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Succesful closing of Ceramic Tile Disributors acquisition

Aurelius Capital

Luxembourg/London, April 05, 2022 – AURELIUS is pleased to announce the successful closing of the acquisition of Ceramic Tile Distributors (“CTD”) in a carve-out transaction from parent company, Saint-Gobain (ISIN: FR0000125007). This is the fourth acquisition completed by AURELIUS’ co-investment structure.

CTD is a UK-based specialist supplier of high-quality ceramic tiles operating across 89 branches and four trading distribution hubs. The company predominantly sells tiles, tile adhesives, grout as well as associated tools and consumables for the preparation, laying, cutting and drilling of tiles. CTD’s leading B2B market position is supported by strong brand awareness of its Gemini product line and strong trading performance. In 2021, CTD generated revenues of approximately EUR 120 million.

AURELIUS sees plenty of growth opportunities for CTD in the UK market for tiles and fixing products that is estimated to be worth just under EUR 1.2 billion annually. CTD’s growth over the last twelve months is based on a clear and detailed strategy that shows ample of growth opportunities mainly through digitalisation and adopting an omni-channel approach, as well as focusing on the increasing demand for outdoor tiles.

AURELIUS will proactively work with CTD’s highly experienced management team to leverage its leading B2B market position by expanding its e-commerce offering and to continue the company’s operational development. Additionally, AURELIUS sees opportunities for new trade counter openings and new branch openings in key locations across the UK to further stimulate revenue and profit growth.

AURELIUS was advised on the transaction by Deloitte (M&A), Eversheds (Legal) and Interpath (Tax).

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Roman Krislav Joins Boyne Capital as Managing Director

Boyne Capital

MIAMI, FL – (April 5, 2022) Boyne Capital (“Boyne”) is pleased to announce that Roman Krislav has joined the Firm as Managing Director. Roman will be involved in all aspects of the investment process including sourcing, due diligence and execution of post-closing growth and operations initiatives.

Roman brings over 19 years of private equity and investment experience. Most recently, he was a Managing Director at H.I.G. Capital, where he spent 16 years and led a number of successful investments in the business services, industrial and consumer sectors.  Roman began his career in Goldman Sachs’ Equity Capital Markets division in both New York and London.

Roman said, “I’m thrilled to be joining the Boyne team to help build on the firm’s outstanding investing track record.  Boyne’s strong team culture, flexible investing mandate, and dedicated operations team uniquely position the firm  to be able to invest, transform and successfully scale lower middle market businesses.”

Derek McDowell, Boyne Capital’s Managing Partner said, “We are delighted to welcome Roman to the Boyne team. He brings a tremendous track record of investing in the lower middle market and working with the types of companies that are core to the Boyne strategy.”

Roman received his M.B.A. from Columbia Business School. Roman graduated from the University of Pennsylvania with both a B.S.E. from The Wharton School and a B.A.S. from the School of Engineering and Applied Sciences, graduating both magna cum laude.

About Boyne: Boyne Capital is a Florida-based private equity firm focused on investments in lower middle market companies. Founded in 2006, Boyne has successfully invested in a broad range of industries, including healthcare services, consumer products, niche manufacturing, and business and financial services among others. Beyond financial resources, Boyne provides industry and operational expertise to its portfolio companies and partners with management to drive both company performance and growth. Boyne specializes in providing the capital necessary to fund corporate growth and facilitate owners’ and shareholders’ partial or full exit. www.boynecapital.com

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Partners Group invests in Climeworks, a leading Swiss designer, developer, and operator of Direct Air Capture plants

Partners Group

Baar-Zug, Switzerland; 5 April 2022

  • Partners Group co-led a CHF 600 million fundraising round for Climeworks
  • The funding will enable Climeworks to scale its Direct Air Capture capacity
  • Direct Air Capture technology is critical to reaching global net-zero goals

Partners Group, a leading global private markets firm, has agreed, on behalf of its clients, to invest in Climeworks (or “the Company”), a designer, developer, and operator of carbon dioxide Direct Air Capture (“DAC”) plants. Partners Group co-led a CHF 600 million fundraising round for the Company, together with GIC. Other new investors in the round included Baillie Gifford, Carbon Removal Partners, Global Founders Capital, M&G, and Swiss Re.

Founded in 2009 as a spin-off from ETH Zurich, Climeworks generates revenues through selling carbon dioxide removal services to businesses and individuals. Today, the Company has built 15 DAC plants, including the world’s largest DAC and storage plant, which started operations last September in Iceland. The capital from this equity round is anticipated to be used for capacity scale-up and geographical expansion – pilot projects have started in the US, the Nordics, and the Middle East – as well as investment into technology development and scaling the organization. The Company aims to become a dominant platform in the growing DAC market.

Partners Group will work with the management team and other investors to help scale Climeworks, as well as support its commercialization strategy and international expansion.

Alfred Gantner, Co-Founder and Executive Member of the Board of Directors, Partners Group, says: “Climeworks’ DAC plants are part of a portfolio of carbon removal technologies that are essential to achieving the Paris Agreement goals. The scalability of Climeworks’ technology makes it ideally suited to our transformational investing strategy and positions the Company to make a significant contribution to global carbon removal efforts. We are also attracted to Climeworks due to its close fit with our commitment to achieving lasting, positive stakeholder impact.”

Dr. Christoph Gebald, Co-Founder and Co-Chief Executive Officer, Climeworks, comments: “Climeworks is a pioneer in the DAC market. We have been working on our DAC technology for over a decade and are now in a position to scale-up. Partners Group’s extensive experience in building next-generation infrastructure platforms and working with fast-growing businesses makes them an ideal long-term partner. We look forward to working with the team alongside our other investors.”

Esther Peiner, Managing Director, Co-Head Private Infrastructure Europe, Partners Group, adds: “Investing in DAC technology has never been more important as the atmospheric concentration of CO2 globally continues to climb. Our research shows DAC technology benefits from several advantages over other emissions reduction technologies, such as location-agnosticism and limited land area requirements. Together with our co-lead investor GIC, we believe Climeworks has the potential to become a category leader in the DAC market due to its premium product and strong brand presence.”

Decarbonization is one of the giga themes guiding Partners Group’s thematic investing across asset classes and the firm has identified carbon management as a key focus within that theme. In a recent research paper, The next generation of decarbonization infrastructure, Partners Group estimated that approximately USD 250 billion will be spent on carbon management this decade, expanding to over USD 1.6 trillion by 2040.

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Liquidity Group Announces $775 Million in Capital Commitments led by Apollo and MUFG

Apollo Funds to Serve as a New Capital Partner for Liquidity’s Fast-Growing, Credit-Oriented Platform

Existing Investors MUFG Bank and Spark Capital Commit Additional Capital

TEL AVIV, Israel & NEW YORK & TOKYO–(BUSINESS WIRE)– Liquidity Group (or “Liquidity”) today announced that it has entered into agreements with respect to approximately $775 million in capital commitments year-to-date 2022, led by funds and entities managed by affiliates of Apollo (NYSE: APO). The commitments, which are subject to satisfaction of certain conditions, will include $425 million from Apollo Funds for a credit facility to help Liquidity scale its lending activity for late-stage technology companies, $300 million from MUFG Bank (NYSE: MUFG), for a debt fund JV named Mars Growth Capital, investing in future unicorn companies, as well as a $50 million SAFE note investment by Apollo Funds, MUFG Innovation Partners and Spark Capital.

Liquidity Group Announces $775 Million in Capital Commitments led by Apollo and MUFG (Photo: Business Wire)Liquidity Group Announces $775 Million in Capital Commitments led by Apollo and MUFG (Photo: Business Wire)

Liquidity Group, founded in 2018, is a credit-oriented fintech platform that invests, syndicates and automates growth and middle market lending for businesses around the world, providing capital mainly to later-stage technology companies. MUFG’s core banking subsidiary, MUFG Bank, is a key strategic capital partner to Liquidity, having invested equity venture capital in the business as well as formed multiple joint lending ventures.

For Apollo, the new commitments are consistent with its strategy to serve as a capital partner, enabler, and strategic investor in specialty lending companies with strong credit underwriting and innovative features such as Liquidity’s data-driven platform for credit formation, diligence, and monitoring. Apollo Partner, Joshua Black, will also join Liquidity’s Board of Directors.

“We’re pleased to form this new capital partnership with Liquidity Group to support their growth while helping our investors access attractive yield with strong credit fundamentals,” said Bret Leas, Apollo Partner and Global Head of Structured Corporate Credit & ABS. “Ron and his team at Liquidity are connecting technology borrowers and credit investors via an innovative, data-driven ecosystem, and we look forward to working with them as they scale the business.”

“The new capital partnership with Apollo and the continued and successful partnership with MUFG is validation of our founding vision to use artificial intelligence to transform the capital markets,” said Ron Daniel, Co-Founder and CEO of Liquidity Group. “Our patented technology offers unparalleled insight into private growth companies and enables robust predictions about their future. Working with Apollo will allow us to continue our own expansion, fund more companies, and provide reliable returns on investment to our partners. Josh, Jasen and the rest of the Apollo team have proved to be the right partners for this ride with their passion to adopt best of breed solutions.”

“MUFG is welcoming Apollo’s investment to Liquidity Capital. We are aiming to provide various financial services to start-up companies and to the ecosystem as a whole, together with the investing partners,” says Fumitaka Nakahama, Group Head, Global Corporate & Investment Banking Business Group, MUFG.

Liquidity has integrated machine learning and real-time data and performance monitoring across its platform to enhance, automate and expedite processes across the full credit investment lifecycle. Since inception, Liquidity has committed more than $1 billion in capital to fast-growing companies, including Etoro, Zetwerk & Homer.

Amit, Pollak, Matalon & Co. served as legal counsel to Liquidity. Paul, Weiss, Rifkind, Wharton & Garrison LLP and Shibolet Law Firm served as legal counsel to Apollo.

About Liquidity

Founded in 2018, the Liquidity Group is a global capital market credit automation company and fund manager providing growth capital through funds focused on the US, Asia, Europe and the Middle East. Liquidity Group’s subsidiary fund, Singapore-based Mars Growth Capital, and its partner MUFG [NYSE:MUFG] jointly handle the company’s South East Asia activity. It combines real-time data with proprietary machine learning technology to offer tailored financing that matches a company’s future growth. Liquidity Group operates three main divisions: Analysis, Capital, and Market Syndication, which together enable global lenders a complete cycle of scaled and quick credit deployment. www.liquiditygroup.com

About Apollo

Apollo is a global, high-growth alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of December 31, 2021, Apollo had approximately $498 billion of assets under management. To learn more, please visit www.apollo.com.

About MUFG

Mitsubishi UFJ Financial Group, Inc. (MUFG) is one of the world’s leading financial groups. Headquartered in Tokyo and with over 360 years of history, MUFG has a global network with approximately 2,500 locations in more than 50 countries. The Group has about 170,000 employees and offers services including commercial banking, trust banking, securities, credit cards, consumer finance, asset management, and leasing. The Group aims to “be the world’s most trusted financial group” through close collaboration among our operating companies and flexibly respond to all of the financial needs of our customers, serving society, and fostering shared and sustainable growth for a better world. MUFG’s shares trade on the Tokyo, Nagoya, and New York stock exchanges. For more information, visit https://www.mufg.jp/English.

For Apollo:
Noah Gunn
Global Head of Investor Relations
Apollo Global Management, Inc.
(212) 822-0540
IR@apollo.com

Joanna Rose
Global Head of Corporate Communications
Apollo Global Management, Inc.
(212) 822-0491
Communications@apollo.com

For Liquidity Group:
Jared Shapiro
The Tag Experience
(917) 553-4542
jared@thetagexperience.com

Source: Liquidity Group

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Audax Private Equity Announces Strategic Investment in Flow Control Holdings

Audax Group

Audax Private Equity (“Audax”) today announced it has completed a strategic growth investment in Flow Control Holdings (“FCH” or the “Company”), a premier provider of sanitary flow components to producers of foods, beverages and pharmaceuticals. Financial terms of the transaction were not disclosed. Phil Pejovich, CEO of FCH, will continue to lead the Company alongside the existing management team.

Based in Chicago, FCH specializes in providing highly engineered sanitary and high purity flow components (e.g. fittings, valves, hoses, pumps, and other components) for market-critical applications within the food, beverage and pharmaceutical industries around the world. The Company’s brands and products, including Steel & O’Brien and Ace Sanitary, encompass a broad assortment of highly engineered sanitary and high purity flow control components and services.

Mr. Pejovich said, “We are thrilled to have the backing of an experienced partner like Audax. With their support, we will be well-positioned to continue to expand our best-in-class portfolio of highly engineered flow control solutions to better serve our customers, suppliers, and employees.”

“We are excited to work with Phil and the management team at FCH. Under their leadership, the Company has differentiated itself in a large and highly fragmented market by establishing a broad portfolio of comprehensive solutions,” said Ryan Bruehlmann, Managing Director at Audax Private Equity. “We look forward to leveraging our prior experience to drive growth both organically and through strategic M&A.”

Don Bramley, Managing Director at Audax Private Equity, added, “FCH has built a solid business that is underpinned by a strong, dedicated sales team and a growing customer base. The Company is well-positioned to continue its strong momentum with our support.”

Baird served as financial advisor to Audax and KPMG served as financial advisor to FCH. Ropes & Gray served as legal counsel to Audax and Dentons LLP served as legal counsel to FCH.

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AURELIUS portfolio company VAG closed acquisition of Brazilian supplier of valve solutions RTS

Aurelius Capital
  • Deal increases VAG’s geographical reach and product offering in Brazil and Latin America
  • Acquisition supports VAG’s ambition to strengthen its position as the leading supplier of water and wastewater valves on a global scale
  • AURELIUS` fifth add-on acquisition in 2022, underlining buy-and-built strategy

Munich/Mannheim/São Paulo, April 4, 2022 – VAG, a portfolio company of AURELIUS Equity Opportunities SE & Co. KGaA (ISIN: DE000A0JK2A8), closed the acquisition of RTS (Brazil), a supplier of valve solutions, from the company’s previous owner. RTS’ well-known market position and customer base looks set to allow VAG to expand its geographical reach along with complementary product portfolios of the two companies. This will allow VAG to offer a broad range of high-quality water flow control solutions for water treatment and distribution, wastewater management, dams and hydropower.

RTS is a leading Brazil-based manufacturer of valve solutions used in water, wastewater and other industries such as energy. The company is headquartered in Guarulhos – São Paulo, Brazil, and has a well-established customer base in its home country. Becoming a VAG Group brand, RTS will support VAG’s growth in Brazil and other Latin American markets. RTS and VAG have been collaborating since 2004 and RTS has been an official VAG distributor in Brazil since 2012.

“We are very pleased about this opportunity for VAG and RTS to join forces and offer even better products and services to our customers in Brazil and Latin America with RTS becoming one of VAG’s Group brands. RTS has been a trusted partner of VAG for many years, so our two companies already know each other very well. We are confident that together we will be able to respond to our customer needs in Brazil better than ever before”, says Dr. Jan Nopper, CEO of VAG Group.

“This acquisition will further strengthen VAG’s position in the region towards a market leading position. It is our fifth add-on acquisition in 2022, underlining AURELIUS’ highly successful buy-and-built strategy of value creation for both our portfolio companies and our investors.” says Matthias Täubl, CEO of AURELIUS Equity Opportunities SE & Co. KGaA.

AURELIUS/VAG were advised on the transaction by KPMG (Financial, Labour, Tax) and Machado Meyer (Legal).

About VAG Group

VAG is one of the leading suppliers of valves for water treatment and distribution, wastewater systems, dams and hydropower. It belongs to the AURELIUS Group since November 2018. VAG is known throughout the world for its market-leading water valves since 150 years. The company is active in both the production and distribution of standard products and the global project business.

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Apollo Hybrid Value Raises $4.6 Billion for Second Flagship Fund

Assets Increase by more than 40% from Fund I to Fund II Driven by Strong Support from New and Existing LPs

NEW YORK, April 04, 2022 (GLOBE NEWSWIRE) — Apollo (NYSE: APO) today announced that its Hybrid Value business has closed its second flagship fund, Apollo Hybrid Value Fund II (HVF II), raising approximately $4.6 billion. The fund received strong support from both new and existing limited partners committing to the all-weather strategy, which seeks to provide flexible equity and debt capital solutions to companies.

Apollo Partner and Co-Head of Hybrid Value Rob Ruberton said, “We are very excited to close fundraising for HVF II, the second vintage in our flagship fund series. We are grateful for the continued support from our existing Limited Partners on the back of a successful Fund I and are thrilled to welcome a number of new investors into the franchise. We believe that our funds offer attractive, downside-protected returns that are differentiated from traditional private credit and private equity exposures. We are proud to have delivered strong results in our inaugural fund and look forward to building upon our success with our second fund.”

Matt Michelini, Partner, Co-Head of Hybrid Value and Head of Asia-Pacific at Apollo, continued, “Our Hybrid Value franchise was built to provide companies with strategic capital in all market environments, using Apollo’s integrated platform to offer sizable, bespoke solutions and greater speed and certainty. The strengths of our Hybrid Value business are becoming increasingly apparent as more and more companies partner with us for value-added growth capital, structured equity solutions to fund M&A, liquidity during difficult periods, and value realization events for shareholders.”

HVF II’s $4.6 billion in commitments is an increase of more than 40% over Hybrid Value Fund I, which raised $3.3 billion in 2019. The Hybrid Value team’s strong focus on structuring capital preservation, attractive yield, and equity upside has made the strategy particularly attractive to insurance companies, sovereign wealth funds, pension funds, endowments and other institutional clients and high-net-worth individuals. Hybrid strategies were a key strategic growth area for Apollo as presented at its 2021 Investor Day.

The Hybrid Value team continues to find what it believes to be highly attractive risk-reward opportunities for its limited partners, committing more than $1 billion of HVF II to-date, including preferred equity investments in WR Grace, Behavior Interactive and Global Schools Group, among others.

Paul, Weiss, Rifkind, Wharton & Garrison LLP served as fund counsel on the launch of HVF II.

About Apollo
Apollo is a global, high-growth alternative asset manager. In our asset management business, we seek to provide our clients excess return at every point along the risk-reward spectrum from investment grade to private equity with a focus on three business strategies: yield, hybrid, and equity. For more than three decades, our investing expertise across our fully integrated platform has served the financial return needs of our clients and provided businesses with innovative capital solutions for growth. Through Athene, our retirement services business, we specialize in helping clients achieve financial security by providing a suite of retirement savings products and acting as a solutions provider to institutions. Our patient, creative, and knowledgeable approach to investing aligns our clients, businesses we invest in, our employees, and the communities we impact, to expand opportunity and achieve positive outcomes. As of December 31, 2021, Apollo had approximately $498 billion of assets under management. To learn more, please visit www.apollo.com.

Contact Information:
For Investors:
Noah Gunn
Global Head of Investor Relations
(212) 822-0540
IR@apollo.com

For Media:
Joanna Rose
Global Head of Corporate Communications
(212) 822-0491
Communications@apollo.com


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Source: Apollo Global Management, Inc.

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CVC and Greenbriar announce recapitalisation of Radwell International

CVC Capital Partners

CVC and Greenbriar to support continued rapid growth and expansion

CVC Capital Partners VIII (“CVC Fund VIII”), has invested in Radwell International, LLC (“Radwell” or the “Company”), a global distributor of new and surplus industrial automation components. CVC Fund VIII is acquiring an interest in the Company from founder & CEO Brian Radwell and Greenbriar Equity Group, L.P. (“Greenbriar”), both of whom will remain significant shareholders going forward. Financial terms of the private transaction were not disclosed.

Founded in 1979, Radwell is a leading specialty distribution and light manufacturing business that provides new and refurbished industrial automation components for the repair and maintenance of production and processing equipment on plant floors. The Company focuses on the aftermarket for mission-critical components and is dedicated to keeping customers’ facilities operating efficiently. Headquartered in Willingboro, NJ, the company operates nine facilities in the United States, Canada, United Kingdom and Germany.

The investment from CVC Fund VIII will support Brian Radwell and the management team in executing against their multi-year expansion program focused on domestic and international growth as well as selective M&A opportunities across the business’s geographies and product sets.

Brian Radwell, President and CEO of Radwell, commented, “We have truly enjoyed working with Niall McComiskey and the Greenbriar team and are thrilled that they have reinvested in Radwell. Our partnership with Greenbriar enabled Radwell to significantly accelerate growth and innovation which allowed us to scale rapidly. We are also very excited to bring on CVC as a new partner, whose global resources and experience building businesses will enable us to pursue new avenues of growth in the US and worldwide. CVC’s values are fully aligned with our business and I am confident that we have chosen the perfect partner for the next stage of our development.”

James Christopoulos, Senior Managing Director at CVC, said, “Radwell is a fantastic business which has evolved into a leader, well-known for providing its customers with a unique and critical service. We value its employee-centric culture focused on continuous improvement and are delighted to partner with Brian and his excellent team. We look forward to supporting the next stage of Radwell’s growth domestically, internationally and through strategic acquisitions.”

Niall McComiskey, Managing Partner at Greenbriar, said, “Radwell is an incredibly special business and we are honoured to have supported Brian and the Radwell team as their first institutional partner. The Radwell team has built a market-leading automation MRO platform that is underpinned by unparalleled proprietary data and a passionate team with deep technical expertise. We are proud of our partnership with the management team, and we are excited to support the next chapter of growth alongside Radwell and CVC.”

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Creation of the commercial subsidiary of the Ligue de Football Professionnel

CVC Capital Partners

The LFP and a company owned and financed by funds managed by the investment company CVC Capital Partners (“CVC”) announce the signing of an investment commitment agreement in connection with the creation of the LFP’s commercial subsidiary and CVC’s minority investment in its capital.

Following the competitive investor search process conducted by the LFP since autumn 2021 and its entry into exclusive negotiations with CVC on 18 March 2022, the LFP General Meeting held today unanimously approved the creation of the commercial subsidiary and the firm investment commitment by CVC for a total amount of €1.5 billion in its capital, intended to support the development of the entire French football ecosystem. Most of this financial contribution will be paid to professional football clubs, another part will be intended for amateur football, the reimbursement of the PGE contracted by the LFP in 2020, the constitution of a reserve fund and the seeding of the commercial subsidiary in order to give it the means to achieve its ambitions.

In return for its investment in the commercial subsidiary, CVC will hold a 13.0% stake in its capital, valuing the entire capital of the commercial subsidiary at €11.5 billion.

This new partnership is a continuation of the structural reforms undertaken by the LFP in order to transform and accelerate the development of French professional football. It reinforces the LFP’s ambition to reposition France on the world podium of football leagues in the medium term, both in terms of sport and economy. As a pioneer in sports investment, CVC will put its expertise, experience and relationships at the service of the LFP’s commercial subsidiary and support its business development ambitions.

The LFP would like to thank all the stakeholders who made it possible to implement this project, first and foremost the professional clubs of Ligue 1 and Ligue 2 who unanimously approved the project, as well as the French State and the French Football Federation. Their unwavering support for the LFP project show the unity of French football to engage in this ambitious development project.

The completion of the transaction is expected by the end of July 2022, after consultation with the LFP’s employee representative bodies and the fulfilment of the usual conditions precedent, including in particular the obtaining of authorisations from the competition authorities.

Vincent Labrune, President, LFP, said: “This project is a major step in the development of French football and a historic step forward for sport in France. We are delighted with this alliance with CVC, a partner that perfectly fits our project for Ligue 1 and for French professional football. Beyond having chosen the candidate with the best financial offer, we needed a partner who will help us grow our future projects and understands our DNA. CVC’s unique expertise in media and sport (F1, Moto GP, Six Nations, Volleyball, Football, etc.) was also a structuring point for us. In terms of governance and style, CVC will support the LFP, the commercial company and its leaders, who will benefit from its global network, to achieve the ambitious objectives we have set ourselves.

“We were also particularly sensitive to CVC’s ‘French Touch’. It is a European player with deeply French roots, able to offer a tailor-made approach adapted to our national challenges but also in all territories. For all these reasons, I am absolutely convinced that CVC will be a reliable, expert partner and up to our challenges in the months and years to come.

“Finally, I would like to thank personally and on behalf of French professional football the President of the Republic and his government for having made this project possible at the legislative level. I also do not forget the French Football Federation and its President, Noël Le Graët, for its constant support. Finally, and above all, I salute all the LFP teams for their unwavering commitment over the past 16 months to this project, and without which it would not have been possible.”

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Ratos acquires NVBS and Ratatek – creates Nordic challenger in railway infrastructure

Ratos

Regulatory Information 2022-03-30

Ratos has signed an agreement to acquire 74% of the Swedish company NVBS Rail Group Holding AB (NVBS), which in turn has signed an agreement to acquire 100% of the Finnish company Ratatek. NVBS will become a Nordic platform company for Ratos in the attractive and growing railway infrastructure market, with a presence in Sweden, Finland and Norway. Together, the companies had pro forma revenues of SEK 978m in 2021, with adjusted EBITA of SEK 113m. The cash-free, debt-free purchase price for 100% of both companies amounts to SEK 1,066m. NVBS will belong to Ratos business area Construction & Services.

“Maintenance and upgrades of critical infrastructure is an attractive and growing niche in which Ratos established a position in road maintenance in 2021. With the acquisition of NVBS, we are now broadening our offering into the expanding railway market – a market where NVBS and Ratatek have excellent prospects for continued organic and acquisition-driven expansion,” says Christian Johansson Gebauer, President Business Area Construction & Services at Ratos.

NVBS is a fast-growing player in maintenance, improvement and construction of critical railway infrastructure in Sweden and Norway. The company specialises in rail-related services, including groundwork, track, electrical, signal and telecom. Through a strong focus on efficient operations and meeting the customer’s expectations, NVBS reported an organic compound annual growth rate (CAGR) of 30% between 2019 and 2021. The company had pro forma revenues of SEK 719m in 2021, with adjusted EBITA of SEK 85m.

Ratatek specialises in the design, installation and maintenance of overhead contact lines and electrical systems on tram and railways, with operations in Finland and Sweden. The company already has a successful partnership with NVBS in the Swedish market. Ratatek’s key personnel will be part of the owner group in NVBS in conjunction with the transaction. Ratatek had sales of EUR 25.5m in 2021, with adjusted EBITA of EUR 2.7m.

“With the acquisition of NVBS, Ratos has secured a majority shareholding in one of the Nordic region’s fastest-growing players within railway infrastructure. We are impressed with NVBS’s culture, entrepreneurial spirit and decentralised governance model, which has enabled the company’s rapid growth. The fact that the founders and key personnel of NVBS have chosen to retain a holding of 26% is very positive, and we look forward to building a strong Nordic market challenger together,” continues Christian Johansson Gebauer.

“Since 2012 when NVBS was founded it has established a strong position as a fast-growing contractor specialising in railway environments with a focus on profitable growth in the Swedish market. With Ratos as our new principal owner, we can now take the next step in our growth journey, and we see significant opportunities to expand our business model to new geographic areas,” says David Skalin, President and CEO of NVBS.

“The acquisition of NVBS and Ratatek is an excellent match for the business area and will also contribute to, and themselves be able to leverage, soft synergies with other companies,” says Jonas Wiström, President and CEO of Ratos.

Acquisition financing and valuation and impact on Ratos
NVBS and Ratatek had pro forma sales of SEK 978m in 2021, with adjusted EBITA of SEK 113m. The cash-free, debt-free purchase price (enterprise value) for 100% of the shares in both companies amounts to SEK 1,066m, corresponding to an EV/EBITA multiple of 9.4x for the full-year 2021. The acquisition was financed with Ratos’s own funds and bank financing. The founders have chosen to remain as owners of NVBS in conjunction with Ratos’s acquisition, with a holding amounting close to a quarter of the shares in the company. After a certain period of time and at the earliest in full after seven years, both the founders and Ratos have a customary right to demand that Ratos acquire the shares at market value.

For the Ratos Group, the acquisition corresponds to a pro forma increase in sales of just over 4% and an increase of nearly 7% in EBITA for full-year 2021. The Ratos Group’s leverage in December 2021 amounted to 0.2x EBITDA and increase pro forma to 0.6x EBITDA.

Terms of the transaction
The acquisition, which is conditional on customary competition clearance, is expected to be completed in May 2022.

For further information:
Jonas Wiström, President and CEO, Ratos, +46 8 700 17 00
Christian Johansson Gebauer, President BA Construction & Services, Ratos, +46 8 700 17 00
Josefine Uppling, VP Communication, Ratos, +46 76 114 54 21
David Skalin, President and CEO, NVBS, +46 763 166 136

This is information that Ratos AB is obliged to make public pursuant to the EU Market Abuse Regulation. The information was submitted for publication, through the agency of the contact persons set out above, at 08:00 a.m. CEST on 30 March 2022.

About Ratos
Ratos is a business group consisting of 13 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2021, the companies have approximately SEK 35 billion in sales. Our business concept is to develop companies headquartered in the Nordics that are or can become market leaders. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas for Ratos. Everything we do is based on Ratos’s core values: Simplicity, Speed in Execution and It’s All About People.

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