Category Archives: News

Jüsto Announces USD $65 Million Investment Led by General Atlantic, Marking Largest Series A Raised in Latin America

Growth capital to fuel Jüsto’s expansion into a leading online grocer across Mexico and Latin America

February 9, 2021

Jüsto (or “the Company”), a leading online grocer in Mexico, today announced it has raised a USD $65 million Series A investment led by General Atlantic, a leading global growth equity firm, with participation from existing investors including Foundation Capital and Mountain Nazca. The growth investment marks the largest Series A round raised in Latin America[1] and will support Jüsto’s future strategic initiatives, including the expansion of the Company’s geographic footprint across Mexico and Latin America, the enhancement of its last-mile logistics infrastructure, marketing initiatives, and additional working capital needs.

Jüsto was founded in 2019 by CEO Ricardo Weder as one of Mexico’s first vertically-integrated, online grocery platforms with no physical store presence. Over the past 18 months, Jüsto has developed into an emerging leader in the transformation of the digitally-enabled online grocery experience, powered by its cutting-edge technology and seamless purchasing platform. The business experienced significant acceleration over the course of 2020, with 16x revenue growth and positive traction across user retention, frequency, and average order value.

With this growth investment, Jüsto will focus on accelerating its next phase of growth as it aims to disrupt the existing grocery ecosystem in Latin America, a market that represents a USD $325 billion opportunity. Jüsto, which translates to “fair” in Spanish, is committed to providing high-quality products, fair practices, and new distribution avenues to suppliers, as well as competitive prices, lower transaction costs, and improved convenience to consumers by eliminating intermediaries in the supply chain.

“Our mission at Jüsto is to become Latin America’s favorite supermarket within the next decade. We strongly believe that this vision, combined with our expertise in technology, logistics, and customer service, will lead to an even more seamless, more affordable online shopping experience for our consumers,” said Ricardo Weder, Founder & CEO, Jüsto. “We are beyond thrilled to take our vision to the next level alongside General Atlantic and look forward to harnessing the firm’s global resources and expertise in consumer businesses and technological enablement to aid Jüsto in meeting the rapidly-growing demand for our services.”

Mr. Weder brings strategic and digital expertise, having previously served as President of Cabify, a leading ride-hailing platform in Spain and Latin America, where he led its operations and expansion efforts. Mr. Weder has prioritized fostering a socially and environmentally responsible culture at Jüsto, as demonstrated by the Company’s efforts to develop fair trade agreements with its suppliers; leverage AI to forecast demand, create efficiencies, and reduce food waste at its micro-fulfillment centers; and reduce single-use plastic from packaging. Jüsto also contributes to its communities by offering a high-quality, broad offering of products from both large consumer products companies, as well as from smaller local producers – helping to strengthen the economic activity of rural and semi-rural communities – at competitive and fair prices.

“Mexico is at an inflection point in its transition to a digital economy, and we see Jüsto as leading the way in the high-growth online grocery space with its technology-centric, mission-driven approach,” said Luis Cervantes, Managing Director and Head of Mexico City, General Atlantic. “Under Ricardo’s leadership, we believe Jüsto is positioned for significant expansion as it disrupts and transforms the legacy grocery value chain.”

“In the time since its establishment, the Jüsto model has quickly resonated with consumers, who are looking for new ways to buy groceries digitally, as well as with suppliers, who are seeking more direct engagement within the ecosystem,” added Martin Escobari, Co-President, Managing Director and Head of Latin America, General Atlantic. “We look forward to leveraging our deep expertise in helping businesses scale across Latin America in support of Jüsto’s next chapter of growth.”

As part of the transaction, Luis Cervantes and Zeev Thepris, Vice President at General Atlantic, will join Justo’s Board of Directors. Jüsto marks General Atlantic’s fifth investment in Mexico since 2014, when it first entered the country. Since then, General Atlantic has invested nearly USD $1 billion in high-growth Mexican companies.

Since its inception in 2019, Jüsto has raised more than USD $100 million, including a $27 million Seed Round last year led by Foundation Capital, alongside Mountain Nazca and with participation from FEMSA Ventures, S7V, Elevar Equity, Bimbo Ventures, Quiet Capital, Sweet Capital, H2O Capital, and SV LatAm Capital, among others.

Additional terms of the transaction were not disclosed.

[1] Source: Pitchbook. Includes Series A raised in Latin America in the past decade (January 2011 to January 2021) by a technology company.

Media Contacts

Mary Armstrong & Emily Japlon
General Atlantic media@generalatlantic.com

Manolo Fernandez
Jüsto manolo@justo.mx

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IVC Evidensia expands partnership to drive next phase of accelerating growth

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eqt

 

  • Europe’s largest veterinary care provider welcomes additional investment and renewed long-term commitment from largest shareholder EQT Private Equity
  • New minority investment from technology leader Silver Lake validates success to date and compelling opportunities ahead
  • The expanded partnership is expected to accelerate continued growth and further broaden IVC’s digitalization and innovation capabilities

IVC Evidensia (“IVC” or “the Company”), Europe’s largest veterinary care provider, announces an expanded partnership among its shareholders to support IVC in driving its next phase of accelerating growth. The aggregated new investment from the expanded partnership transaction totals €3.5 billion and values IVC at an enterprise value of approximately €12.3 billion.

Headquartered in Bristol, UK, IVC is a leading veterinary services provider with a network of more than 1,500 clinics and hospitals and approximately 22,000 employees across Europe. Founded in 2011, IVC operates a decentralized model promoting innovation and clinical freedom balanced with integrated support functions such as procurement, veterinary advisors and clinical boards. With the purpose of providing the world’s best veterinary services by caring for pets and people, IVC is leading the way in bringing new standards to animal care and staff wellbeing in the sector globally.

IVC was acquired by EQT Private Equity in December 2016, through its EQT VII fund, and in May 2017 the Company merged with Evidensia, a Swedish veterinary group acquired by EQT Private Equity in 2014. Since then, IVC Evidensia has transformed into the leading European veterinary services provider through accelerated organic growth and a large number of strategic add-on acquisitions. EQT has supported IVC through hiring a new leadership team around CEO, Steve Clarke, and Chairperson, Kate Swann, and revenue has more than tripled since the merger.

As part of its long-term commitment to IVC, EQT Private Equity is making a substantial investment through its EQT IX fund, and with the transaction EQT VII is partially exiting its stake but will remain invested in the Company. As its largest shareholder, EQT Private Equity’s new investment is a validation of the successful partnership and continued potential for substantial growth in IVC.

Silver Lake, a leading global technology investment firm, is making a new substantial minority investment in IVC to help further unlock growth from digital and technology opportunities. Silver Lake has strong expertise and relationships in technology and plans to support IVC as it digitalises its business and develops cutting edge digital products and solutions.

Nestlé, which joined EQT Private Equity in 2019 as a minority investor and strategic partner, is also increasing its minority stake in IVC as part of this transaction. IVC will continue to operate as an independent business and this partnership will allow the Company to leverage Nestlé Purina PetCare’s leading expertise in pet health, pet nutrition and scientific innovation, while Nestlé Purina PetCare EMENA benefits from unique insights into veterinary care which help to improve and deliver advanced pet food solutions and first-class pet care services.

Steve Clarke, CEO of IVC Evidensia, said: “This expanded partnership underscores and reflects our vision for what great veterinary care can be.  We are very pleased about the strong renewed commitment from our largest shareholder EQT Private Equity, who has built this company and set the foundation for its sustained growth, and Nestlé Purina PetCare EMENA, with whom we have a powerful partnership combining unique insights across pet nutrition and veterinary care. We believe that we can accelerate our growth through various digital opportunities and are excited to welcome Silver Lake to the shareholder group, who together with EQT, will support us with expanding our digital products and solutions. The totality of this new partnership is exciting and we look forward to together building a digital ecosystem around IVC.”

Per Franzén, Partner and Investment Advisor to EQT Private Equity, said: “We have seen tremendous growth over the past several years and the additional investments will help to fuel IVC’s continued innovation in veterinary care and cement its leadership position in Europe. EQT Private Equity is delighted to both welcome Silver Lake as an investor and continue with the strong support from IVC’s existing partner, Nestlé Purina PetCare EMENA.”

Simon Patterson, Managing Director of Silver Lake and Co-Head of EMEA, said: “IVC is a strong, well-managed business investing effectively in digital technology to create better outcomes for customers and clinicians. We are excited to partner with the existing investors and the highly talented management team to help the company accelerate the implementation of its digital strategy and build a world-class direct-to-consumer platform for pet care.”

The transaction is subject to regulatory approval. It is expected to close in Q2 2021 at the latest. Goldman Sachs and Jefferies acted as financial advisors to the sellside. J.P. Morgan and Numis acted as financial advisors to Silver Lake.

With this transaction, EQT IX is expected to be 35-40 percent invested (including closed and/or signed investments, announced public offers, if applicable, and less any expected syndication) based on its target fund size, and subject to customary regulatory approvals.

Contacts

For IVC Evidensia:
Fiona Micallef-Eynaud, Brunswick Group, IVCEvidensia@brunswickgroup.com, + 44 207 404 5959

For EQT:
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

For Silver Lake:
Jess Gill, Edelman Smithfield, jess.gill@edelmansmithfield.com, +44 (0)7980 684 247

For Nestlé:
Christoph Meier, mediarelations@nestle.com, +41 21 924 2200

About IVC
IVC is the largest and most diversified vet services platform in Europe with more than 1,500 clinics and hospitals across 12 countries. IVC employs approximately 22,000 people, including over 6000 veterinarians.

More info: www.ivc.group

About EQT
EQT is a purpose-driven global investment organization with more than EUR 84 billion in raised capital and over EUR 52 billion in assets under management across 17 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and North America with total sales of more than EUR 27 billion and approximately 159,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
Follow EQT on LinkedIn, Twitter, YouTube and Instagram

About Silver Lake
Silver Lake is a global technology investment firm, with approximately $75 billion in combined assets under management and committed capital and a team of professionals based in North America, Europe and Asia. Silver Lake’s portfolio of investments collectively generates more than $180 billion of revenue annually and employs more than 400,000 people globally. For more information about Silver Lake and its portfolio, please visit www.silverlake.com.

About Nestlé Purina PetCare EMENA
Nestlé Purina PetCare EMENA (Europe, Middle East, and North Africa) believes that pets and people are better together and is committed to helping pets live longer, happier and healthier lives through proper nutrition and care. For over 120 years, Purina has been one of the pioneers in providing nutritious and palatable products made to the highest standards of quality and safety. Purina’s passion for pets goes beyond the advancement of pet nutrition, and in 2016, Purina PetCare Europe launched the 10 Purina in Society commitments to have a positive impact on pets and society, including promoting pet adoption, pets in the workplace and helping to reduce the risk of pet obesity. The Purina portfolio includes many of the best-known and best-loved pet foods including Purina FELIX®, Purina FRISKIES®, Purina BENEFUL®, Purina BEYOND®, Purina FIDO®, Purina ONE®, Purina GOURMET®, Purina PRO PLAN® and Purina BAKERS®.  

A premiere global manufacturer of pet products, Nestlé Purina PetCare is part of Swiss-based Nestlé S.A., a global leader in nutrition, health and wellness. 

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Bain Capital Private Equity and Cinven enter into definitive agreements to acquire Lonza Specialty Ingredients

Cinven

Today, Bain Capital Private Equity (“Bain Capital”) and Cinven (together “the consortium”) have entered into definitive agreements to acquire Lonza Specialty Ingredients (“LSI”), a division of Lonza AG, for a total enterprise value of CHF 4.2 billion.

LSI is a world-leading provider of specialty chemicals for microbial control solutions, used to eliminate or control harmful and unwanted micro-organisms. LSI’s products are critical ingredients in disinfectants, preservatives, sanitisers, personal care products, as well as coatings and other industrial uses. The business also produces a range of other specialty chemicals, centred around its unique production facility in Switzerland.

Headquartered in Basel, Switzerland, LSI has approximately 2,800 employees, 11 R&D centres and 17 manufacturing sites across the world. The business serves circa 5,300 customers across a wide range of end-markets.

LSI is a strong company, which presents an attractive investment opportunity for a number of reasons:

  • LSI provides a range of differentiated specialty chemical products, underpinned by strong R&D capabilities, regulatory and IP protections, and a highly qualified and dedicated workforce;
  • The microbial control solutions market benefits from structural growth due to favourable penetration trends, supportive regulatory dynamics, and the growing need to protect society from harmful micro-organisms;
  • The business serves a diversified set of attractive end-markets, with a particularly strong presence in the Professional Hygiene and Home & Personal Care segments;
  • The business enjoys leading positions in North America and Europe, with longstanding customer relationships and extensive regulatory expertise.

The strategy of the consortium is to:

  • Enhance the R&D capabilities of LSI to continue to develop innovative chemistries to control the spread of microbes (such as viruses and bacteria) in a sustainable and responsible manner;
  • Build deeper customer relationships through customised application development in a complex regulatory environment, and to provide an even greater range of microbial control formulations;
  • Consolidate the microbial control solutions market through buy-and-build opportunities in the sector, which remains fragmented;
  • Invest further in the world-class production facility in Visp, Switzerland, to enhance its unique technical capabilities and high quality specialty chemicals portfolio.

Pontus Pettersson, Partner at Cinven, commented:

“Cinven and Bain Capital are delighted to invest in LSI, as a global leader in a specialty chemicals category that serves a critical need for society, across a broad range of end-markets.”

“LSI enjoys a strong market position globally, underpinned by deep customer relationships, a continuous track record of innovation and product development, and extensive regulatory capabilities.”

David Danon, Managing Director at Bain Capital added:

“LSI has multiple attractive growth opportunities as the leading global player in the growing market for microbial control. Our strategy is to reinforce the company’s market position, to accelerate growth through further investment in R&D and innovation, and to use LSI as a platform for further industry consolidation, in line with Bain Capital’s and Cinven’s strategies in other sectors.”

The consortium is committed to growing businesses responsibly, and recognises the importance of the environmental, regulatory and stakeholder responsibilities of LSI. Both Bain Capital and Cinven have a strong track record of growing industrial companies in Europe and North America, as well as successfully carving out businesses in an efficient, seamless manner for all stakeholders. The consortium intends to collaborate closely with Lonza AG going forward (notably at the Visp site), as well as with employee representative bodies in Switzerland and across the group, and to become the employer of choice in this sector.

The transaction is expected to close in H2 2021, subject to customary closing conditions.

Advisors to the consortium include: Kirkland & Ellis, Freshfields, Lenz & Staehelin (legal); Ernst & Young (financial, tax); Boston Consulting Group (commercial); Alvarez & Marsal (operations); ERM (environment, regulation); Nexant (technical); The Valence Group of Piper Sandler, Opus Corporate Finance, Trumont (M&A).

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STERIS Announces Sale of Pharmaceutical Testing Laboratories to CCR Group

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Fields Group

STERIS is pleased to announce it has agreed to sell the pharmaceutical testing services business of Synergy Health Utrecht B.V., a STERIS Company, to CCR Group, an integrated contract research organization, part of FIELDS Group.

The transaction includes the chemical testing laboratory in Utrecht and the microbiological testing for pharmaceuticals in Ede the Netherlands. STERIS will continue to operate the laboratory in Ede with a focus on medical device testing. The acquisition is completed by FIELDS’ contract research organization (CRO) platform, CCR Group. As part of the agreement, CCR Group will carve-out the company from STERIS and move the laboratories to a new state-of-the-art laboratory facility in the Netherlands.

“I am pleased we found a very good new owner for the business in CCR Group, which was of paramount importance to STERIS. I am looking forward to growing our relationship going forward,” said Mark Botting, STERIS Director of Global Laboratories.

“With the acquisition of Synergy Health Utrecht B.V., the CCR Group strategically expands its portfolio into the field of chemical and microbiological analytics. As part of our growth plan, we expect to acquire more CROs in adjacent areas in the near future,” said Matthias Stuckmann, responsible manager for CCR Group.

About STERIS

STERIS’s MISSION IS TO HELP OUR CUSTOMERS CREATE A HEALTHIER AND SAFER WORLD by providing innovative healthcare and life science product and service solutions around the globe. For more information, visit www.steris-ast.com

About CCR Group

CCR Group is a European CRO with laboratory sites in Germany and the Netherlands offering a comprehensive set of integrated services to predominantly the pharmaceutical and biotech industries. Through its subsidiary ICCR-Roßdorf (www.iccr-rossdorf.de), the group currently offers expertise into preclinical safety testing with focus on cell and molecular science assays according to GLP, GMP and DIN EN ISO 17025.

About FIELDS Group

FIELDS Group is an entrepreneurial and hands-on investor with offices in Amsterdam and Munich. With its in-house operational taskforce, FIELDS Group is directly involved with the development of the group companies. It has a strong track record in successfully carving-out companies from large (listed) corporations.

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Global supply chain management provider secures Equistone investment

Equistone

Equistone Partners Europe Limited (“Equistone”), the European mid-market private equity investor, today announces its investment in global supply chain management provider Ligentia. The financial terms of the investment are undisclosed.

Founded in 1996 by group CEO Nick Jones, Ligentia has a team of 400+ professionals across 25 locations worldwide. The firm manages the international freight and supply chains for some of the world’s leading retailers, consumer brands and healthcare providers.

Ligentia recorded revenues of c. £300m in 2020, representing strong year-on-year growth which is expected to continue.

The investment from Equistone, with its pan-European network of offices, will support Ligentia in delivering its ambitious growth plans through strategic acquisitions. It will also support the enhanced development of Ligentix; Ligentia’s proprietary customer technology platform.

Ligentia will continue to be led by its founder and CEO Nick Jones, who alongside the existing management will also invest in the business.

Nick Jones, Founder and CEO of Ligentia, said:

“Ligentia has always had an exceptional ability to adapt according to customer and market requirements and we work hard to ensure that customers drive our strategy and ways of working. Over the past 12 months we have adapted again, as our customers and colleagues around the world have endured some of the most challenging times. Our significant investment in our technology platform means we have been able to not only maintain our service to customers, but deliver some substantial change in the way we work. That investment has positioned Ligentia at the forefront of change in our sector.”

“Our new partnership with Equistone will allow increased investment in our business at a time where there is a considerable awareness of global supply chains and the risks that organisations face without the right visibility systems and partners.”

“Equistone has an exceptional track record of supporting fast-growth global companies like ours, as well as a deep understanding of the market. We are really excited about this next part of our journey with a valuable partner on board.”

Sebastien Leusch, Investment Director at Equistone Partners Europe, said:

“Ligentia has 25 years of experience in global supply chain management with some of the world’s most admired brands. Thanks to its strong management team, the business is known for its particularly high customer service levels, underpinned by a stand-out technology platform. This unique combination, at a time where the importance of seamless global supply chain management is particularly heightened, makes this investment a particularly exciting one.

We are therefore delighted to have this opportunity to invest and we look forward to working alongside Nick and the wider team on Ligentia’s next phase of growth and product development.”

Sebastien Leusch, Chris Candfield and Steve O’Hare led the investment on behalf of Equistone. Equistone was advised by DC Advisory, Addleshaw Goddard and PwC.

Ligentia was advised by Rothschild, Squire Patton Boggs, KPMG, Roland Berger and Crosslake.

Santander is providing revolving credit facilities to Ligentia as part of the transaction.

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Advent International to acquire controlling stake in ZCL Chemicals Limited

Advent International
  • Investment will further strengthen Advent’s presence in the pharmaceuticals and API sub-sector.
  • Transaction is Advent’s fourth investment in India over the past twelve months.

MUMBAI, INDIA, February 08, 2021 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced that it has signed a definitive agreement to acquire a majority stake in ZCL Chemicals Limited (“ZCL”), one the fastest growing pharmaceutical companies in India. The business was formerly known as Zandu Chemicals Ltd.

With this transaction, Morgan Stanley Private Equity Asia (MSPEA), a private equity platform that previously managed a minority investment in ZCL, will exit their investment.

ZCL is one of the fastest growing manufacturers of specialty active pharmaceutical ingredients (APIs) and advanced intermediates. ZCL’s highly specialised approach focuses on niche therapeutic areas, underpinned by complex chemistry, supported by a state-of-the-art U.S. Food and Drug Administration (FDA) approved facility, along with strong research & development capabilities. The company has delivered impressive growth over the past few years, has leading market positions in its existing products, and is developing a strong pipeline of high potential products that is expected to drive the next phase of its growth.

“ZCL will be our third pharmaceuticals investment in India and the second in the API space. ZCL is a high-growth business, led by a capable management team, which will further fortify our presence in the API market, a key sub-sector focus of ours,” said Shweta Jalan, a Managing Director and Head of India at Advent International, India.

Over the last 12 months, Advent has committed over $1.2 billion globally across the healthcare sector. The firm has also committed over $600 million in four Indian businesses over the same period in varied sectors such as healthcare, consumer, and financial services amongst others.

“We are impressed with ZCL’s differentiated product portfolio, strong pipeline and its high focus on quality and compliance. The acquisition of ZCL helps us get closer to our goal of creating a top five merchant API platform in India,” said Pankaj Patwari, Director, Advent International India.

“We are very pleased with this transaction and excited to partner with Advent. In the last 12 years we have established ZCL as one of the leading pure-play API companies in the country, and today marks an important milestone in these efforts. We are very excited for the future of ZCL, and strongly believe Advent’s global expertise in the pharmaceutical space, combined with ZCL’s strong capabilities in manufacturing and R&D and a culture of customer centricity, will ensure that we keep up our tradition of delivering immense customer value,” said Nihar Parikh, Executive Director of ZCL Chemicals Ltd.

“ZCL was one of MSPEA’s first investments in the Healthcare and Life Sciences sector in India, and we are happy with the progress the company has made in the last 4 years. Today, it is well positioned to embark on the next phase of growth, with a strong product portfolio and focus on quality standards”, said Nirav Mehta, Managing Director and Co-Head of Morgan Stanley Private Equity India.

Advent has been investing in India since 2007. In this time, it has deployed over $1.7 billion in 12 companies with headquarters or operations in the country. In addition to ZCL, new investments in last 12 months include RA Chem Ltd, a vertically integrated pharmaceutical company; Bharat Serums and Vaccines (BSV), a biopharmaceutical leader in women’s health and critical care; and Aditya Birla Capital, the holding company of the financial services businesses of Aditya Birla Group (ABG), an Indian multinational conglomerate.

Advent has significant experience in the healthcare industry globally. In the past 30 years, the firm has invested or committed over $9.6 billion in 48 companies in the sector, including over 20 businesses involved in pharmaceutical R&D, production, and distribution. Recent pharmaceutical transactions include RA Chem Ltd, Bharat Serums and Vaccines, Sundia, Zentiva’s acquisition of Alvogen’s Central and Eastern European generics business, BioDuro, Industria Chimica Emiliana, Somar, Syneos Health and Zentiva.

The transaction will be subject to customary closing conditions.

ZCL Chemicals was advised by Jefferies (Sole Financial Advisor), Bombay Law Chambers (Legal Counsel) and Deloitte (Finance and Tax).

About Advent International

Founded in 1984, Advent International is one of the largest and most experienced global private equity investors. The firm has invested in over 350 private equity transactions in 41 countries, and as of September 30, 2020, had $66.2 billion in assets under management. With 15 offices in 12 countries, Advent has established a globally integrated team of over 200 investment professionals across North America, Europe, Latin America and Asia. The firm focuses on investments in five core sectors, including business and financial services; health care; industrial; retail, consumer and leisure; and technology. After 35 years dedicated to international investing, Advent remains committed to partnering with management teams to deliver sustained revenue and earnings growth for its portfolio companies.

For more information, visit:

Website: www.adventinternational.com
LinkedIn: www.linkedin.com/company/advent-international

About ZCL Chemicals Limited

ZCL (formerly Zandu Chemicals Ltd.) is one of the fastest growing Pharmaceutical companies in India. Established in 1991, ZCL is headquartered in Mumbai and has a state-of-the-art US FDA successfully inspected facility with a capacity of 214 KL along with strong research & development capabilities strategically located in the industrial park of Ankleshwar, Gujarat.

For more information, visit:
www.zclchemicals.com

Media contacts

Advent International

India:
Girish Dikey
Ketchum Sampark
Tel: +91 98922 00260
girish.dikey@ketchumsampark.com

USA:
Andrew Johnson or Anna Epstein
Finsbury
Tel: +1 646 805 2000
Adventinternational-US@finsbury.com

UK:
Graeme Wilson or Harry Cameron
Tulchan
Tel: +44 (0)20 7353 4200
Advent@tulchangroup.com

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Ratos establishes new financial targets related to its strategy to develop a long-term business group

Ratos

 

  • EBITA is to amount to at least SEK 3 billion by 2025.
  • Net debt in relation to EBITDA should normally range from 1.5 to 2.5x.
  • The dividend payout ratio should amount to 30–50% of profit after tax attributable to owners of the parent, excluding capital gains and losses.

The Board of Ratos AB (“Ratos”) decided on these new financial targets based on the previously announced decision to steer the direction of operations towards becoming a business group with a long-term perspective. Ratos currently has an “eternal” ownership horizon and invests to build value over the long term.

“After reviewing the investment strategy implemented by Ratos’s management and Board in 2018, our focus was initially on increasing stability and profitability in the companies owned. This work resulted in EBITA in 2020 more than doubling compared with 2018. This means that Ratos and its companies are ready to take the next step, with a focus on profitable growth, both organically and through acquisitions,” says Per-Olof Söderberg, Chairman of Ratos.

“We are well positioned to accelerate the pace of execution of our business plan, with the aim of investing in organic growth and margin growth in the existing business group as well as add-on acquisitions and potential new acquisitions. We have taken several steps in the transformation of Ratos and are now a business group focused on profitable growth. At the same time, a great deal of work remains to reach our targets,” says Jonas Wiström, President and CEO of Ratos.

FINANCIAL TARGETS

Ratos decided on the following financial targets:

EBITA growth
Target: EBITA is to amount to at least SEK 3 billion by 2025.

Net leverage
Target: Net debt in relation to EBITDA should normally range from 1.5 to 2.5x, excluding financial leasing liability. The target includes the cash balances of Ratos’s parent company.

Dividend payout ratio
Target: The dividend payout ratio should amount to 30–50% of profit after tax attributable to owners of the parent, excluding capital gains and losses.

The new financial targets replace the previous targets, which were: 1. the earnings of the company portfolio should increase each year; 2. the total return on Ratos shares should, over time, outperform the average on Nasdaq Stockholm; and 3. that the dividend payout ratio should be 30–50% of profit after tax attributable to owners of the parent.

Telephone conference
Jonas Wiström, President and CEO of Ratos, and Jonas Ågrup, CFO, will hold a telephone conference at 9:00 a.m. CET on 8 February to discuss the publication of Ratos’s year-end report and to present the financial targets.

To participate in the teleconference, call UK: +44 333 300 9031, SE: +46 8 505 583 50, US: +1 833 526 83 47 or follow this link https://financialhearings.com/event/13548. The presentation material is also available on Ratos’s website: www.ratos.com.

This is information that Ratos AB is required 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 below, on 8 February 2021 at 7:00 a.m. CET.

For further information, please contact:
Jonas Wiström, President & CEO
+46 8 700 17 00

Helene Gustafsson, Head of IR and Press
+46 8 700 17 98
helene.gustafsson@ratos.com

About Ratos:
Ratos is a business group consisting of 11 companies divided into three business areas: Construction & Services, Consumer & Technology and Industry. In total, the companies have SEK 33 billion in sales and EBITA of SEK 2 billion. Our business concept is to develop mid-sized companies headquartered in the Nordics that are or can become market leaders. We enable independent mid-sized companies to excel by being part of something larger. A focus on people, leadership, culture and values is a key component of 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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Cinven to invest in Drake Software

Cinven

Investment in leading tax preparation software provider

International private equity firm, Cinven, today announces that it has agreed to make a significant investment into Drake Software (‘Drake’ or ‘the company’), a provider of software for tax preparers. Financial details of the transaction are not being disclosed.

Headquartered in Franklin, North Carolina, Drake is a leading provider of professional tax preparation software. It provides the tools and resources that tax professionals need to build their businesses and attract new clients. Drake employs more than 600 people across five offices in North Carolina, Tennessee and Virginia. More than 64,000 tax professionals nationwide use Drake, and each year the company processes more than 33 million federal and state-accepted returns. The business was established in 1977 by founder Phil Drake.

Building on its successful investment in Visma, a provider of Enterprise Resource Planning software and services – including accounting, tax and payroll applications – Cinven’s Technology, Media and Telecom (‘TMT’) Sector team worked closely with its US team to identify Drake as an attractive investment opportunity, given:

  • The resilience and stability of the professional tax preparation market;
  • Drake’s best-in-class reputation with its customers, evidenced by its market-leading customer retention rates and high recurring revenues;
  • Its market leading position, with the opportunity for further organic and acquisitive growth; and
  • The quality and breadth of the company’s software, with recent success in cross-selling new products and opportunities for the introduction of add-on products.

Cinven will be working with the highly experienced Drake management team, with Jamie Stiles continuing in his role as President and Chief Executive Officer of Drake Software.

Chris Good, Partner at Cinven, commented:

“This is a truly outstanding opportunity for Cinven to invest behind a team that has not only built a product that is loved by its customers, but also has a well-established position in a stable market with a wide range of exciting growth prospects.”

“We believe Cinven is well positioned to support the company through its next stage of growth, especially given its track record of investing successfully in technology-focused companies such as Visma and Jaggaer.”

Daniel Garin, Principal at Cinven, said:

“We are delighted to have the chance to work with Jamie and the Drake management team. We plan to invest behind the company’s growth plans to expand Drake’s presence in the market, renew its technology platform, and enhance its product offerings for the benefit of Drake’s employees and customers.”

Cinven’s investment in Drake builds on its successful track record in TMT, following its realisations of: Visma, a leading business solutions provider, in May 2019; Ufinet Group, a provider of fibre infrastructure and transmission services to telecom operators, in July 2018; and HEG, a provider of hosting and domain services, in April 2017.

Alongside these realisations, Cinven has continued to actively invest in the sector, most recently acquiring: MasMovil, a Spanish telecommunications operator; Jaggaer, a global provider of procurement software for large and medium-sized enterprises; RTB House, a global digital advertising technology provider; and One.com, a leading European web hosting provider.

The transaction is subject to customary anti-trust approvals.

Ropes & Gray LLP provided legal advice to Cinven on the transaction.

Chambliss, Bahner & Stophel, P.C. provided legal advice to Drake Software.

Deloitte Corporate Finance LLC acted as financial advisor to Drake Software.

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Andera Partners enters exclusivity agreement with IK Investment Partners to sell its majority stake in Skill & You

ik-investment-partners

The investment, conducted by IK Investment Partners alongside the management team led by Eric Petco and Sonia Levy-Odier, will open a new development cycle in line with the strong ambitions of the Group.

Paris, 4 February, 2021 – Andera Partners today announces that it has formed an exclusive agreement with IK Investment Partners to sell its majority stake in Skill & You to the IK IX Fund. Having generated nearly €115m of sales in 2020, Skill & You is a vocational e-learning provider with 120,000 students and 850 employees and has established itself as a market leader in France and Spain. The Group’s unrivalled portfolio of 220 courses largely lead to state diplomas and cover a wide range of professional fields (healthcare, childcare, animal health, IT & digital, accounting and administration, public service, and construction, among others). As a member of the EdTech France association, Skill & You also plays a major role in fostering the development of e-learning in France.

Since the original investment led by Andera MidCap in July 2018, Eric Petco and Sonia Levy-Odier have successfully carried out the change of scale of the Group, with sales growth reaching almost +25% per annum. Skill & You has continuously expanded its portfolio across new verticals (including accounting & management, naturopathy, bakery and fashion) and has consistently invested in the improvement of both pedagogical tools and academic support. An e-learning partnership has also been signed with French institutions to train jobseekers looking for further qualifications or a career change. The Group has also begun its international expansion by acquiring the Spanish market leader Ilerna Online in 2018, which has since experienced very strong growth.

As a new chapter unfolds for the Group, management intends to accelerate its development with the support of IK Investment Partners, in particular through:
– Strengthening its leadership position in a fast-growing market benefiting from promising trends, by continuing to invest in the Group’s training offering and its digital platform;
– Reinforcing Skill & You’s presence in B2G (public sector) and B2B; and
– Accelerating the development of the Group internationally by leveraging its strong expertise in France and Spain.

The transaction is expected to close in March 2021.

Eric Petco and Sonia Levy-Odier, Managers of Skill & You said: “Over the last three years, Skill & You has considerably overachieved its business plan objectives by taking advantage of the sound dynamics of the e-learning market while investing in its pedagogical content, its international development and by signing strategic partnerships, especially with French Institutions. We are delighted with the change of scale that has been achieved with the support of the Andera MidCap teams. We also look forward to starting a new collaboration with IK Investment Partners, which we believe is the ideal partner to further accelerate our development in France and Europe.”

Laurent Tourtois and Sylvain Charignon, Partners of Andera Partners, added: “We are very proud to have been able to support Eric and Sonia in the change of scale of the Group. Skill & You has benefited from the growing digitalisation of vocational training while managing to combine the diversification of its training portfolio with external growth and international development to rise as the European leader in this fast-growing market.Congratulations! We are grateful to all of Skill and You’s teams, who have been entirely committed to this project all along!” 

Rémi Buttiaux, Managing Partner at IK Investment Partners and advisor to the IK IX Fund said: “Skill & You has experienced impressive growth over the recent years due to the quality and the breadth of its offering and has built a clear leadership position in France and Spain. We are delighted to have the opportunity to support Skill & You and its management team in their ambitious growth strategy.”

For further questions, please contact:

IK Investment Partners

Maitland/AMO
James McFarlane
Phone: +44 (0) 7584 142 665
jmcfarlane@maitland.co.uk

Andera Partners

Nicolas Delsert
Communication & PR
+33 1 85 73 52 88
n.delsert@anderapartners.com

Marie-Charlotte Potet
Bien Commun Advisory
+33 6 47 97 39 46
mc.potet@bcadvisory.fr

About IK Investment Partners

IK Investment Partners (“IK”) is a Pan-European private equity firm focused on investments in the Benelux, DACH, France, Nordics and the UK. Since 1989, IK has raised more than €13 billion of capital and invested in over 140 European companies. IK supports companies with strong underlying potential, partnering with management teams and investors to create robust, well-positioned businesses with excellent long-term prospects. For more information, visit www.ikinvest.com

About Andera Partners

Created in 2001, Andera Partners (formerly Edmond de Rothschild Investment Partners) is a major player in private company investments in France and internationally. Its teams manage nearly €2.5 billion in investments in life sciences (Andera Life Sciences), growth and buyout capital (Andera MidCap, Andera Expansion and Andera Croissance) and sponsorless transactions (Andera Acto).

Andera Partners’ mission is to work alongside companies and their managers to support them in achieving strong and sustainable growth. The quality of performance offered to our investors relies on a strong partnership between the entrepreneurs in our portfolio companies and our teams, based on shared values. Performance through collective engagement, the “Power of And”, constitutes Andera Partners’ DNA.

Based in Paris, Andera Partners is wholly owned by its teams, which count 74 professionals, of which nearly 50 investment professionals. It is structured as a partnership and managed by a board of 10 partners. Responsible and committed, the management company regularly forms partnerships with non-profit sector entities and takes concrete action in the fight against global warming. Andera Partners has been certified carbon neutral since 2018.

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New Harbor Capital Portfolio Company Quigley Eye Specialists Partners with Beraja Medical Institute

New Harbour

New Harbor Capital announced today that its portfolio company Quigley Eye Specialists has partnered with Beraja Medical Institute and Douglas Surgery Center (collectively “BMI”), a South Florida leader in the diagnosis and treatment of vision disorders. Led by Dr. Roberto Beraja and Dr. Victor Beraja, Beraja Medical Institute has been providing care to Miami-Dade County for over 30 years and now joins 19 other locations under Quigley Eye Specialists ownership in Florida. This partnership will establish Quigley Eye Specialists’ presence in Miami-Dade County.

“Partnering with BMI is an excellent opportunity for expansion into Southeast Florida,” said Dr. Thomas Quigley, Founder of Quigley Eye Specialists. “Miami-Dade is a vibrant market with impressive growth. For more than 30 years, Dr. Roberto Beraja and Dr. Victor Beraja have been taking great care of patients in Coral Gables and are respected surgeons with exemplary reputations. We look forward to our partnership and are excited about the future growth of the practice.”

The partnership will ensure patients throughout Florida will have convenient access to industry-leading specialists, innovative treatments, and state-of-the-art equipment. Together, Quigley Eye Specialists and BMI have 36 optometric physicians and ophthalmic surgeons with three surgery centers in Southwest and Southeast Florida.

Founded in 1988, Quigley Eye Specialists is one of the nation’s leading multispecialty ophthalmology practices and consists of more than 100 medical professionals, including surgeons, optometrists, retina specialists, and technicians.

BMI represents the sixth follow-on investment for Quigley Eye Specialists since New Harbor completed an equity investment in January 2020, further extending Quigley Eye Specialists’ tenured market leadership position in the Florida market.

About Quigley Eye Specialists

Technology leaders in eye care, Quigley Eye Specialists is one of the nation’s leading multispecialty ophthalmology practices specializing in cataracts, laser cataract surgery, glaucoma, iLASIK, dry eye, eyelid surgery, retinal issues, corneal conditions, routine eye care, and facial plastic surgery. As the number one choice for cataract treatment in Southwest Florida, Quigley Eye Specialists is committed to providing the highest level of quality eye care and service to the community. For more information or a full list of locations, visit www.QuigleyEye.com.

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