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CapMan and 3i funds exit Finndomo


CapMan funds Finnventure II and III and 3i fund Forenvia Venture I invested in Finndomo in 1997, when Rantasalmi Oy and Suomen Taloteollisuus Oy were merged. CapMan fund Finnventure V and 3i Group Plc invested in the company in 2001, when Finndomo and Swedish house manufacturer Hjältevadshus Produktion AB were merged. Finndomo’s business has developed well in recent years, and the company has achieved market leadership as the largest producer of single-family houses in the Nordic countries. The investment has been profitable for CapMan funds, of which Finnventure II and III funds are already generating carried interest. As a result of carried interest received from these funds, the impact of the exit on CapMan Plc’s result for 2005 is about EUR 5 million. Finnventure V Fund also moves closer to the point where it begins to generate carry following the exit.

“When we invested in Finndomo eight years ago our aim was to reorganise the company’s business and improve profitability, and to positively influence the development of the construction industry. These objectives have now been met and several different buyers have expressed interest in Finndomo. We believe that the new owners, who are capable of long-term profitable management and development of Finndomo, have the best possible interests in the company’s future,” says Markus Sjöholm, CapMan Partner and Chairman of the Board of Finndomo.

“Finndomo has grown to be the leading industrial manufacturer of single-family houses with the support of private equity investors and at the same time the company’s profitability has increased remarkably. We are very pleased that private persons have shown interest in buying Finnish businesses. The most recent exits have been from one private equity investor to another or to an industrial buyer, because the stock exchange listing markets have not yet fully recovered,” says Ere Kariola, CEO, 3i Finland.

Reijo Svanborg, Managing Director of Finndomo Group: “We are extremely pleased with the partnership with CapMan and 3i. Their positive contribution has enabled Finndomo to become a united and profitable company, which has grown into the largest Nordic producer of single-family houses and the benchmark of quality in Nordic living. This change of ownership secures the long-term development of Finndomo according to company strategy also in future. The operative management has long been committed to developing Finndomo, and is therefore best qualified to take responsibility for the company’s future challenges. The executive ownership will further increase management’s commitment to the company.”

In addition to the company’s operative management, the buyers of Finndomo include a group of Finnish and Swedish private investors such as Ilkka Brotherus, Curt Lindbom, Jussi Länsiö and Stig-Olof Simonsson.

In 2004 Finndomo’s turnover increased to EUR 157.7 million and profits to EUR 5.3 million. Finndomo’s major market areas are Finland and Sweden, which each contributes approximately half of the total turnover. In coming years the company aims to grow turnover to EUR 200 million and profit to EUR 10 million, through production standardisation, marketing, reorganisation on a Group level and delivery of comprehensive single-family house production and installation solutions to customers. There is also a substantial trend for growth potential in exports.

Press conference
A press conference will be held for the media and analysts today, 29 April 2005 at 12.00 p.m. at the address Restaurant Bank, Unioninkatu 20 (door at Unioninkatu 22). The following persons will be present at the press conference: CapMan Markus Sjöholm, Partner; Kalle Helander, Investment Manager, 3i, Reijo Svanborg, Managing Director, Finndomo, Mikko Rajamäki, CFO, Finndomo and Ilkka Brotherus.

Time: 29 April 2005 at 12.00 p.m.
Place: Restaurant Bank, Unioninkatu 20 (door at Unioninkatu 22)

For further information, please contact:
Markus Sjöholm, Partner, CapMan, tel. +358 9 6155 8312
Kalle Helander, 3i Finland, Investment Manager, tel. +358 40 504 3462
Reijo Svanborg, Managing Director, Finndomo Group, tel. +358 207 550 400

About the companies:

CapMan Group

CapMan is one of the leading private equity investors in the Nordic countries and specialises in middle market buyouts in various industry sectors, technology investments in the IT and communications sectors and investments in life science companies. The CapMan team comprises around 80 people in Helsinki, Stockholm, Copenhagen and Oslo. CapMan manages/advises Nordic funds with approx. EUR 1.4 billion in total capital. To date, the funds managed/advised by CapMan have invested in 141 companies in the Nordic countries and exited from 67 companies. The latest investments are made in Norwegian Cardinal Foods AS, Finnish Metso Drives Ltd, Swedish SciBase AB and Danish Anhydro Group. CapMan Plc is listed on the Main List of the Helsinki Stock Exchange.

3i Group Plc

3i is a FTSE100 company and world leader in private equity and venture capital. We focus on Buyouts, Growth Capital and Venture Capital and invest across Europe, in the United States and in Asia Pacific.

Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. It underpins the value that we deliver to our portfolio and to our shareholders.

3i’s investor relations website is

Finndomo Group

The Finndomo Group is the largest Nordic producer of industrially manufactured single-family houses, its main market area being Northern Europe. The company also delivers construction panels. Finndomo’s trademarks are Omatalo, Puutalo, Vaajatalot and Avainkoti in Finland and Hjältevadshus and Modulenthus in Sweden. The trademark Finndomo is used in public construction sales. Finndomo has a total of seven production plants in Finland and Sweden. The company’s net sales in 2004 were approx. EUR 158 million. The company has some 850 employees, of which about half are in Finland.