Category Archives: News

Endev receives EUR 4.3 million in financing for scaling up wastewater sludge solution

Tesi

Investments in companies, Impact – 28.11.2019

Endev, a Finnish company extracting energy and nutrients from wastewater sludge, has raised EUR 4.3 million and is scaling up its technology to full industrial production. State-owned Tesi will co-invest in the company along with Sinituote Ltd, Tejusa Ltd, Loipposet Ltd, Henri Juva, Aivi Invest Ltd and a number of private investors. Endev’s solutions are based on a circulating mass dryer and reactor combination patented in 19 countries. Energy is produced from the incineration of wastewater treatment sludge while harmful components are removed from circulation. After many years of successful testing in test plants, the company’s technology is currently undergoing joint trials with Napapiiri Energy and Water Ltd (Neve) in an industrial-scale plant in Rovaniemi, in Finnish Lapland.

Only incineration eliminates the harmful substances in sludge

“Incinerating the sludge prevents recirculation of harmful substances and nutrients. The valuable phosphorus contained in wastewater sludge is extracted from the burn as clean ash that can then be utilised as an ingredient of agricultural fertilisers without the risk of drug residuals re-entering circulation,” explains Endev’s CFO Arttu Laasonen. He is pleased with the progress made in testing the industrial-scale plant commissioned last summer.

Sludge incineration is fairly widespread in Europe and elsewhere in the world. Most of the sludge from wastewater plants in Finland, however, is treated by rotting or composting, and then used in agriculture or landscaping. Decomposed or composted sludge can contain harmful substances such as drug residuals and microplastics, as well as bacteria or viruses that are harmful to health. These are problematic, especially for food production. Endev’s plant can also treat sludge that has been through a biogas process.

“In terms of energy economy, our process is extremely efficient. It works without support fuel and produces excess heat that can be used in, for instance, district heat production. Our method is suited to sludge from individual wastewater treatment plants because small and medium-sized sludge treatment facilities can be built next to the wastewater plant at a reasonable cost,” says Laasonen.

Growing European market for sludge incineration

“Tesi sees a significant opportunity for international growth in Endev’s environmental technology expertise. The impact investment we made under our Circular Economy programme is aimed not only at stopping the circulation of harmful substances in sludge but also in reducing the emissions produced in transporting sludge. The process is eminently suitable for medium-sized cities, of which there are hundreds in Europe. We want to promote widespread industrial adoption of the technology. Doing so will take time and necessitate risk-taking, as will the pilot plant. But that’s essential to making a worthwhile impact,” says Tesi’s Investment Director Mikael Niemi.

Treating sludge is a global problem: the average person in the western world produces some 0.2 tonnes of sludge a year, and sludge treatment costs are rising. Switzerland has already prohibited all sludge treatment other than incineration after a transition period, and Germany plans to do the same. The Netherlands and Belgium, meanwhile, recommend incineration for treating sludge.

Further information:

Endev, Arttu Laasonen, CFO, tel. +358 50 062 6848, arttu.laasonen@endev.fi

Tesi, Mikael Niemi, Investment Director, tel. +358 50 597 7303, mikael.niemi@tesi.fi

Endev Ltd is a Finnish cleantech company founded in 2011 that offers solutions for the thermal treatment of sludge produced by wastewater and industrial processes. Endev has developed its innovative solution for treating municipal wastewater sludge locally, and in an efficient and cost-effective way. The method recovers the energy and nutrients contained in sludge while simultaneously eliminating harmful components such as drug residuals and microplastics from circulation. Deploying this technology drastically reduces the amount of sludge mass transported away from the site, while the clean ash that remains can be used as agricultural fertilizer. The solution has been chosen by the Finnish Ministry of the Environment as a key project in nutrient recycling. www.endev.fi

Tesi (Finnish Industry Investment Ltd) is a state-owned investment company that wants to raise Finland to the front ranks of renewing economic growth by investing in funds and directly in companies. We invest profitably and responsibly, together with co-investors, to create the world’s new success stories. Our investments under management total 1.2 billion euros. Ambition for ownership and success www.tesi.fi | www.dtg.tesi.fi | @TesiFII

Tesi’s Circular Economy programme will provide financing of altogether MEUR 75 to companies in the circular economy sector. In addition to direct investments, the target is to create venture capital funds investing in Finland’s circular economy.

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DIF Capital Partners and Cinia to build out fiber optic networks in Finland

DIF

DIF Capital Partners (“DIF”), through its DIF Core Infrastructure Fund I (“DIF CIF”) is pleased to announce that it has entered into a joint venture with Cinia Oy (”Cinia”) to build fiber-to-the-home (“FttH”) networks in Finland.

The joint venture (“Adola”) plans to provide over 100,000 FttH connections to public, private and commercial customers with a focus on Finland’s underserved areas and operates under the consumer brand Täyskuitu (please refer to www.tayskuitu.fi for more information). FttH networks are a key element to enable digital development in business and society, and keep up pace with global digitalization developments. The joint venture with Cinia underlines DIF CIF’s key strategic focus to invest in digital infrastructure. The first project is expected to become operational in the first half of 2020.

DIF’s share in Adola amounts to 80.1%. The remaining 19.9% is held by Cinia, a public Finnish telecom infrastructure provider that owns and operates roughly 15,000 km of fiber optic backbone network in Northern Europe, including a high capacity submarine fiber cable to Germany.

“We are pleased to have established a long term co-operation with Cinia for the roll out of fiber in Finland. This is an excellent opportunity for DIF CIF to invest in high quality projects with a strong local partner and to further expand into the fast growing telecom infrastructure sector” comments Willem Jansonius, Head of DIF CIF.

About DIF Capital Partners

DIF is an independent infrastructure fund manager, with €6.0 billion of assets under management across eight closed-end infrastructure funds and several co-investment vehicles. DIF invests in greenfield and brownfield infrastructure assets located primarily in Europe, the Americas and Australasia through two complementary strategies:

  • DIF Infrastructure funds target equity investments in public-private partnerships (PPP/PFI/P3), concessions, utilities and renewable energy projects with long-term contracted or regulated income streams.
  • DIF CIF funds target equity investments in small to mid-sized infrastructure assets in the energy, transportation and telecom sectors with mid-term contracted income streams.

DIF has a team of over 135 professionals, based in nine offices located in Amsterdam (Schiphol), Frankfurt, London, Luxembourg, Madrid, Paris, Santiago, Sydney and Toronto. Please visit www.dif.eu for further information.

Contact:
Allard Ruijs, Partner
Email: a.ruijs@dif.eu

About Cinia

Cinia provides secure high-availability data network and software solutions. Our operations are based on our solid expertise in modern software development, data network technologies and critical operating environments. Our fiber optic network of roughly 15,000 kilometers, including the C-Lion1 submarine cable, enables the fastest data communications solutions to Central Europe and to markets in Asia and Eastern Europe. By combining our services with services of our partners, we can provide reliable and comprehensive solutions that help our customers write their own digital success stories. More information about Cinia: www.cinia.fi/en

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CVC Credit Partners supports the acquisition of Amadys by Equistone

Funding will be used to finance Equistone’s acquisition of Amadys and support the businesses consolidation and internationalisation strategy

CVC Credit Partners is pleased to announce that it is the sole underwriter for the first lien funding in Equistone’s acquisition of Amadys NV (“Amadys”). Equistone will acquire the company from the management and the investment fund Vectis Private Equity. The existing management team, led by CEO Hein Wilderjans, will continue to run the company following the acquisition, which is expected to complete in early 2020.

Amadys is a leading provider of passive network equipment solutions to utility networks, including fixed and mobile telecom networks and water, gas and electricity grids, in Belgium and surrounding countries. The company provides a one-stop-shop solution for a broad range of products and services, ranging from fibre optic cabling and related products, to ducts, closures and covers, often in customised and unique specifications and combinations. Amadys employs more than 100 people across offices in Belgium and the Netherlands.

Hubert van Wolfswinkel, Director at Equistone, said: “Amadys is well-positioned for further growth and to strengthen its presence in Belgium as well as in neighbouring countries. In CVC we are pleased to have gained the support of a lender with knowledge and experience of the sector and the flexibility to fully support the future growth plans of the business.”

Chris Fowler, Managing Director in CVC Credit Partners’ European Private Debt business, added: “Amadys is an attractive business with a bright future. It is a leading player in its market supported by sustainable tailwinds, and enjoys longstanding customer and supplier relationships. We are pleased to be supporting the businesses continued organic growth and plans for consolidation and internationalisation.”

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Cinven to invest in Barentz

Cinven

Cinven, the international private equity firm, today announces that it has reached an agreement to become a shareholder of Barentz (the ’Group’), a global specialty ingredients distributor for the food, pharmaceutical, personal care and animal nutrition markets. Financial terms of the transaction are not disclosed.

Headquartered in the Netherlands, Barentz distributes ingredients and additives for products to small and medium-sized enterprises (‘SMEs’) and large customers globally. The Group sources branded specialty ingredients from leading manufacturers worldwide, and its ingredient experts provide value-added technical support (including pre-mixing, blending, ingredient formulation and ingredient testing) from its state-of-the-art production facilities in Europe, North America and Asia.

Established in 1953, Barentz has operations in more than 60 countries with a strong presence in Europe and Asia, and a growing presence in North America and Latin America. Today, the Group employs circa 1,100 people worldwide, sources ingredients from more than 1,000 suppliers and serves more than 15,000 customers.

Cinven’s Business Services and Benelux teams identified Barentz as an attractive investment opportunity, given its:

  • Strong presence in attractive, structurally growing and resilient markets;
  • Value-added proposition to both a large number of ingredient manufacturers and a highly diversified end-customer base;
  • Significant buy and build opportunity in a highly fragmented market. Barentz has a proven track record of executing and integrating acquisitions;
  • Strong historic financial performance and cash generation;
  • Opportunity to accelerate the growth of the business through investment in the Group’s infrastructure as well as R&D capabilities; and
  • Highly experienced management team, led by CEO Hidde van der Wal.

Ben Osnabrug, Partner at Cinven, commented:

“Barentz has a strong presence in a structurally growing market. The Cinven team knows the specialty distribution sector well; a number of key trends are driving the growth of the food and life sciences ingredients market, including a shift towards natural ingredients, increased demand for customised formulations, and a growing share of manufacturers using distributors to drive market access and to improve efficiencies.

“Cinven’s investment in Barentz resulted from a combination of our detailed sub-sector approach within Business Services and our regional network in the Netherlands, and we are delighted to invest in this primary opportunity. In particular, Barentz has an excellent management team whom we are backing to pursue both organic and acquisition-led growth.”

Hidde van der Wal, Chief Executive of Barentz, said:

“We are delighted to be working with Cinven on the next phase of our growth. The Cinven team has really impressed us with their understanding of our market and their strong track record of growing businesses internationally. 

“In particular, their investment and support for our business strategy will enable us to expand our operations into new geographic markets, including through acquisition, and will ensure we have the right infrastructure to achieve this.”

Completion of the transaction is subject to customary conditions including competition clearances.

1602 Capital Partners acted as M&A advisor for Cinven.

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IK Investment Partners to support Mabtech

ik-investment-partners

IK Investment Partners (“IK”) is pleased to announce that the IK Small Cap II Fund has reached an agreement to acquire Mabtech, a leading specialist in immune monitoring. The founders and management team will continue to be invested. Merieux Equity Partners (“MxEP”) will acquire a minority stake alongside the Fund. Financial terms of the transaction are not disclosed.

Founded in Sweden in 1986, Mabtech has gained worldwide recognition for its high quality monoclonal antibodies and technical innovation capabilities and is viewed as a pioneer within the growing detection platform techniques of ELISpot and FluoroSpot. To complement its offering, the Company successfully entered the instruments market by launching its first reader, IRIS, in December 2018. Mabtech’s products are used by researchers and companies worldwide to study immune responses in e.g. cancer, allergy, infectious diseases as well as to monitor vaccine trials.

“Mabtech has become a well-reputable brand worldwide due to their high quality, innovation and excellent customer service, supporting their customers to obtain optimised test results with limited variability. The deal team has followed the company for several years and we understood this was a unique opportunity to acquire a global leader in a niche market and we are delighted to be the founders’ preferred partner for Niklas and his experienced team,” said Erik Ingemarsson, Partner at IK Investment Partners and advisor to the IK Small Cap II Fund.

“We describe Mabtech as a company ‘founded by researchers for researchers’. Our success is built on long-term relationships with our clients and employees, and as we started planning for our next phase of growth, it was clear that we needed a partner who shares our values and vision. We could not be more happy about this exciting new partnership,” said Niklas Ahlborg, CEO of Mabtech.

Benoit Chastaing, Senior Partner at Merieux Equity Partners added: “We are pleased to partner with IK Investment Partners, founders and Mabtech management team, to invest in a reference player in the immunoassays market. This attractive and growing segment has been a core focus for MxEP and we aim at bringing our expertise and industrial network to accompany Mabtech in its development together with IK.”

The investment in Mabtech builds on IK’s strong track record in healthcare, following its successful sale of Ellab, a leading global supplier of thermal validation solutions, to EQT in September 2019, and its acquisition of LAP Laser, a leading German provider of laser positioning systems, in July 2019.

The transaction represents the 8th investment made by the IK Small Cap II Fund, and the team included Erik Ingemarsson, Kristian Carlsson Kemppinen, Henrik Geijer, Viktor Josefsson and Patrik Stockhaus.

Completion of the transaction is expected during December.

For further questions, please contact:

Mabtech
Niklas Ahlborg, CEO
niklas@mabtech.com

IK Investment Partners
Erik Ingemarsson, Partner
Phone: +46 8 678 95 00

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

About IK Investment Partners
IK Investment Partners (“IK”) is a Pan-European private equity firm focused on investments in the Nordics, DACH region, France, and Benelux. Since 1989, IK has raised more than €10 billion of capital and invested in over 125 European companies. IK funds support companies with strong underlying potential, partnering with management teams and investors to create robust, well-positioned businesses with excellent long-term prospects. For more information, visit www.ikinvest.com

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Cybersecurity firm buguroo raises $11M to build on its success in Europe and Latin America

Teneleven

  • The new funding will be used to accelerate development of buguroo’s Deep Learning based online fraud detection and prevention products for new markets worldwide
  • Three new investors will join the buguroo board: Alex Doll and Paul Ayers from Ten Eleven Ventures and Beatriz Gonzalez from Seaya Ventures

26 November 2019 – Madrid-based cybersecurity firm buguroo has secured $11 million in Series A funding to bring its Deep Learning based online fraud detection and prevention technology, combining behavioral biometrics, malware detection and device assessment, to more financial services customers.

Cybersecurity-focused venture capital firm Ten Eleven Ventures (headquartered in Silicon Valley, California) and Spain- and Latin America- focused venture capital firm Seaya Ventures (headquartered in Madrid, Spain) led the Series A round. Existing investors Inveready Technology Investment Group and Conexo Ventures also participated.

buguroo-serie-a-investment-01

Currently, buguroo technology protects over 50 million financial services customers in Europe and Latin America from login to logout. With the new Series A investment, the company will expand its sales and marketing efforts in these regions as well as in new geographies, with particular focus on the US, UK, France and Germany.

The funding will also be used to accelerate new product developments, including buguroo’s “Fraudster Hunter.” This pioneering functionality, which was recently incorporated into buguroo’s anti-fraud solution, identifies and tracks the behavioral patterns of fraudsters and their collaborators, using Deep Learning to discover victims who are unaware they have been affected by fraud, reveal fraud scenarios and recognize fraudsters’ modus operandi. This unique capability ensures that financial services companies can stay one step ahead of fraudulent digital activity.

From login to logout, buguroo’s technology protects financial services customers from all known fraud use cases, including the increasing problem of synthetic fraud, when hackers set up new accounts using fake identities in the onboarding phase.  By collecting thousands of parameters relating to the customer’s behavioral biometrics and environment, including smartphone and mouse movements, keystrokes, device profiling, and geolocation and malware records, buguroo is able to create a unique “cyber profile” for each user – a digital DNA – that stops fraudsters from impersonating financial services customers online and manipulating accounts.

With online banking fraud proliferating, identifying and stopping fraudulent activity without impacting the user experience is crucial for financial institutions worldwide.

priva-serie-a “With focused, regional investment in sales and marketing, we have proven the power of our solution. We are thrilled to have the support of our new investors, who are enabling us to continue to bring this best-in-class solution to banks around the globe and accelerate our mission of continuous innovation in online fraud detection”

Pablo de la Riva, Founder and CEO of buguroo.
“Ten Eleven Ventures is pleased to back another exciting new team using artificial intelligence to transform cybersecurity. Pablo and the buguroo team are talented innovators who have found a unique way to use AI to reduce online fraud. We are so impressed with the customer traction they have in Europe and Latin America. We look forward to helping them build a global cybersecurity company.”

Alex Doll, Ten Eleven Ventures Managing Partner.

 Alex-Doll-Portrait
aris_xenofontos-serieA “We are very excited to have the opportunity to join Pablo and the team in their journey to help any kind of organization prevent digital fraud and become the world’s largest database of fraudster digital identities. We are looking forward to supporting them using our experience with high-growth international businesses.”

Aris Xenofontos from Seaya Ventures.
“We are so impressed with buguroo’s achievements so far. This great performance allowed us to choose among top VCs, and we decided to go with Ten Eleven Ventures, best in cybersecurity. We look forward to keep helping Pablo and buguroo’s team to build a global cybersecurity company.”

Ignacio Fonts, Inveready Managing Partner.

 ignacio_fonts-seriesA
joaquim_hierro_lopes-serieA “We are very proud of buguroo’s performance, testimony to the skills, passion and relentless dedication by CEO Pablo de la Riva and his team. We are as well delighted to have Ten Eleven Ventures and Seaya joining in this journey; they are the perfect companions to further expand buguroo’s international success.”

Joaquim Hierro Lopes, Conexo’s Managing Partner.

 

logo_buguroo_SA
About buguroo

buguroo was founded in Madrid in 2015 to develop cybersecurity and disruptive anti-fraud solutions, always keeping abreast of the latest market trends. Today, buguroo is the mastermind behind the most comprehensive solution for online fraud prevention known as bugFraud. Thanks to this product, banks across the globe protect their customers in real-time from all the online fraud use cases.
https://www.buguroo.com/

 

TenEleven-logo
About Ten Eleven Ventures

Ten Eleven Ventures is the original venture capital firm focused solely on investing in digital security. The firm invests globally and at all stages, from seed to growth (the latter via its Joint Investment Alliance with KKR). Since its founding in 2015, Ten Eleven Ventures has raised nearly $500M and invested in nineteen leading cybersecurity companies including Twistlock, Verodin, Cylance, KnowBe4, Darktrace, and Ping Identity.
https://www.1011vc.com

 

seaya_ventures_logo
About Seaya Ventures

Based in Madrid, Seaya Ventures has been backing the best entrepreneurs and teams from Spain and Latin America since 2013. Seaya focuses on supporting founders in scaling their businesses enabling them to become global leaders. . https://seayaventures.com/

 

imagotipo-azul
Acerca de Inveready

Inveready is a leading asset manager in Spain investing in early-stage technology-based companies. Inveready invest through 4 verticals Venture Capital in Digital Technology, Venture Capital in Life Sciences, Venture Debt and Hybrid Financing for quoted companies in growth markets) with +€330M of assets under management. With 21 successful exits on their back, some of their portfolio companies are quoted in the IBEX 35, NASDAQ and MAB while others got acquired by companies such as Intel, Symantec and Red Hat. It is part of their DNA to empower disruptive innovators, helping them grow and succeed over the past 11 years. As a consequence of this growth and track record they are proud recipients of several awards such as Best Venture Capital Manager in Spain, Best VC Transaction and Best Venture Debt Transaction.
https://inveready.com/

 

conexo
Acerca de Conexo

is a fund with presence in Madrid, Lisbon, Boston and Silicon Valley that invests in Spanish and Portuguese startups in order to accelerate their growth through internationalization towards LATAM and, particularly, US. We excel at hands-on value creation bringing insight, talent, direct sales and co-investors to our portfolio companies. Conexo is the ventures arm of GED Capital, a leading investment firm with over $900M AUM.
https://conexo.vc/

 

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Partners Group to exit Covage, a leading open-access fiber infrastructure platform in France

Partners Group

Partners Group, the global private markets investment manager, has, on behalf of its clients, entered into exclusive negotiations with a consortium led by Altice, and including Allianz Capital Partners, AXA Investment Managers – Real Assets, acting on behalf of its clients, and OMERS Infrastructure, to sell its 50% stake in Covage (“Covage” or “the Company”). The transaction gives Covage an equity value of EUR 1 billion.

Covage is a leading open-access fiber infrastructure platform with a national footprint across low-, medium-, and high-density areas in France. The Company operates 45 local networks, complemented by a fully-owned national fiber backbone of 9,000 km. Covage’s awarded perimeter includes 2.4 million homes and 21,000 existing connected businesses. Its connections are built and operated under the support of France’s national rural broadband access program, a key social ESG initiative to bridge the digital divide between rural and urban regions.

The sale of Partners Group’s 50% stake in Covage would be the final divestment from Partners Group’s acquisition of Axia NetMedia Corporation, on behalf of its clients, in a public-to-private transaction that resulted in its delisting from the Toronto stock exchange in July 2016. It follows the divestment of the Canadian operations of Axia NetMedia, which were sold to BCE Inc (Bell Canada) in 2018. The sale of Covage is subject to customary regulatory clearances and is expected to take place during the first half of 2020.

Esther Peiner, Managing Director, Private Infrastructure Europe, Partners Group, comments: “We are very proud of our contribution to the strong growth Covage has experienced over our holding period. Consistent with our platform expansion strategy, significant capital investments from the shareholders have enabled Covage to deliver a material increase in high bandwidth connectivity nationwide and establish itself as a leading provider in the French communication infrastructure market. Partners Group, through the Covage board, worked with CEO Pascal Rialland and his team to successfully institutionalize the fiber roll-out and commercialization framework of the Company, thus demonstrating the considerable value that can be added through entrepreneurial governance.”

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CVC Credit Partners supports TSS in the acquisition of Salvia Développement

Funding used to finance the acquisition of Salvia Développement, a leading provider of business software solutions in France

CVC Credit Partners (“CVC Credit”) is pleased to announce that it was the sole underwriter for the First Lien funding in Total Specific Solutions’ (“TSS”) acquisition of Salvia Développement (“Salvia”). This deal comes hot on the heels of CVC Credit hiring Hamza Filali in the Paris office in September 2019.

Founded in 1986 and headquartered in Paris, Salvia is the leading vertical market software provider for social housing, real estate developers, facility managers and local public authorities in France. The company develops comprehensive product offerings to meet the current and future financial, project, CMMS and energy management as well as digitisation demands of more than 1,300 real estate companies and over 2,500 government authorities in both metropolitan and rural areas.

Han Knooren, Group CEO at TSS commented: “We are happy to have completed the acquisition and the subsequent debt funding of Salvia. CVC Credit Partners has joined us as a key partner on the future journey of Salvia, as part of TSS. We are pleased with the speed at which CVC Credit Partners got to grips with the businesses processes and the market dynamics, which allowed us to agree upon a solid long-term financial structure for Salvia with ample room for the business to grow as well as invest in its products and services.”

Neale Broadhead, Head of European Private Debt in CVC Credit Partners’ European Private Debt business, added: “Salvia has been a leader in this niche market for over 30 years and enjoys a diversified and loyal customer base. TSS is a hands-on equity sponsor with significant sector experience and a strong track record. We are delighted to be part of the vision for Salvia’s future growth and look forward to supporting the business and TSS in the years to come.”

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KKR to Acquire Novaria Group from Rosewood Private Investments and Tailwind Advisors

KKR

All Employees to Become Owners in Company

FORT WORTH, Texas–(BUSINESS WIRE)–Nov. 25, 2019–

KKR, a leading global investment firm, today announced it has entered into an agreement to acquire Novaria Group, a leading manufacturer of specialty aerospace hardware, from Rosewood Private Investments and Tailwind Advisors. The transaction, the financial details of which were not disclosed, is being funded through KKR’s Americas XII Fund.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191125005243/en/

Headquartered in Fort Worth, Texas, Novaria Group is a premier independent supplier of complex, highly engineered components and specialty processes for the aerospace and defense industry. Founded in 2011 by CEO Bryan Perkins, Novaria Group aims to improve the aerospace supply chain with an emphasis on better technology, processes and infrastructure. Today, the company serves more than 500 customers.

“Our team has been in search of a differentiated platform in the commercial aerospace sector and are thrilled to have found our partner in Bryan Perkins and his team at Novaria Group,” said Josh Weisenbeck, KKR Member and senior leader on KKR’s Industrials investment team. “We look forward to working together to scale the company and build an aerospace engineered parts supplier that is uniquely focused on excellence in quality and customer service.”

“Since our founding, Novaria Group has always prided itself on being a customer-focused supplier of aerospace parts. Importantly, KKR shares this vision of improving the aerospace supply chain through delivering value to our customers and, through their innovative employee ownership and engagement model, extending the shareholder value we will create through this business strategy to our employees,” said Bryan Perkins, Novaria Group CEO.

Since 2011, KKR’s Industrials team has focused on employee engagement as a key driver in building stronger businesses. The strategy’s cornerstone has been to allow all employees to take part in the benefits of ownership by granting them the opportunity to participate in the equity return alongside KKR. Beyond sharing ownership, KKR also supports employee engagement by investing in training across multiple functional areas and by partnering with the workforce to give back to the community.

“We are extremely excited to support Novaria Group on the next leg of its journey. Similar to what we have done at KKR’s other industrials portfolio companies in the U.S., we plan to implement a broad-based employee ownership and engagement model at Novaria Group to recognize the employees and ultimately position the company to better serve its customers,” said Pete Stavros, KKR Member and Co-Head of Americas Private Equity.

“We’ve enjoyed working with the Novaria management team over the past five years. Since our initial investment in Novaria, we have supported numerous additional acquisitions and substantial organic growth. We are thrilled that Bryan and his team have found a new equity partner to take Novaria to even greater achievement,” said G.T. Barden, Rosewood Private Investments.

This transaction, which is subject to regulatory approvals and other customary closing conditions, is expected to close by 1Q 2020. Fully committed financing has been led by lead arrangers KKR Capital Markets and RBC Capital Markets LLC. KKR was advised in the transaction by Kirkland & Ellis LLP, Deloitte and AeroDynamic Advisory. Novaria Group was advised in the transaction by Lazard, Riveron, and Foley & Lardner LLP.

About Novaria Group
Novaria Group is a cohesive family of precision aerospace & defense component companies, a sum made greater by the value of its parts, that consistently delivers optimum performance and sustainable growth. With deep industry knowledge, demonstrated integrity and an abiding regard for human capital, Novaria Group provides its business units unmatched access to unique innovations and best practices. Investing and strategically operating in defined segments of the precision component sector, Novaria Group deploys its significant leadership experience to improve the operational and business capabilities and capital resources of small to mid-market commercial aerospace manufacturing firms. Since our founding in 2011, we have been building a new kind of precision aerospace & defense components supplier, developing robust business processes and long-standing customer relationships, while making organizational and operational improvements designed to sustain and expand our business.

For more information about Novaria Group, please visit www.novariagroup.com.

About KKR
KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

For more information about KKR’s Industrials team and the employee engagement model, please visit the KKR Industrials page on LinkedIn, @KKR_Industrials on Twitter and KKR Industrials on YouTube.

Source: KKR

Novaria Group:
Marissa Kelly
817-381-3813
media@novariagroup.com

KKR:
Kristi Huller or Cara Major
212-750-8300
media@kkr.com

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Sun Capital Partners Affiliate Makes a Control Investment in National Tree, a Leading E-Commerce Wholesaler of Seasonal and Holiday Décor

Sun Capital

Sun Capital Partners, Inc. (“Sun Capital”), a leading private investment firm focused on investing in market-leading companies, today announced that an affiliate has completed the acquisition of National Tree Company (or “The Company,”) a leading e-commerce wholesaler of seasonal and holiday décor, with a particular focus on the Christmas holiday. Terms of the private transaction were not disclosed.

Founded by Sal Puleo, Sr. in 1990 and headquartered in Cranford, New Jersey, National Tree Company is a family-operated business that has established itself as the clear leader in seasonal and holiday décor. Today the business is led by the original founder’s three sons, Joe, Sal (Jr) and Rich Puleo. The Company offers more than 4,500 SKUs and has strong relationships with many of the most popular online retailers.

“The Puleo family has done a tremendous job with National Tree Company, achieving impressive market share and consistent growth,” said Marc Leder, Co-CEO of Sun Capital. “This is a great opportunity for Sun Capital to work with the Puleo family to invest in the growth of the business. We believe National Tree has the dropship capabilities and customer relationships to expand its product range both organically and through strategic acquisitions.”

National Tree Company is one of the largest domestic wholesalers of artificial Christmas trees. The Company was recently awarded “Best Artificial Christmas Trees of 2019” by Better Homes & Gardens and has won other “Best of” awards from organizations including Wirecutter, House Beautiful, Business Insider, The Today Show, Good Housekeeping, and Bob Vila.

“We were attracted to National Tree Company’s strengths in design, procurement, and dropship fulfillment—a comprehensive capability you don’t often find,” said Matthew Garff, Managing Director at Sun Capital. “National Tree Company’s sourcing and logistics capabilities span the entire products’ value chain, allowing the Company to partner with online retailers and provide customers a wide assortment of product choices quickly and economically.”

For more information:
Emily Meringolo
Stanton
646-502-3599
emeringolo@StantonPRM.com

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