EQT Private Equity and Mubadala to acquire Envirotainer, the leading global provider of mission-critical biopharma transport services

eqt
  • As part of their broader strategic partnership, EQT Private Equity and Mubadala Investment Company to make a majority investment in Envirotainer, a global provider of mission-critical cold chain transportation solutions for pharmaceuticals
  • Envirotainer enables access to life-saving pharmaceuticals and vaccines via reliable and efficient cold chain solutions, and is the global leader in active temperature control for air transportation of temperature-sensitive pharmaceuticals
  • EQT Private Equity and Mubadala will support Envirotainer in its next phase of growth, by accelerating expansion in core markets and APAC in particular, scaling the newly launched CryoSure offering, investing in new technologies and continuing to roll-out third generation Releye platform

EQT is pleased to announce that the EQT X fund (“EQT Private Equity”), and Mubadala Investment Company (“Mubadala”), have agreed to acquire Envirotainer (the “Company”), the global leader of mission-critical, proprietary temperature-controlled supply chain solutions for the transportation of biopharmaceuticals, from Cinven and Novo Holdings. The enterprise value amounts to around EUR 2.8 billion.

Envirotainer was founded in 1985 in Stockholm, Sweden, where its headquarters, R&D and production are based. Envirotainer designs, manufactures and leases active temperature-controlled containers, used primarily for air freighting biopharma products. With a fleet of circa 6,700 containers globally and approximately 375 employees in 20 countries, the Company is the global leader in active temperature control for air transportation of temperature-sensitive pharmaceuticals. Envirotainer has more than 600 customers worldwide, including many global blue-chip pharma and biotech companies.

Millions of people across the globe depend on the safe delivery of biopharmaceuticals that require temperature control to maintain their integrity and quality. Today, lack of access to medicines is a cause for distress that disproportionately impacts underserved communities, whose situation is likely to be exacerbated by chronic diseases resulting from changing diets and lifestyles, as well as from air and water pollution. Envirotainer expands access to vital pharmaceuticals and vaccines through its patient-safe, reliable and efficient cold chain solutions, which also offer one of the lowest carbon footprint solutions in the industry.

EQT Private Equity and Mubadala will seek to support Envirotainer in its next phase of growth by accelerating expansion in APAC and continuing growth in its other core markets, and will leverage EQT’s local-with-locals approach and Mubadala’s global network to do so. Building on the sector-related expertise of EQT’s network and Mubadala, EQT Private Equity and Mubadala will help scale the newly launched CryoSure offering and continue the successful roll-out of third-generation Releye platform, while investing behind new technology innovations, digitalization and sustainability in its operations.

Ali Farahani, Partner within EQT Private Equity’s Advisory Team, said, “The temperature-controlled distribution of pharma products offers very attractive and thematic exposure to the fast-growing biopharma end-market. Envirotainer is an integral part of the global pharmaceutical infrastructure and the clear global market leader with significant scale advantages, superior operations and industry-leading performance and customer satisfaction. The company has a clear purpose of enabling access to life-saving pharmaceuticals and offers reusable solutions with significantly less CO2 emissions compared to traditional air-freight solutions. We continue to see significant growth potential ahead and are excited to partner with the management team to unlock the full potential together with our partners at Mubadala.”

Camilla Macapili Languille, Head of Life Sciences for Mubadala, said, “Envirotainer plays a mission-critical role in the healthcare ecosystem by ensuring the safe and reliable delivery of drugs from pharma companies to hospitals, clinics, and ultimately, patients. Their extensive international footprint ideally positions Envirotainer to meet the pharma industry’s growing need for global temperature-controlled distribution and as the undisputed market leader, they are continuing to pioneer developments in the sector with forward-thinking R&D innovation. We have strong conviction in the company’s growth trajectory and will work closely with management and our partners at EQT to ensure its long-term success.”

Peter Gisel-Ekdahl, CEO, “We are pleased with the confidence that EQT and Mubadala have shown us by investing in the company and look forward to closely collaborating to further develop the business. This long-term partnership will strengthen Envirotainer and help us deliver on our purpose of enabling access to life-saving pharmaceuticals. At the same time, this investment, from such esteemed investors, confirms the strength of Envirotainer’s business model and the company’s very exciting future.”

EQT and Mubadala were advised by Jefferies International (M&A), McKinsey & Company (commercial), White & Case (legal), and KPMG (financial, tax, operations).

The transaction is subject to customary conditions and approvals and is expected to close in Q3 2022. With the acquisition of Envirotainer, EQT X (target fund size of EUR 20.0 billion and hard cap of EUR 21.5 billion) will be 0-5 percent invested based on its target fund size. EQT X will be activated and start charging management fees upon the closing of its first transaction, currently expected to be the closing of the acquisition of Envirotainer. EQT IX is currently 80-85 percent invested, following recent portfolio company add-on acquisitions, and continues to be in its commitment period but management fees will, following activation of EQT X, be based on net invested capital.

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

The information contained herein does not constitute an offer to sell, nor a solicitation of an offer to buy, any security, and may not be used or relied upon in connection with any offer or solicitation. Any offer or solicitation in respect of EQT X will be made only through a confidential private placement memorandum and related documents which will be furnished to qualified investors on a confidential basis in accordance with applicable laws and regulations. The information contained herein is not for publication or distribution to persons in the United States of America. Any securities referred to herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), and may not be offered or sold without registration thereunder or pursuant to an available exemption therefrom. Any offering of securities to be made in the United States would have to be made by means of an offering document that would be obtainable from the issuer or its agents and would contain detailed information about the issuer of the securities and its management, as well as financial information. The securities may not be offered or sold in the United States absent registration or an exemption from registration.

About EQT
EQT is a purpose-driven global investment organization with EUR 77 billion in assets under management across 36 active funds. EQT funds have portfolio companies in Europe, Asia-Pacific and the Americas with total sales of approximately EUR 29 billion and more than 280,000 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 Mubadala Investment Company
Mubadala Investment Company is a sovereign investor managing a global portfolio, aimed at generating sustainable financial returns for the Government of Abu Dhabi.

Mubadala’s $284 billion portfolio spans six continents with interests in multiple sectors and asset classes. It leverages its deep sectoral expertise and long-standing partnerships to drive sustainable growth and profit, while supporting the continued diversification and global integration of the economy of the United Arab Emirates.

More info: www.mubadala.com

About Envirotainer
Envirotainer is the undisputed global market leader in secure cold-chain solutions for intercontinental transport of pharmaceuticals. The company develops, manufactures, and offers leasing of innovative

 container solutions and dewars for cryogenic shipping, including validation, support, and service, for pharma products that require a controlled environment. Thanks to a truly global presence with the world’s largest active container fleet, the most extensive network, and more than 35 years of industry expertise, Envirotainer is able to meet the customers’ need for innovative and reliable solutions – available from any location to any destination. The company operates through an open, global network of airlines, forwarders and couriers and the headquarters is located outside of Stockholm, Sweden.

For more information, please visit  www.envirotainer.com

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Cinven and Novo Holdings to sell Envirotainer

Novo Holdings

International private equity firm, Cinven, and co-investor, Novo Holdings, have agreed to the sale of Envirotainer (‘the Company’), a leading global provider of mission-critical, temperature-controlled air cargo services for the pharmaceutical industry, to EQT and Mubadala, for an Enterprise Value of approximately €2.8 billion. As part of the transaction, Envirotainer’s current shareholders will have the opportunity to reinvest in the business as minority shareholders.

Founded in 1985 and headquartered in Stockholm, Sweden, Envirotainer designs, manufactures and leases active temperature-controlled containers, used primarily for air freighting biopharma products. With a fleet of c. 6,700 containers globally, the Company has more than 600 customers worldwide, including many blue-chip global pharma and biotech companies. Envirotainer has approximately 375 employees and an extensive global network of more than 60 service stations.

The Company developed and marketed the first container with an active temperature control system in 1995, enabling it to meet the complex needs of transporting biopharmaceuticals at stable temperatures. Today, Envirotainer supports the transportation of approximately 2 million doses of medicines per day for all major pharmaceutical manufacturers, ensuring medicine is safely delivered to destinations around the globe.

Cinven’s Nordic team identified Envirotainer as an attractive investment opportunity in 2012 and tracked the business closely for six years, working with Cinven’s Business Services, Healthcare and Industrials Sector teams to develop a compelling investment thesis for the Company. The Sixth Cinven Fund together with co-investor Novo Holdings, ultimately acquired Envirotainer in September 2018.

Since acquisition, Cinven and Novo Holdings have worked in close partnership with the Company to drive its strong performance, including through:

  • Significant investment in R&D and innovation to support new product launches, including the next generation Releye platform, which has further enhanced Envirotainer’s market-leading sustainability credentials, and CryoSure, a shipment solution for the cryogenic (-70°C) segment;
  • International expansion, with Envirotainer continuing to expand its geographical reach and entering new markets; notably, Envirotainer has significantly grown its business in China, India and South Korea, key emerging pharmaceuticals markets, through investment into three new service stations, the local sales force and expansion of existing infrastructure;
  • Enhancing Envirotainer’s digital capabilities, introducing live shipment monitoring for customers as well as leveraging data analytics to facilitate predictive maintenance of the large container fleet; and
  • Investments in the organisation, including strengthening the senior management team and Envirotainer’s operational capabilities, as well as supporting the relocation to a new HQ. This has ensured continuous best-in-class delivery of Envirotainer’s mission-critical services, minimising product waste for customers and successfully navigating through the disruption to global supply chains arising from the COVID-19 pandemic.

Commenting on the investment, Pontus Pettersson, Partner at Cinven, said:

“Envirotainer is a great business in a highly attractive market. We are very proud of the success that the Company has achieved during Cinven’s ownership period – it is a great example of Cinven’s strategy to back leading Swedish and European businesses to expand internationally and to invest in new products, digitalisation, and operational excellence to drive growth.

“Envirotainer is in a strong position to continue to take advantage of the market opportunity and we are confident the company will continue to do very well in the future.”

Peter Gisel-Ekdahl, CEO of Envirotainer, added:

“The support of Cinven and Novo Holdings has enabled us to continue to develop best-in-class solutions to support our clients and the healthcare industry, including the recently launched Releye platform and our new CryoSure solution which has enabled us to enter into a new and attractive part of the temperature-controlled transportation market. As a result, Envirotainer has continued to maintain a market-leading position and to serve all top pharmaceutical companies. We are very excited for the company’s next chapter.”

Christian Salling, Senior Partner at Novo Holdings, also commented:

“Envirotainer has been on an impressive journey in recent years and management has done an outstanding job of creating a leading provider of mission-critical services to the pharmaceutical industry. We are very proud to be part of that journey and Envirotainer is a good example of our engaged ownership model, that we exercise together with leading investment partners.”

Completion of the transaction is expected in the second half of 2022 and is subject to customary antitrust approvals.

Advisors on the transaction include: JP Morgan (M&A); Vinge (legal); Clifford Chance (legal)

 

Media contacts

Cinven
Clare Bradshaw Tel. +44 (0)7881 918 967 

Email. Clare.Bradshaw@cinven.com

 

FTI Consulting LLP (Advisers to Cinven)
Edward Bridges Tel. +44 (0)7768 216 607 

Email. Edward.Bridges@fticonsulting.com

 

Ben Fletcher Tel. +44 (0)7508 580 490 

Email. Ben.Fletcher@fticonsulting.com

 

Envirotainer
Sofia Wiwen-Nilsson Tel. +46 (0)730 715019 

 

Email. Sofia.Wiwen-Nilsson@envirotainer.com

 
Novo Holdings
Christian Mostrup Tel. +45 3067 4805
  Email. CIMS@novo.dk

 

 About Cinven

Cinven is a leading international private equity firm focused on building world-class global companies. Its funds invest in six key sectors: Business Services, Consumer, Financial Services, Healthcare, Industrials and Technology, Media and Telecommunications (TMT). Cinven has offices in London, New York, Frankfurt, Paris, Milan, Madrid, Guernsey and Luxembourg.

Cinven has invested over €2 billion of equity in Nordic companies and currently owns fast growing Group.One in Sweden. Historical investments in the Nordic region include Phadia, Ahlsell, Coor Service Management and Visma.

Cinven takes a responsible approach towards its portfolio companies, their employees, suppliers, local communities, the environment and society.

Cinven Capital Management (V) General Partner Limited, Cinven Capital Management (VI) General Partner Limited, Cinven Capital Management (VII) General Partner Limited and Cinven Capital Management (SFF) General Partner Limited are each authorised and regulated by the Guernsey Financial Services Commission, and Cinven Limited, the adviser to the Cinven Funds, is authorised and regulated by the Financial Conduct Authority.

In this press release ‘Cinven’ means, depending on the context, any of or collectively, Cinven Holdings Guernsey Limited, Cinven Partnership LLP, and their respective Associates (as defined in the Companies Act 2006) and/or funds managed or advised by any of the foregoing.

For additional information on Cinven please visit www.cinven.com and www.linkedin.com/company/cinven/.

 

About Novo Holdings

Novo Holdings A/S is a private limited liability company wholly owned by the Novo Nordisk Foundation. It is the holding company of the Novo Group, comprising Novo Nordisk A/S and Novozymes A/S, and is responsible for managing the Novo Nordisk Foundation’s assets.Novo Holdings is recognized as a leading international life science investor, with a focus on creating long-term value. As a life science investor, Novo Holdings provides seed and venture capital to development-stage companies and takes significant ownership positions in growth and well-established companies. Novo Holdings also manages a broad portfolio of diversified financial assets. Further information: www.novoholdings.dk

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Cinven and Novo Holdings to sell Envirotainer

Cinven

International private equity firm, Cinven, and co-investor, Novo Holdings, have agreed to the sale of Envirotainer (‘the Company’), a leading global provider of mission-critical, temperature-controlled air cargo services for the pharmaceutical industry, to EQT and Mubadala, for an Enterprise Value of approximately €2.8 billion. As part of the transaction, Envirotainer’s current shareholders will have the opportunity to reinvest in the business as minority shareholders.

Founded in 1985 and headquartered in Stockholm, Sweden, Envirotainer designs, manufactures and leases active temperature-controlled containers, used primarily for air freighting biopharma products. With a fleet of c. 6,700 containers globally, the Company has more than 600 customers worldwide, including many blue-chip global pharma and biotech companies. Envirotainer has approximately 375 employees and an extensive global network of more than 60 service stations.

The Company developed and marketed the first container with an active temperature control system in 1995, enabling it to meet the complex needs of transporting biopharmaceuticals at stable temperatures. Today, Envirotainer supports the transportation of approximately 2 million doses of medicines per day for all major pharmaceutical manufacturers, ensuring medicine is safely delivered to destinations around the globe.

Cinven’s Nordic team identified Envirotainer as an attractive investment opportunity in 2012 and tracked the business closely for six years, working with Cinven’s Business Services, Healthcare and Industrials Sector teams to develop a compelling investment thesis for the Company. The Sixth Cinven Fund together with co-investor Novo Holdings, ultimately acquired Envirotainer in September 2018.

Since acquisition, Cinven and Novo Holdings have worked in close partnership with the Company to drive its strong performance, including through:

  • Significant investment in R&D and innovation to support new product launches, including the next generation Releye platform, which has further enhanced Envirotainer’s market-leading sustainability credentials, and CryoSure, a shipment solution for the cryogenic (-70°C) segment;
  • International expansion, with Envirotainer continuing to expand its geographical reach and entering new markets; notably, Envirotainer has significantly grown its business in China, India and South Korea, key emerging pharmaceuticals markets, through investment into three new service stations, the local sales force and expansion of existing infrastructure;
  • Enhancing Envirotainer’s digital capabilities, introducing live shipment monitoring for customers as well as leveraging data analytics to facilitate predictive maintenance of the large container fleet; and
  • Investments in the organisation, including strengthening the senior management team and Envirotainer’s operational capabilities, as well as supporting the relocation to a new HQ. This has ensured continuous best-in-class delivery of Envirotainer’s mission-critical services, minimising product waste for customers and successfully navigating through the disruption to global supply chains arising from the COVID-19 pandemic.

Commenting on the investment, Pontus Pettersson, Partner at Cinven, said:

“Envirotainer is a great business in a highly attractive market. We are very proud of the success that the Company has achieved during Cinven’s ownership period – it is a great example of Cinven’s strategy to back leading Swedish and European businesses to expand internationally and to invest in new products, digitalisation, and operational excellence to drive growth.

“Envirotainer is in a strong position to continue to take advantage of the market opportunity and we are confident the company will continue to do very well in the future.”

Peter Gisel-Ekdahl, CEO of Envirotainer, added:

“The support of Cinven and Novo Holdings has enabled us to continue to develop best-in-class solutions to support our clients and the healthcare industry, including the recently launched Releye platform and our new CryoSure solution which has enabled us to enter into a new and attractive part of the temperature-controlled transportation market. As a result, Envirotainer has continued to maintain a market-leading position and to serve all top pharmaceutical companies. We are very excited for the company’s next chapter.”

Christian Salling, Senior Partner at Novo Holdings, also commented:

“Envirotainer has been on an impressive journey in recent years and management has done an outstanding job of creating a leading provider of mission-critical services to the pharmaceutical industry. We are very proud to be part of that journey and Envirotainer is a good example of our engaged ownership model, that we exercise together with leading investment partners.”

Completion of the transaction is expected in the second half of 2022 and is subject to customary antitrust approvals.

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Advent International to Acquire a Significant Stake in Imperial Dade, a Leading North American Distributor of Food Service Packaging and Janitorial Supplies, from Bain Capital Private Equity

BainCapital

Boston and Jersey City, NJ – May 2, 2022 – Advent International (“Advent”), today announced it has signed a definitive agreement to acquire a significant stake in Imperial Dade (the “Company”), the leading distributor in North America of foodservice packaging and janitorial supplies, from Bain Capital Private Equity (“Bain Capital”).  Bain Capital, which first invested in Imperial Dade in 2019, and Advent will have joint Board governance.  Imperial Dade will continue under the leadership of Robert and Jason Tillis, Chairman and CEO respectively, who remain significant investors in the business alongside the current management team.  Financial terms of the private transaction were not disclosed.

Advent International to Acquire a Significant Stake in Imperial Dade, a Leading North American Distributor of Food Service Packaging and Janitorial Supplies, from Bain Capital Private Equity

Founded in 1935 and based in Jersey City, NJ, Imperial Dade is a leading independently owned and operated distributor of foodservice packaging, facilities maintenance supplies, floor equipment, and industrial packaging serving North America, Puerto Rico, and the Caribbean.  With approximately 6,400 employees, Imperial Dade provides customized supply chain solutions to customers in the foodservice, grocery, hospitality, cruise lines, healthcare, retail, government, facilities maintenance, and export market segments.  Imperial Dade operates from a network of strategically located distribution centers totaling over 10.2 million square feet of warehouse space across North America  and serves more than 90,000 customers.

“When we invested in Imperial Dade three years ago, we had a shared vision with the Tillis Family that there was an enormous opportunity to build on the strong foundation they had created and to create an industry leader focused on best-in-class customer service.  Under their leadership, Imperial Dade has become the preeminent platform in North America that quality, independent operators are proud to join.  Now we are excited to continue to support Imperial Dade’s growth journey with our new partners at Advent, with whom Bain Capital has successfully collaborated in the past,” said Ken Hanau, a Managing Director and Co-Head of Industrials at Bain Capital Private Equity.

Since 2019, Imperial Dade’s revenue has increased from $2 billion to $5 billion as a result of organic growth and the acquisition of regional distributors expanding their geographic reach and customer service capabilities in North America.  In March 2022, Imperial Dade reached an agreement to acquire Veritiv Canada, Inc. to extend its presence into Canada.

“Customers are at the core of all we do as we work to provide the best possible solutions through the products and services we offer,” said Jason Tillis.  “We appreciate the support and partnership Bain Capital has provided as we have expanded our business and customer mix tremendously, and we look forward to working with Advent as we continue to expand our platform,” said Robert Tillis.

“We are thrilled to partner with Jason and Robert Tillis and the entire Imperial Dade management team, along with Manny Perez de la Mesa, Bain Capital and Audax, to support Imperial Dade’s next chapter of growth.  Imperial Dade has developed a truly differentiated value proposition based on its best-in-class service and industry-leading product portfolio.  We look forward to continuing to serve the Company’s stakeholders, including its thousands of valued customers, its employees, and the communities in which it operates,” said Stephen Hoffmeister, a Managing Director at Advent International.

“I’m proud to partner with Jason and Robert Tillis, as they’ve built a terrific platform providing exceptional value to Imperial Dade customers and suppliers, while providing exceptional opportunities for its employees.  I am very much looking forward to continuing to support the business as it embarks on the next phase of its growth,” said Perez de la Mesa, lead director of Imperial Dade and former CEO of Pool Corporation.

Audax Private Equity, which invested in Imperial Dade in 2016, also continues to be a significant investor in Imperial Dade.

Harris Williams and Goldman Sachs & Co. LLC are serving as financial advisors, PwC is serving as accounting advisor, and Kirkland & Ellis LLP is serving as legal advisor, to Bain Capital and Imperial Dade.  Baird is serving as financial advisor, and Weil, Gotshal & Manges LLP is serving as legal advisor to Advent.

About Imperial Dade
Imperial Dade is the leading independently owned and operated distributor of foodservice packaging, facilities maintenance supplies and equipment in North America.
Learn more at www.imperialdade.com

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 390 private equity investments across 41 countries, and as of December 31, 2021, had $88 billion in assets under management. Advent has considerable experience in distribution, having previously supported market leaders such as ABC Supply, MORSCO Inc., Distribution International, Rubix and Caldic. With 15 offices in 12 countries, Advent has established a globally integrated team of over 250 investment professionals across North America, Europe, Latin America, and Asia. The firm focuses on investments in five core sectors, including business and financial services; healthcare; industrial; retail, consumer and leisure; and technology. For over 35 years, Advent has been dedicated to international investing and 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 Bain Capital Private Equity
Bain Capital Private Equity has partnered closely with management teams to provide the strategic resources that build great companies and help them thrive since its founding in 1984. Bain Capital Private Equity’s global team of more than 250 investment professionals creates value for its portfolio companies through its global platform and depth of expertise in key vertical industries including healthcare, consumer/retail, financial and business services, industrials, and technology, media and telecommunications. Bain Capital has 22 offices on four continents. The firm has made primary or add-on investments in more than 1,000 companies since its inception. In addition to private equity, Bain Capital invests across asset classes including credit, public equity, venture capital and real estate, managing approximately $160 billion in total and leveraging the firm’s shared platform to capture opportunities in strategic areas of focus.

For more information, visit: www.baincapital.com 

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KKR Announces Tender Offer to Acquire Hitachi Transport System

KKR

TOKYO–(BUSINESS WIRE)– KKR, a leading global investment firm, today announced it intends to make a tender offer for the common shares of Hitachi Transport System Ltd. (“HTS” or the “Company”; TSE stock code 9086) through HTSK Co., Ltd. (the “Offeror”), an entity owned by the investment funds managed by KKR.

Hitachi Transport System is a leader in the third-party logistics business (“3PL”) in Japan. The Company provides supply chain solutions for customers who outsource logistics functions such as logistics system integration, inventory and order control, logistics center operations, factory logistics, and transportation and delivery services. HTS has a strong domestic 3PL business as well as an international business which includes forwarding business and related 3PL business.

Under a newly published medium-term management plan ending March 2025 (“LOGISTEED 2024”), the Company looks to enhance its capabilities through the integration of digital transformation, logistics technology and on-site capabilities in order to strengthen and expand its overseas presence, become a leading 3PL player in Asia, evolve its “Smart Logistics”, and bolster its Environmental, Social, and Governance (ESG) management practices. The Company’s long-term vision (“LOGISTEED 2030”) will focus on advancing collaboration to become a global leader in the 3PL business. This will be achieved through high value-added solutions for optimizing supply chain management, improving customer experience and efficiency through digital transformation, enhancing global value chains, engaging in investment-first projects, as well as strategic merger and acquisitions, and strengthening its position as a platform provider.

In connection with the tender offer, the Offeror has entered into an agreement (the “Agreement”) with Hitachi, Ltd. (“Hitachi”), the lead shareholder of HTS, under the terms of which, following a share consolidation after the tender offer, HTS will acquire Hitachi’s 39.91% holding in a share buyback. Thereafter, Hitachi will reinvest by acquiring 10% of shares with voting rights in HTSK Holdings Co., Ltd. that holds shares of the Offeror (the “Offeror Parent”) and KKR will hold 90% of shares with voting rights in the Offeror Parent.

The proposed tender offer price of JPY8,913 per share and the share buyback price of JPY6,632 per share have been determined based on the negotiations among KKR, HTS, and Hitachi. This transaction will be financed predominantly from KKR’s Asia IV Fund and is designed with a low-leverage capital structure for HTS’s sustainable growth.

The proposed tender offer price represents1:

  • A premium of 166.22% to Hitachi Transport System’s 12-month average closing price to June 16, 2021
  • A premium of 161.53% to Hitachi Transport System’s 6-month average closing price to June 16, 2021

KKR expects to commence the tender offer by late September 2022, subject to regulatory approvals in Japan and other jurisdictions. For details regarding the conditions of the commencement of the tender offer, please refer to the full text of the filing notice issued today titled, “Notice regarding the commencement of the tender offer for Hitachi Transport System Ltd. (TSE stock code 9086).”

Hiro Hirano, Co-Head of Asia Pacific Private Equity at KKR and CEO of KKR Japan, said, “We are pleased to have this opportunity to invest in Hitachi Transport System, a pioneer in the Japanese 3PL market that has provided innovative logistics and supply chain solutions for many years. We look forward to utilizing KKR’s global network and expertise to accelerate Hitachi Transport System’s next phase of growth and help the Company achieve its goal of becoming the leading 3PL company in Asia through technology enablement and inorganic growth in a collaborative manner.”

Japan continues to be a key market for KKR in Asia Pacific and globally. Since entering the Japanese market in 2006, KKR has been an active investor and worked with leading Japanese companies on a number of landmark transactions and transformation developments across a range of asset classes, including private equity, infrastructure, real estate, and growth investment. Past investments have included Yayoi, a leading cloud accounting software provider, Seiyu, a nationwide supermarket chain, Kokusai Electric, a leading semiconductor manufacturer, PHC, a leading manufacturer of medical devices, Koki Holdings, a power tool and life science equipment manufacturer, Marelli, a leading supplier of automotive components, Data X, an integrated data-driven marketing SaaS platform in Japan. In addition, KKR recently invested in Central Tank Terminal, Japan’s largest independent chemical storage tank operator, as an infrastructure investment and Mitsubishi Corp.-UBS Realty Inc. (MC-UBSR), one of the largest real estate asset managers in Japan, as a real estate investment.

Forward-looking Statements

This press release has been prepared for the purpose of informing the public of the tender offer and has not been prepared for the purpose of soliciting an offer to sell, or making an offer to purchase, any securities. If shareholders wish to make an offer to sell their shares in the tender offer, they should first read the tender offer explanation statement for the tender offer and offer their shares or stock options for sale at their own discretion. This press release shall neither be, nor constitute a part of, an offer to sell or purchase, or a solicitation of an offer to sell or purchase, any securities, and neither this press release (or a part thereof) nor its distribution shall be interpreted to be the basis of any agreement in relation to the tender offer, and this press release may not be relied on at the time of entering into any such agreement.

The tender offer will be conducted in accordance with the procedures and information disclosure standards prescribed by Japanese law, which may differ from the procedures and information disclosure standards in the United States. In particular, Section 13(e) and Section 14(d) of the U.S. Securities Exchange Act of 1934, as amended, and the rules prescribed thereunder do not apply to the tender offer, and the tender offer does not conform to those procedures and standards.

Unless otherwise specified, all procedures relating to the tender offer are to be conducted entirely in Japanese. If all or any part of a document relating to the tender offer is prepared in the English language and there is any inconsistency between the English-language documentation and the Japanese-language documentation, the Japanese-language documentation will prevail.

The financial advisors to the Offeror, Hitachi, and HTS as well as the tender offer agent (including their respective affiliates) may engage prior to the commencement of, or during, the tender offer period in the purchase or arrangement to purchase shares of the Company for their own account or for their customers’ accounts to the extent permitted under the Japanese Financial Instruments and Exchange Act, Rule 14e-5(b) of the U.S. Securities Exchange Act of 1934, as amended and other applicable laws and regulations. Such purchases may be made at the market price through market transactions, or at a price determined by negotiation outside of the market. In the event information regarding such purchases is disclosed in Japan, such information will also be disclosed on the English homepage of the financial advisor or tender offer agent conducting such purchases or will otherwise be made publicly available.

About KKR

KKR is a leading global investment firm that offers alternative asset management as well as capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

_____________________________________

1 Figures are based on the closing price of Hitachi Transport System on June 16, 2021, prior to the speculation of the start of the bidding process and are hence not impacted by speculation.

KKR Media

Anita Davis
+852 3602 7335
Anita.Davis@kkr.com

Wei Jun Ong
+65 6922 5813
WeiJun.Ong@kkr.com

Finsbury Glover Hering (for KKR Japan)
Deborah Hayden
+81 70 2492 0463 / deborah.hayden@fgh.com

Source: KKR

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Strategic Lease Partners Acquires $780 Million in Net Leased Properties in Q4 2021 for KKR

KKR

January 24, 2022

NEW YORK–(BUSINESS WIRE)– Strategic Lease Partners (“SLP”), a platform launched by global investment firm KKR to acquire a diversified portfolio of triple-net lease (NNN) real estate, closed six transactions in the fourth quarter of 2021 for a total of $780 million. SLP is working closely with KKR’s real estate, credit and capital markets teams to underwrite a wide range of mission-critical properties and deliver customized sale-leaseback solutions for a group of high quality corporate and sponsor-backed tenants. The platform is initially targeting to acquire more than $3 billion in assets, primarily capitalized through KKR’s credit and real estate funds.

“SLP has built great momentum in its first few months of operation,” said Peter Sundheim, Managing Director on KKR’s real estate team. “We are delighted with the exceptional quality and diversification of the assets SLP has acquired for our NNN portfolio.”

Michelle Hour, Director on KKR’s credit team added, “SLP’s ability to invest in deals of all sizes and to utilize its access to the KKR platform to deliver strong underwriting with speed and certainty is clearly resonating with sponsors and corporate tenants seeking to unlock the value of their real estate.”

The six transactions SLP closed last quarter followed the platform’s launch in August 2021 and consisted primarily of mission critical industrial assets, with a focus on sale-leasebacks (SLBs) for private equity-backed companies with durable business models. The transactions ranged in size from under $15 million for an individual property to over $500 million for a portfolio and included both domestic and cross-border portfolios. SLP’s acquisitions comprised 31 individual assets across nearly 5.4 million square feet with a weighted average lease term (WALT) of over 16 years, while over half of the portfolio holds LEED designation.

SLP’s Q4 2021 acquisitions include the following transactions:

  • A 20-property, multi-state manufacturing and distribution portfolio that is majority LEED certified and leased to a global beverage brand on a long-term basis
  • A four-building manufacturing portfolio across major Canadian and United States markets leased to a leading North American retail and food services company
  • An approximately 50,000-square foot, LEED Platinum office building in Connecticut leased to an international investment firm
  • A four-building manufacturing portfolio across New Jersey, Georgia and Wisconsin leased to a plastics company
  • An approximately 350,000-square foot distribution facility in Illinois leased to a health and nutrition brand
  • An approximately 125,000-square foot distribution facility in Tennessee leased to a major wholesale tire distributor

“Our first six purchases are a great representation of the breadth of SLP’s underwriting capabilities,” said Andrés Dallal, Partner at SLP. “Our platform, supported by the institutional expertise and resources of KKR’s team, makes us an ideal partner for companies in need of comprehensive, creative net lease solutions.”

“SLP has the expansive scope and ability to deliver business-empowering sale-leaseback solutions for a full array of asset types, from single-tenant deals to multi-property portfolios across regions,” added Joseph Mastrocola, Partner at SLP. “As we look to continue building on our momentum over the coming months, we are excited to close investments that deliver value in an appreciating and evolving commercial and industrial market.”

SLP is actively continuing to seek investments including SLB transactions, net-leased property and portfolio acquisitions and forward takeouts of built-to-suit developments. SLP evaluates all property types across the credit spectrum, with a focus on sub-investment grade tenants and transactions between $10 million and more than $1 billion across North America. The firm can be contacted directly at Inquiries@StratLP.com.

About Strategic Lease Partners

Strategic Lease Partners (SLP) is a diversified triple-net lease (NNN) real estate investment platform, which engages the capabilities and resources of KKR’s real estate, credit and capital markets teams to acquire NNN properties and deliver sale-leaseback solutions to corporate tenants. Sponsored by global investment firm KKR, SLP provides tenants from a wide-range of industries with reliable ownership and long-term leasing for their mission-critical real estate. For more information, please visit www.stratlp.com.

About KKR

KKR is a leading global investment firm that offers alternative asset management and capital markets and insurance solutions. KKR aims to generate attractive investment returns by following a patient and disciplined investment approach, employing world-class people, and supporting growth in its portfolio companies and communities. KKR sponsors investment funds that invest in private equity, credit and real assets and has strategic partners that manage hedge funds. KKR’s insurance subsidiaries offer retirement, life and reinsurance products under the management of The Global Atlantic Financial Group. References to KKR’s investments may include the activities of its sponsored funds and insurance subsidiaries. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

Business Inquiries:
Inquiries@StratLP.com

Media:
Miles Radcliffe-Trenner
212-750-8300
media@kkr.com

Source: KKR

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Carlyle Commits Over $100 Million in Battery Storage and Electric Vehicle Infrastructure Technologies to Accelerate the Energy Transition

Carlyle

New York, New York – Global investment firm Carlyle (NASDAQ: CG) today announced complementary growth investments by Carlyle-managed funds in community-scale clean energy developer NineDot Energy and electric vehicle (“EV”) charging and services company Fermata Energy, representing a more than $100 million commitment to technological disruptions advancing the energy transition.

The investments in NineDot and Fermata Energy bring total capital committed by funds managed by Carlyle’s infrastructure platform in the last 24 months to renewable and sustainable energy companies to more than $1.2 billion.

Founded in 2015, NineDot Energy is a New York City-based clean-tech developer that designs and deploys community-scale energy generation and battery storage projects. Carlyle’s investment will enable NineDot to develop, build, and operate over 1,600 megawatt hours (MWh) of clean energy systems by 2026 that strengthen local power grid infrastructure and provide clean, reliable, and resilient power to tens of thousands of New York households and businesses. As a top developer focused on the New York City market, NineDot aims to support New York State’s mission to achieve its goal of 100% clean energy by 2040, including a recently-doubled target of 6,000 MW of energy storage by 2030.

Founded in 2010, Fermata Energy is an electric vehicle (“EV”) charging and services company targeting the growing bi-directional EV charging market, working with leading automakers, including Ford and Nissan. Fermata Energy designs, supplies, and operates the technologies required to integrate EVs into the home, buildings, and electric grid. Fermata Energy’s “Vehicle-to-Everything” (“V2X”) platform incorporates a bi-directional charger and proprietary software with the EV and electricity user, allowing the vehicle to act as a dispatchable energy storage resource when the vehicle is not in use.

Pooja Goyal, Chief Investment Officer of Carlyle’s Infrastructure Group, said, “There is a large and growing investment opportunity in building the renewable energy capacity required to power a lower-carbon grid.  Batteries and the greater penetration of electric vehicles within our transportation mix both play a vital role in transitioning to a cleaner, more reliable grid. We are proud of our new partnerships with NineDot and Fermata Energy, and look forward to leveraging Carlyle’s deep industry expertise, broad network, and late-stage development capabilities to support our partners in expanding into broader energy transition growth channels.”

NineDot and Fermata Energy have an existing partnership in place with Revel to deploy vehicle-to-grid (V2G) technology to supply energy back to the power grid during times of peak electricity demand.

David Arfin, CEO and Co-Founder of NineDot Energy said, “NineDot Energy thrives on developing innovative business models and projects that support a more resilient electric grid while simultaneously delivering economic savings and reducing carbon emissions. Carlyle’s investment will enable NineDot to further advance its leadership position in providing community clean energy solutions in New York and beyond.”

David Slutzky, Founder and CEO of Fermata Energy said, “To enable the transition to a clean energy economy, abundant energy storage must be deployed quickly and at scale. The investment from Carlyle allows Fermata Energy to make EVs more affordable, help fortify the electric grid, and create positive climate action.”

Strategic partnerships with NineDot and Fermata Energy further Carlyle’s growth in renewable and sustainable energy investing, which includes a focus on investments in renewable power generation, energy storage solutions, distributed energy, transportation electrification, and supply chain de-carbonization.

About Carlyle

Carlyle (NASDAQ: CG) is a global investment firm with deep industry expertise that deploys private capital across three business segments: Global Private Equity, Global Credit and Global Investment Solutions. With $293 billion of assets under management as of September 30, 2021, Carlyle’s purpose is to invest wisely and create value on behalf of its investors, portfolio companies and the communities in which we live and invest. Carlyle employs more than 1,800 people in 26 offices across five continents. Further information is available at www.carlyle.com. Follow Carlyle on Twitter @OneCarlyle.

Media Contact:

Brittany Berliner
(212) 813-4839
brittany.berliner@carlyle.com

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Maritime technology company Seaber.io to secure new growth funding

Seaber.io, the Finnish maritime technology company has raised EUR 1.5 million from Counterview Capital, Lifeline Ventures and Tesi to further develop the business.

Seaber is dedicated to reducing the environmental impact, inefficiencies and costs of bulk and break bulk shipping. Seaber’s cloud-based schedule planning, optimisation and communication solution helps charterers and shipowners to reduce emissions by improving asset utilisation.

“Seaber is set to modernize a traditional industry and bring new digital capabilities to maritime operators, driving significant environmental impact. As such it is a great fit with our Venture Bridge investment program. We are delighted to join a high-caliber investment syndicate supporting the company’s growth ambitions,” comments Juha Lehtola, Director of Tesi’s Venture Capital team.

Read more:

Press release by Seaber.io 21.12.2021

Additional information:

Juha Lehtola, Director, Venture Capital, Tesi
+358 400 647 671
juha.lehtola@tesi.fi

 

Tesi (Finnish Industry Investment Ltd) is a state-owned investment company that wants to raise Finland to the front ranks of transformative economic growth by investing in funds and directly in companies. We invest profitably and responsibly, hand-in-hand with co-investors, to create the world’s new success stories. Our investments under management total 2.1 billion euros. www.tesi.fi @TesiFII

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Ratos-owned Speed Group acquires Dream Logistics’ 4PL operations

Ratos

The logistics and staffing company Speed Group, which is 70% owned by Ratos AB, has signed an agreement with Dream Logistics to acquire shares in the company’s subsidiary for transport management services, known as fourth-party logistics (4PL).

The company is based in Mölndal, Sweden and is expected to have sales of SEK 100m for 2022, with an EBITA margin of approximately 3%, which is in line with other 4PL providers. The agreement signed by Speed Group is for the acquisition of 80% of the shares in the company. The company’s Managing Director, Fredrik Krysén, will continue to own the remaining 20% of the shares.

 

“This acquisition is strategically important for Speed Group, since it helps expand the existing offering to include transport management services. This will strengthen the company’s position in both the short and long term. As an owner, we’re pleased with Speed Group’s positive development coming in the wake of the constantly growing demand for the company’s services,” says Christian Johansson Gebauer, Chairman of Speed Group and President Business Area Construction and Services, Ratos.

 

“Dream Logistics’ 4PL operations, led by Managing Director Fredrik Krysén, are a perfect complement to Speed Group’s service offering. The company’s expertise in logistics consulting, transport management and implementing effective and cost-efficient transport solutions means that we provide our customers with a more holistic approach in terms of sustainable, effective and complete logistics solutions,” says Mats Johnson, CEO of Speed Group.

 

 

For further information
Christian Johansson Gebauer
Chairman of the Board of Speed Group and President Business Area Construction and Services, Ratos
+46 8 700 17 00
Mats Johnson
CEO, Speed Group
+46 73 367 75 45

 

 

About Speed Group
Speed Group is a corporate group based in Borås, Sweden that offers innovative and sustainable solutions to complex logistics and staffing challenges. The company is one of the Nordic region’s leading third-party logistics (3PL) providers, with effective automation solutions and nearly 200,000 square metres of warehouse space in Borås, Gothenburg and Stockholm. At 30 September, rolling 12-month sales for Speed Group amounted to SEK 945m and the EBITA margin was 11%.

 

About Ratos
Ratos is a business group consisting of 13 companies divided into three business areas: Construction & Services, Consumer and Industry. In total 2020, the companies have approximately SEK 36 billion in sales. Our business concept is to develop companies headquartered in the Nordics that are or can become market leaders. We enable independent companies to excel by being part of something larger. People, leadership, culture and values are key focus areas for Ratos. Everything we do is based on Ratos’s core values: Simplicity, Speed in Execution and It’s All About People.

 

 


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Audax Private Equity Completes the Sale of MNX Global Logistics to Quad-C Management

Audax Group

Audax Private Equity (“Audax”) today announced that it has completed the sale of MNX Global Logistics (“MNX” or the “Company”), an industry leader in time-critical logistics and managed transportation services, to Quad-C Management (“Quad-C”). Terms of the transaction were not disclosed.

MNX, headquartered in Long Beach, California, with offices in Singapore, Amsterdam, and Melbourne, is an industry leader in time-critical logistics and managed transportation services serving the biopharmaceutical, life sciences, high tech, medical device, aviation, entertainment, government, and financial industries. MNX’s same-day services support the distribution of surgical kits, lifesaving medical treatments, and critical service-parts, and help rescue grounded aircraft through its Aircraft-On-Ground precision logistics services. MNX serves a diverse base of over 1,500 global clients in 190 countries and territories through its Next Flight Out (“NFO”), Air Charter, Expedited Ground, Forward Stocking, and Managed Transportation solutions.

Since Audax’ investment in 2018, MNX has undergone a period of rapid growth and transformation, including expanding its global footprint and solidifying its presence in healthcare and aviation end-markets. The acquisitions of both the Express Division of Network Global Logistics and Global First supported MNX’s global growth plan and commitment to continuously increase the capabilities that its customers demand.

David Wong, Managing Director at Audax, stated, “We are proud of all that has been accomplished during our partnership with MNX. John and the entire management team have done an extraordinary job of driving improvements and building a leading time critical logistics provider through organic growth, acquisitions, operations, and commercial synergies. We wish the best to MNX as it begins its next chapter.”

“Over the past three and a half years, Audax has proven to be an incredible partner,” said John Labrie, President and CEO of MNX. “Audax was instrumental in our customer growth and innovation in solution offerings, supporting our team in its mission to be a world leader in time-critical transportation services. We thank David and the Audax team for their support in helping us continue to deliver dependable, customized solutions, and we look forward to what the future holds for MNX.”

Jefferies and J.P. Morgan served as financial advisors and Kirkland & Ellis served as legal advisor to Audax and the Company.

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