02/03/2020 – 07:30 | Portfolio

As part of the transaction, thyssenkrupp AG will reinvest in thyssenkrupp Elevator and will acquire a substantial minority stake, underlining the attractive value creation potential of the business as well as a commitment to Germany and the Group’s employees.

thyssenkrupp Elevator is a leading international provider of elevator technology with operations in more than 1,000 locations worldwide. Headquartered in Germany, the Group generated revenues of €8.0bn in the financial year 2018/2019. thyssenkrupp Elevator provides innovative solutions to customers in more than 100 countries. Its product portfolio includes passenger and freight elevators, escalators and moving walkways, passenger boarding bridges, stair and platform lifts as well as a customised service business including maintenance of its entire product portfolio. The business operates a global sales and service network to ensure optimum proximity to its customers.

The consortium identified thyssenkrupp Elevator as an attractive investment opportunity given:

• Its strong market position in the US, Europe and Asia;
• The market growth opportunity supported by structural trends such as urbanisation and increased urban mobility with greater demands for access and convenience;
• Significant buy and build and consolidation opportunities given the fragmented industry;
• Planned investment in R&D, product and geography market expansion to drive both organic and inorganic growth; particularly in high growth markets such as Asia and for new energy-efficient product development;
• Its plans to further expand the Group’s service business for its own and third-party elevators.

“Cinven is delighted to invest in and accelerate the growth of thyssenkrupp Elevator both organically and through further acquisitions. Further investment in product development, R&D and international expansion will enable us to grow the business sustainably over the long-term,” said Bruno Schick, Partner and Head of DACH and Emerging Europe at Cinven. “Alongside Advent and RAG-Stiftung, we look forward to partnering with management to shape the next phase of this outstanding business.”

“thyssenkrupp Elevator has established itself as an international market leader, with a strong and innovative product portfolio. We look forward to working alongside Cinven and RAG-Stiftung to leverage our collective expertise and capital resources and to build on this excellent platform for further growth, thereby creating a strong, independent industrial company”, said Ranjan Sen, Managing Partner and Head of Germany at Advent International.

“We value thyssenkrupp Elevator’s long heritage. The consortium is committed to maintaining its headquarters and its strong roots in Germany. This asset fits into the foundation´s portfolio extremely well because we expect it to provide stable returns,” said Bernd Tönjes, Chairman of the Executive Board at RAG-Stiftung. “For an innovative company with high quality standards like thyssenkrupp Elevator, its employees are the most important asset. We will operate at all times as responsible investors.”

Germany is a key market for Advent and Cinven, who have both had a presence in Frankfurt for more than 20 years and successfully invested in more than 39 companies in Germany. Having invested in 130 companies in the industrial and business services sectors, Advent and Cinven have considerable experience in these markets. In addition, the RAG-Stiftung has strong ties to the Rhine-Ruhr region and is committed to contributing to the sustainable transformation of the area. The foundation is a long-term focused investor responsible for financing the obligations of the German coal mining industry in the Ruhr and Saar regions and in Ibbenbüren.

The consortium has a shared investment philosophy of responsibly growing leading businesses and is committed to a long-term value creation plan for thyssenkrupp Elevator. The consortium is strongly committed to being a fair and responsible owner. The investors have extensive experience of working with German industrial companies that are co-determined, and attach great importance to collaborating with employee representative bodies. In addition, the consortium will continue to invest in the training and the ongoing education of employees, as well as the sustainable maintenance of the Group’s operations across all geographies.

The transaction is expected to close by the end of the third quarter of 2020, subject to customary closing conditions and regulatory approvals.

On October 22^nd 2019, Investment AB Latour, through its wholly-owned subsidiary Bemsiq AB, signed an agreement to acquire S+S Regeltechnik GmbH, a company based in Nürnberg in Northern Bavaria, Germany. All closing conditions have now been fulfilled and the transaction has been completed as of January 22^nd, 2020.

Göteborg, January 22, 2020

INVESTMENT AB LATOUR (PUBL)
Johan Hjertonsson, CEO

For further information, please contact:
Johan Hjertonsson, President and CEO Investment AB Latour +46 702 29 77 93
Björn Lenander, CEO Latour Industries AB, +46 708 19 47 36
Mikael J Albrektsson, CEO Bemsiq AB, +46 733 23 36 06

Investment AB Latour is a mixed investment company consisting primarily of a wholly-owned industrial operations and an investment portfolio of listing holdings in which Latour is the principal owner or one of the principal owners. The investment portfolio consists of nine substantial holdings with a market value of about SEK 68 billion. The wholly-owned industrial operations has an annual turnover of SEK 13 billion.

• Press release 2020-01-22

3i Group plc (“3i”) today announces that it has agreed the sale of its investment in Aspen Pumps Group (“Aspen”), the global market leader in condensate removal pumps, to Inflexion Private Equity, the mid-market private equity firm.

Proceeds to 3i will be c. £208m, which represents a c. 55% uplift on its 30 September 2019 valuation. Including the £52m of proceeds already received, this represents a 4.1x return on invested capital and a 34% IRR.

Aspen is the global leader in the supply of condensate removal pumps into the fast growing air conditioning market. Aspen has also built an impressive portfolio of brands including Xtra accessory products, JAVAC tools, Advanced chemicals and Big Foot roof support systems. In December 2019 Aspen Pumps celebrated the milestone of selling 1 million pumps in a single year, further cementing its position as the wholesaler’s choice for innovation and reliability.

3i invested in Aspen in 2015 and has supported the company’s transformation from a UK exporter into a truly multinational business with a strong local footprint and people in each of its key geographies. As part of the buy-and-build strategy, Aspen has completed 6 acquisitions in France, Germany, Australia and the UK, enabling international revenues to more than treble over the last 5 years.

Pete Wilson, Partner and Head of UK Private Equity, 3i, commented: “This has been a classic 3i deal, where we have partnered with a high quality management team to support Aspen’s transformation from a UK exporter into a truly multinational business, through a combination of strong organic growth and innovative product development as well as targeted acquisitions. I’d like to thank Adrian Thompson and his management team for their commitment to delivering this plan and wish them all the best in the future.”

Adrian Thompson, CEO, Aspen Pumps, said, “Working with 3i, it was clear from the start that they really understood the business, had significant experience in our sector and brought a great deal of energy and enthusiasm. They have been a fantastic partner, supporting us on the development of our strategy, our acquisitions and on expanding our global footprint.”

Jonny Crane, Partner and Global Head of Industrials, 3i, added: “Aspen is an exceptional business which has been a strong fit with our industrial sector strategy, due to its market leading, innovative products that are increasingly critical to its end users. This has enabled it to build a strong and sustainable market position globally and the business is well positioned to build further on its leadership going forward.”

The transaction is expected to complete in Q1 2020, subject to customary antitrust approvals.

3i’s advisors on the transaction were Robert W. Baird (financial advisor), Travers Smith (legal), Deloitte (financial and tax) and LEK (commercial).

-Ends-

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For further information, contact: 

3i Group plc

Notes to editors:

About 3i Group

3i is a leading international investment manager focused on mid-market Private Equity and Infrastructure. Its core investment markets are northern Europe and North America. For further information, please visit: www.3i.com

About Aspen Pumps

Aspen Pumps Group is the global leader in the supply of condensate removal pumps into the fast growing air conditioning market. Aspen has also built an impressive portfolio of brands including Xtra accessory products, JAVAC tools, Advanced chemicals and Big Foot roof support systems. In December 2019 Aspen Pumps celebrated the milestone of selling 1 million pumps in a single year, further cementing its position as the wholesaler’s choice for innovation and reliability. With offices and warehousing in the UK, France, Germany, USA and Australia, Aspen Pumps Group has become a truly global business on its journey from an East Sussex start up founded by 3 air conditioning engineers in 1995.

Regulatory information

This transaction involved a recommendation of 3i Investments plc.

Luxmet completed their 0,8M€ oversubscribed round led by Innovestor: Advanced high temperature process monitoring and control systems for steel and metal industries.

Heavy industry plays its own significant climate change role. The media often highlights for example air travel and the meat industry as mainly responsible for carbon dioxide (CO2) emissions. But, as a matter of fact, heavy industry is a bigger source of CO2 emissions than air travel and all other transport modes combined.

Luxmet is on an important mission in cutting down CO2 emissions. Its ArcSpec solution is being applied in heavy industry, more specifically in steel production. Steel is now and will continue in the future to be an important part of sustainable development. Without steel, a low-carbon future is not possible: wind power and other renewable energy forms demand steel.

Electric arc furnace enables sustainably produced steel

Steel is produced in two alternative ways: the traditional model is to mine ore and refine it into steel in a blast furnace. Another more environmentally friendly method, is to utilize recycled steel: used metal is melted with electricity in a so-called electric arc furnace. This electric arc method generates merely a third of the CO2 emissions compared with blast furnace technology.

Luxmet’s ArcSpec technology makes electric arc furnaces even more environmentally friendly. According to Luxmet’s CEO Mikko Jokinen:

“Our solution analyzes all essential activities happening inside the furnace and therefore enables the optimization of the whole production process. Temperature’s inside the furnace can reach even 2000 degrees Celsius, so we attach our light-measuring sensors on top of the furnace’s roof. From there the observations are transferred to a nearby computer where the data is analyzed in real time.”

Founded in 2014, Luxmet’s technology is based on research from Oulu University. Jokinen joined the team when the research results were strong enough to start a company. Since then the company has expanded its operations: paying customers can at the moment be found in Finland, Norway, Spain, and Italy.

Going global

At the moment internationalization is at the core of Luxmet’s agenda. To enable it, Innovestor recently lead and organized Luxmet’s funding round. The target was to raise 0,8 million euros and the round was actually oversubscribed.

“We were supposed to have it open for a month but we reached the target in just two weeks”, Jokinen explained, clearly satisfied and excited about the co-operation with Innovestor.

The European Union requires significant CO2 emission reductions for heavy industry in the upcoming decades. This calls for innovations like ArcSpec.

At the moment Luxmet has a clear competitive advantage compared to other players in the domain. Their competitors either cannot deliver real time analyses or they concentrate on just one sub-process. ArcSpec is patented extensively which further strengthens Luxmet’s head start.

“ArcSpec is a result of many trials and errors. We realized early on that an innovation like this cannot be developed in the researcher’s lab. Instead, you need to try things out in actual factories. That is the only way to gather valuable real-life experience. Now our product is ripe and we are ready to go full steam global”, Jokinen sums up.

About Luxmet 

Luxmet has developed a unique solution for real-time measurement of steel production processes. The patented technology developed by the company is completely unique and enables for the first time reliable, real-time monitoring of the steel manufacturing process. The technology has been shown to improve processes by up to 8%. For steel producers, this means not only millions of euros in annual savings, but also more ecological production.

About Innovestor

Innovestor is an early-stage venture capital investor, who actively offers direct co-investment syndication opportunities and builds growth programs.  We manage the largest private venture backed portfolio in the Nordics and have to date invested around 140M€ together with our +500 co-investors. Around +1500 growth companies apply to our programs per year to whom we organize and facilitate +200 events with the support of +200 partners.