’s gas power plants as LNG is storable energy. The role of gas power plants is changing as the share of renewable energy, such as solar and wind power, increases in electricity generation. Renewable energy needs to be complemented with flexible load following power that can be taken into use quickly, using cleanly burning natural gas,” comments Haapakoski.

According to Haapakoski, the terminal includes a 30,000-cubic-metre storage tank where liquefied natural gas is received from a ship. From the terminal, LNG is delivered to clients with lorries and ships or re-gasified and delivered via the natural gas network.

The total terminal investment amounts to approximately EUR 100 million. The Hamina terminal is Wärtsilä’s third LNG terminal project in Finland. The other two are in Tornio and Raahe.

“It’s all about building the basic LNG infrastructure in Finland, a project we want to be involved in. The terminals contribute to Wärtsilä’s strategy of making maritime traffic more environmentally friendly as LNG is low-emission ship fuel. We developed multi-fuel ship engines ages ago, but LNG distribution networks are only just developing,” explains Haapakoski.

The Export Credit Guarantee Act amended – investments in Finland

In financing the terminal investment, Wärtsilä and other owners took advantage of the amendment to the Export Credit Guarantee Act four years ago.

Before the legislative amendment, Finnvera could support Finnish enterprises by granting export credit guarantees and export credits for foreign projects. Now the export credit guarantee can also be granted for domestic projects if the investment promotes exports.

“I believe that this is useful for many enterprises. After all, foreign competitors offer export financing solutions also for projects to be carried out in Finland. It would have been a bad situation indeed if the selection of a domestic supplier had ruled out the opportunity of using export financing for investments in Finland,” notes Haapakoski.

Finnvera’s financial instrument for foreign investments goes by the name of the Buyer Credit Guarantee. It is a security that is granted for a credit received by the buyer and that protects the creditor, usually the bank, from risks related to repayment. Arranging the financing for the buyer helps the Finnish export company to secure the deal.

A similar guarantee arrangement for domestic investments is known as a Finance Guarantee.

“The Hamina terminal is an investment that promotes exports, in particular as LNG becomes more common as ship fuel. HaminaKotka is one of the largest ports in Finland, and it has many export companies as its clients,” says Riitta Leppäniemi, Finnvera’s Finance Manager.

According to Leppäniemi, there have been few financing projects of this kind in the last four years. The best-known of these is the bioproduct mill built in Äänekoski that was a billion-class investment.

FACTS: Kymenlaakso comes fourth
  • Kymenlaakso is the fourth largest export region in Finland after Uusimaa, Varsinais-Suomi and Pirkanmaa.
  • According to Customs’ statistics from last year, the region had nearly 350 export companies.
  • The forest industry is still essential for the region, and Southeast Finland is the largest forest industry cluster in Europe. In Kymenlaakso, there are many pulp, paper and board mills as well as sawmills.
  • The main logistics artery consists of the E18 motorway, Finland’s largest general port HaminaKotka and the rail network.
  • Last year, ships transported nearly 11 million tonnes of goods from the Port of HaminaKotka. This represented a year-on-year increase of 12 per cent. A total of 3.8 million tonnes of goods arrived in HaminaKotka.
  • Read more about credit risks in export trade here.
  • Read more about our working capital for export products here.
  • Read more about financing for the buyer here.

Caption: This LNG tanker represents modern maritime traffic. The Hamina terminal is Wärtsilä’s third LNG terminal project in Finland. The other two are in Tornio and Raahe. “It’s all about building the basic LNG infrastructure in Finland, a project we want to be involved in” says Wärtsilä’s Director of Financial Services Tuomas Haapakoski.

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CVC Capital Partners Fund VII agrees to acquire minority stake in DKV Mobility Services Group

CVC to acquire 20% of European leader in cash-free services for transportation, toll and further mobility services.

CVC Capital Partners Fund VII (“CVC”) today signed an agreement to acquire a 20-percent stake in DKV Mobility Services Group (“DKV”). The family shareholders, who are currently the sole owners of the company, will remain majority shareholders with an 80-percent stake following the closing of the transaction. The parties have agreed not to disclose the purchase price. The transaction is subject to the customary approval process by the relevant regulatory authorities. Closing is expected for the first quarter of 2019.

DKV is a European leader in cash-free services en route for commercial goods and passenger transportation, toll and further mobility services. To its 170,000 customers in more than 40 European countries, the company offers the industry’s largest supply network with more than 72,000 acceptance points. Throughout Europe, DKV generated sales of 7.2 billion Euros in 2017 and its workforce consists of about 1,000 employees. Since its incorporation in 1934, DKV has become a leading, award-winning mobility services provider with over 3.1 million fuel cards and on-board units in circulation.

CVC will support the company in accelerating its successful growth strategy in close cooperation with the majority owners and management. Strategic priorities will include the further digitalisation of DKV’s business model and the extension of its service offering. Going forward, DKV will extensively benefit from CVC’s entrepreneurial expertise and large international network.

In the past years, CVC has partnered with numerous family entrepreneurs and founders, with the CVC Funds investing in their companies. CVC Funds’ portfolio in Germany impressively proves this approach: The founders and family shareholders of Douglas and Tipico are still co-invested in the companies. Recently, CVC has engaged in a strategic partnership with the Messer family, in order to create a globally leading specialist for industrial gases.

UniCredit and Commerzbank serve as financial advisors to family shareholder, Taylor Wessing as legal counsel. Royal Bank of Canada is mandated as financial advisor to CVC, while GÖRG serves as CVC’s legal counsel.

 

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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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