Kinnevik AB (publ) (“Kinnevik”) today announced its pro-rata participation of SEK 150m in Mathem’s SEK 400m primary equity raise. Existing investors AMF and Stena invested SEK 100m and SEK 50m respectively, increasing their ownership in the business. The funding round also includes a debt facility of SEK 700m provided by P Capital Partners AB.

The newly raised capital will be used to fund MatHem’s continued expansion, including the launch of the new fulfilment center in Larsboda next year, and growing the product offering through, among other initiatives, the launch of pharmacy products in cooperation with Kronans Apotek. In 2020, MatHem recorded sales growth of 50 percent year-on-year, with sales amounting to SEK 2.3bn for the full year, consistently growing its share of the online grocery home delivery market.

Georgi Ganev, CEO of Kinnevik commented: ”Kinnevik is proud to support the continued growth of MatHem as it expands its product range and gains market share. I am impressed by how Johan and his team has met the increased interest in having groceries delivered to your doorstep, and I am convinced that MatHem will continue to develop its customer offering and efficiency.”

Johan Lagercrantz, CEO of MatHem commented: “I am incredibly grateful for the trust in MatHem from our investors in this funding round. MatHem has a clear focus on growth and increased efficiency in our continued journey towards profitability. We work hard to constantly develop to meet our customers’ needs and for our e-commerce of groceries with home delivery to contribute to a more convenient and simpler everyday life. With this investment we will be able to achieve fantastic results going forward.”

For further information, visit www.kinnevik.com or contact:

Torun Litzén, Director Investor Relations
Phone +46 (0)70 762 00 50
Email press@kinnevik.com

Kinnevik’s ambition is to be Europe’s leading listed growth investor, and we back the best digital companies to make people’ lives better and deliver significant returns. We understand complex and fast-changing consumer behaviours, and have a strong and expanding portfolio in healthtech, consumer services, foodtech and fintech. As a long-term investor, we strongly believe that investing in sustainable business models and diverse teams will bring the greatest returns for shareholders. We back our companies at every stage of their journey and invest in Europe, with a focus on the Nordics, and in the US. Kinnevik was founded in 1936 by the Stenbeck, Klingspor and von Horn families. Kinnevik’s shares are listed on Nasdaq Stockholm’s list for large cap companies under the ticker codes KINV A and KINV B.

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• Pressrelease

14/04/2021 – 07:30 | Portfolio

Kinnevik AB (publ) (“Kinnevik”) today announced its participation with USD 30m in Cityblock’s recent USD 192m funding round. Cityblock will use the newly raised capital to accelerate deployment of its community and value-based care model nationwide, bringing desperately needed transformation to the most vulnerable and underserved communities across the US.

In just four years since its launch, Cityblock has achieved positive results with its comprehensive care model. Data from Cityblock’s first member cohort show a 15 percent reduction in emergency room visits and a 20 percent reduction in in-patient hospital stays. Cityblock sees around 70 percent member engagement compared to the health plan average of 5-7 percent and receives average NPS scores of over 85, compared to the provider average of 15. While delivering these outcomes, Cityblock is experiencing 3x year-over-year revenue growth.

Georgi Ganev, CEO of Kinnevik commented: “Cityblock addresses a massive need in the US supporting the most vulnerable population groups with a community-based, scalable care model. This is a great example how value-based care can transform the healthcare experience and achieve sustainable change, even for populations which are fundamentally disadvantaged in today’s healthcare system. We are proud to continue to support the founders Toyin Ajayi and Iyah Romm by investing well above pro-rata as they expand the model across the US.”

The USD 192m funding round was an extension of Cityblock’s Series C round. Tiger Global led this latest round, with participation from other existing investors alongside Kinnevik, including Maverick Ventures, General Catalyst, and Wellington Management. The Series C extension brings Cityblock’s total fundraising since its founding in 2017 to about USD 500m.

In Kinnevik’s Year-End Release 2020, Kinnevik’s investment in Cityblock was valued at SEK 841m. Cityblock has continued its strong operational performance during the first months of 2021, and the recent funding round provides strong reference points for the valuation of Cityblock relative to listed comparable businesses. In combination, these factors underpin a value of Kinnevik’s investment that corresponds to a value uplift of SEK 1.0bn or SEK 3.6 per Kinnevik share, excluding the USD 30m in new capital invested in the funding round at hand.

The reassessed fair value of Kinnevik’s investment in Cityblock will be finalized and reported in Kinnevik’s Interim Report for the first quarter, to be published on 22 April 2021.

For further information, visit www.kinnevik.com or contact:

Torun Litzén, Director Investor Relations
Phone +46 (0)70 762 00 50
Email press@kinnevik.com

Kinnevik is an industry focused investment company with an entrepreneurial spirit. Our purpose is to make people’s lives better by providing more and better choice. In partnership with talented founders and management teams we build challenger businesses that use disruptive technology to address material, everyday consumer needs. As active owners, we believe in delivering both shareholder and social value by building long-term sustainable businesses that contribute positively to society. We invest in Europe, with a focus on the Nordics, the US, and selectively in other markets. Kinnevik was founded in 1936 by the Stenbeck, Klingspor and von Horn families. Kinnevik’s shares are listed on Nasdaq Stockholm’s list for large cap companies under the ticker codes KINV A and KINV B.

• EQT Real Estate and Italian construction company Arco Lavori launch joint venture to create a EUR 300m portfolio of state-of-the-art, affordable senior care homes with a focus on Northern Italy

• The joint venture constitutes EQT Real Estate’s first investment in Italy and combines its thematic focus on “beds and sheds” in primary European markets with a social impact strategy underpinned by EQT’s industry-leading sustainability credentials

• The joint venture launches having secured an initial five sites to be developed in Northern Italy and is actively working on a strong pipeline of future opportunities

EQT is pleased to announce that the EQT Real Estate II fund (“EQT Real Estate”) has today launched a joint venture (the “JV”) with AR.CO. Lavori S.C.C. (“Arco Lavori” or “Arco”), a leading Italian construction company with an established track record of delivering high-quality real estate assets in Italy including healthcare facilities. The JV will focus on developing a portfolio of purpose-built, affordable grade-A senior care homes in Northern Italy that will seek to provide the highest level of healthcare and quality living in the country. The JV launches having secured five initial sites with the ability to provide an aggregate of 1,010 beds. The first two senior care homes are expected to be delivered by late 2022 and in the beginning of 2023.

It is intended that the JV will have an initial capacity to establish an investment portfolio with a total value in excess of EUR 300 million. The JV’s five initial projects are located in the Lombardy and Emilia Romagna regions, which are particularly in need of senior care facilities due to the supply-demand imbalance and low provision rate of care home beds for senior citizens driven by Italy’s growing elderly population. Over the next ten years, the population group that is over 75 years of age is expected to increase from 11.5 percent to 14.0 percent¹. Completed facilities will be let to, and managed by, well-known, high quality operators who will aim to bring a high standard of sustainability and safety to the healthcare home market.

Consistent with other EQT Real Estate transactions, the JV’s assets will be developed with strong sustainability credentials. Where possible, care homes will utilize photovoltaic panels on the roof and benefit from measures aimed at incentivizing the promotion of recycling of waste and rainwater management. The JV’s care homes will also seek to achieve green certifications such as LEED and WELL, as well as following specific ESG principles. In addition, the JV will promote sustainable living practices within the care homes themselves. The operators will implement policies and standard activities related to the procedures against Covid-19 and other possible health risks.

Alessio Lucentini, Managing Director, Investment Advisor and Head of Italy, EQT Real Estate, said, “EQT Real Estate is thrilled to be entering the Italian healthcare market and investing in a sector which is lacking grade-A facilities and is expected to benefit from robust demographic trends in the country. In addition to the initial five sites, we are currently evaluating a growing pipeline of projects, mainly in Northern Italy, to build a large scale, resilient and downside-protected portfolio. EQT Real Estate looks forward to partnering with the Arco team to realize our shared vision over the coming years.”

Rob Rackind, Partner, Investment Advisor and Head of EQT Real Estate, said, “This joint venture with Arco marks an exciting entrance into Italy for EQT Real Estate as it represents the first transaction in this market since the business line was established in 2015. This is another prime example of using EQT’s “local-with-locals” approach to source attractive opportunities in order to invest with thematic trends and we are proud to back a strategy that should deliver significant social impact by providing defensive, socially responsible assets to the regions of Italy most in need.”Emiliano Battistini, CEO of Arco Lavori, said, “We look forward to partnering with EQT Real Estate to deliver a high-quality portfolio of purpose-built senior care homes in Italy. There is a growing undersupply of affordable grade-A care home facilities in Italy and this trend is expected to continue during the coming years. The combination of EQT Real Estate’s pan-European expertise and our local reputation and know-how is expected to create a much-needed product for an important and growing part of Italy’s population.”

¹Source: Eurostat

Contacts
UK media enquiries: Greenbrook, eqt@greenbrookpr.com, +44 20 7952 2000
Italian media enquiries: Brunswick Milan, Elisa Lavagna, elavagna@brunswickgroup.com,
+39 346 9447907; Andrea Mormandi, amormandi@brunswickgroup.com, +39 345 889 0885
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

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.

About EQT Real Estate
EQT Real Estate, part of EQT Partners and Investment Advisor to EQT managed real estate funds, seeks direct and indirect controlling interests in value-add real estate assets, portfolios, operating companies and platforms across primary cities in the UK and Europe that offer significant potential for value creation through repositioning, development / redevelopment, refurbishment and active asset management. The EQT Real Estate Advisory Team comprises 24 experienced Investment Advisory Professionals working out of EQT’s offices in London, Madrid, Milan, Paris and Stockholm. The Investment Advisory Team, which has access to the full EQT network including 11 European offices and more than 500 EQT Advisors, has experience analyzing and investing across the pan-European real estate market and has, collectively, advised on over 130 real estate projects in multiple asset classes across Europe.

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

About Arco Lavori
Founded in 1999, Arco Lavori is a cooperative construction company focused on general construction, facility management, energy and healthcare sectors. Arco is headquartered in Ravenna, in the Emilia Romagna region, and has more than 400 partner companies and an order portfolio of approximately EUR 550 million as of March 2021. With a well-established track record in the healthcare sector across Italy, Arco’s principal focus is aimed at improving the economic and social conditions of partner companies while delivering innovative products. Arco has created an unrivalled property platform and an integrated solution to its partners by sourcing sites, bringing together construction resources, and managing all stages throughout the planning and development process. In 2020, Arco Lavori had a turnover of approximately EUR 200 million.

More info: www.arcolavori.com

Funds advised by Apax (the “Apax Funds”) today announced an agreement to acquire Rodenstock Group (“Rodenstock”), a leading manufacturer of premium ophthalmic lenses, from Compass Partners.

Founded in 1877, Rodenstock has been a global leader in prescription lenses for over 140 years, with a strong track record of innovative product development and market leading technologies. Headquartered in Munich, Germany, Rodenstock employs around 4,900 people worldwide and is represented by sales subsidiaries and distribution partners in more than 85 countries. Rodenstock has a strong and growing pipeline of innovation; its patented DNEye Pro technology stands at the core of its business strategy and made Rodenstock the first company to measure the individual shape and size of each eye and use thousands of data points to produce individualised eyeglass lenses, called Biometric Intelligent Glasses (B.I.G. VISION™). The company’s portfolio also includes eyewear under the Rodenstock and Porsche Design brands.

The Apax Funds will support the Rodenstock management team’s vision of accelerating the company’s growth through innovation, commercial execution and digitisation, whilst continuing to deliver the highest level of service to clients and partners. The Apax Healthcare team have a deep understanding of innovative MedTech through prior investments in the space, including companies such as Candela, a pioneering non-surgical aesthetic device company, and Acelity, the global leader in wound-care products.

Anders Hedegaard, CEO of Rodenstock, said: “We are excited to partner with the Apax Funds, who have a proven culture of investing for growth, and who will be able to support Rodenstock’s continued quest to develop and produce the highest quality lenses for our customers. During 2020 we saw tremendous growth driven by our B.I.G. VISION™ technology, which helped us emerge from the Covid-19 crisis stronger than most of our competitors. Our innovative technology enhances the value proposition that can be delivered by our opticians, who in turn are delivering optimal vision to consumers. With the support of Apax we are looking to expand our presence even further by offering our customers more excellent and innovative products.”

Steven Dyson, Partner at Apax and Co-Head of Healthcare, commented: “Rodenstock fits perfectly with the Apax Funds’ healthcare strategy of investing in innovative companies with a differentiated customer proposition and the potential to achieve stand-out growth. Under Anders’ management, Rodenstock’s strategic refocus has already translated into strong performance in 2019 and 2020, despite the Covid-19 pandemic, creating a robust foundation for future success.”

Arthur Brothag, Partner at Apax, added: “Rodenstock has a strong reputation for innovation and German engineering proven over 140 years, and has created a paradigm shift in progressive lenses with B.I.G. VISION™. We look forward to leveraging the Apax Funds’ experience and know-how in MedTech and supporting the entire Rodenstock team on further driving innovation and accelerating transformational growth.”

Tim Wright, Partner at Compass Partners, commented: “In the last 5 years Rodenstock has been transformed into a global leader in ophthalmic lenses. We are delighted that the Apax Funds have agreed to acquire the business. We believe their partnership with Anders Hedegaard and his team will provide a strong platform for future growth which will allow Rodenstock to maximise its full potential.”

The transaction is subject to applicable regulatory approvals and is expected to close in the middle of 2021. Financial terms were not disclosed.

About Rodenstock

The Rodenstock Group is a global leader in high-quality ophthalmic lenses. With the philosophy “B.I.G. VISION™ FOR ALL” the lens manufacturer stands for a paradigm shift in individual progressive lenses. The company, which was founded in 1877 with its headquarters in Munich, Germany, employs around 4,900 people worldwide and is represented with sales offices and distribution partners in more than 85 countries. Rodenstock maintains production plants at 14 locations in 13 countries. For more information, visit www.rodenstock.com/press.

About Apax

Apax Partners LLP (“Apax”) is a leading global private equity advisory firm. For nearly 50 years, Apax has worked to inspire growth and ideas that transform businesses. The firm has raised and advised funds with aggregate commitments of more than $60 billion. The Apax Funds invest in companies across four global sectors of Healthcare, Tech, Services and Internet/Consumer. These funds provide long-term equity financing to build and strengthen world-class companies. For further information about Apax, please visit www.apax.com.

Apax is authorised and regulated by the Financial Conduct Authority in the UK.

Advisors

Apax was advised by Linklaters (legal advisers) and PwC (financial and tax advisers).

Compass was advised by Jefferies (M&A), Dickson Minto and Sidley Austin (legal advisers) and PwC (financial and tax advisers).

Nordic Capital, a leading global healthcare private equity investor, invests in LEO Pharma and becomes an active minority owner and partner to the LEO Foundation. The investment will support LEO Pharma on its journey to strengthening its global leadership in medical dermatology and help accelerate innovation and growth. The LEO Foundation will remain the company’s majority owner.

In 2020, LEO Pharma launched its 2030 strategy with the ambition to be a global leader in medical dermatology by expanding its leading branded topical dermatology franchise and developing a deep, innovative pipeline. To support the company’s long-term objectives and ambitious growth strategy, the LEO Foundation now welcomes Nordic Capital as a new active minority owner. Nordic Capital will invest EUR 450 million in LEO Pharma and support the 2030 strategy in partnership with the LEO Foundation who will remain the company’s majority shareholder.

“The partnership with Nordic Capital is a strong confirmation that LEO Pharma is an exceptional company with a valuable heritage in topical dermatology that has clear potential to grow into a leader in innovative therapies,” said Jesper Mailind, CEO of the LEO Foundation. “I am very enthusiastic about the opportunity to welcome Nordic Capital onboard. With Nordic Capital we have secured a supportive and seasoned partner going forward with deep medical expertise and a strong track record supporting value creation in innovative healthcare businesses globally. Further, their strong Scandinavian heritage lends itself to a common cultural understanding and approach. I am confident that the partnership will further enhance the considerable growth potential of LEO Pharma, and it is a natural next step on LEO Pharma’s journey.”

Nordic Capital is one of the most active and experienced investors in healthcare globally. The firm has a strong track record of investing in innovative companies and building industry leaders in close partnership with management teams and co-owners. Since inception in 1989, Nordic Capital has invested more than EUR 7 billion in 29 healthcare investments across Europe and North America. Within pharmaceuticals, Nordic Capital’s current and previous investments include Acino, Nycomed, Fougera, Biovitrum and Meda. Today, Nordic Capital has 14 portfolio companies in the broader healthcare sector with c. 44,000 employees and aggregate revenues in excess of EUR 6 bn.

“We could not be more pleased that Nordic Capital is partnering with the LEO Foundation and LEO Pharma,” said Jonas Agnblad, Partner, Co-Head of Healthcare, Nordic Capital Advisors. “Dermatology is one of the fastest growing therapeutic areas within pharmaceuticals. We see scientific advances addressing significant unmet needs in the coming years, resulting in tremendous value for patients and healthcare systems. Nordic Capital shares the LEO Foundation’s and management’s vision and strategy for LEO Pharma. That strategy delivers growth through exciting upcoming innovative product launches as well as continued focus on the market-leading established product portfolio. This is a combination that we believe will deliver strong growth and opportunity in the future.”

Catherine Mazzacco, CEO of LEO Pharma, said: “I am delighted to welcome Nordic Capital as our new co-owner and partner in our ambitious endeavors to make LEO Pharma a global leader in medical dermatology. I am confident that we, with our new ownership model, have paved the way for further acceleration of our strong growth ambitions, and that this will enable us to further strengthen our dedication to dermatology, with a sustained focus on building a strong pipeline and innovating across science and technology to the benefit of patients.”

The transaction is subject to customary regulatory approvals and completion is expected to take place in the first half of 2021. The terms of the transaction were not disclosed.

Moelis & Company acted as financial advisor and Plesner acted as legal advisor to the LEO Foundation and LEO Pharma. BofA Securities acted as financial advisor and Accura acted as legal advisor to Nordic Capital.

About LEO Pharma

The company is a leader in medical dermatology with a robust R&D pipeline, a wide range of therapies and a pioneering spirit. Founded in 1908, LEO Pharma has devoted decades of research and development to advance the science of dermatology, setting new standards of care for people with skin conditions. LEO Pharma is headquartered in Denmark with a global team of 6,000 people, serving 93 million patients in more than 130 countries.

For more information about LEO Pharma, please visit: www.leo-pharma.com

About Nordic Capital

Nordic Capital is a leading private equity investor with a resolute commitment to creating stronger, sustainable businesses through operational improvement and transformative growth. Nordic Capital focuses on selected regions and sectors where it has deep experience and a long history. Focus sectors are Healthcare, Technology & Payments, Financial Services, and selectively, Industrial & Business Services. Key regions are Europe and globally for Healthcare and Technology & Payments investments. Since inception in 1989, Nordic Capital has invested EUR 16 billion in over 110 investments. Nordic Capital Advisors have local offices in Sweden, Denmark, Finland, Norway, Germany, the U.K. and the U.S.

For more information about Nordic Capital, please visit: www.nordiccapital.com

Footnote: “Nordic Capital” refers to any, or all, Nordic Capital branded funds and vehicles and associated entities. The general partners of Nordic Capital’s funds and vehicles are advised by several non-discretionary sub-advisory entities, any or all of which is referred to as “Nordic Capital Advisors”.

About the LEO Foundation

The LEO Foundation is one of Denmark’s largest commercial foundations. The Foundation is the controlling owner of the pharmaceutical company LEO Pharma and its main objective is to ensure the company’s long-term development and success. Besides the ownership, the Foundation provides philanthropic grants with the aim to support the best international research in skin diseases and make Denmark a global beacon for skin research.

For more information about the LEO Foundation, please visit: www.leo-foundation.org

Press contacts:

LEO Foundation
Signe Krabek
Head of Communication and Public Affairs
Tel: +45 20 49 68 69
Email: signe.krabek@leo-foundation.org

Nordic Capital
Katarina Janerud
Communications Manager
Tel: +46 8 440 50 50
Email: katarina.janerud@nordiccapital.com

LEO Pharma
Henrik Kyndlev
Director, Senior Media Advisor
Tel: + 45 31 40 61 80
Email: hdtdk@leo-pharma.com