CapMan Plc Stock Exchange Release – 16 December 2014 at 6.00 p.m. EET
Significant carried interest income from the Ljunghäll exit – CapMan specifies its result estimate for 2014
CapMan specifies its estimate of the operating profit and earnings per share for 2014 and estimates the operating profit to be EUR 6–7 million (EUR 3.3 million in 2013) and the earnings per share to be 3–4 cents (-1.2 cents in 2013). The estimate is affected by the following factors:
Funds managed by CapMan have sold Metallfabriken Ljunghäll AB (“Ljunghäll”) to Gnutti Carlo, a global supplier to the automotive industry. As a result of the transaction, CapMan Group receives over EUR 6 million of carried interest income from the exiting funds. The transaction contributes over EUR 7 million in cash flow to CapMan Group including returns from CapMan’s own fund investments.
Based on preliminary data, the fair value development of CapMan’s own fund investments towards the end of the year is estimated to be negative.
The specification of the operating profit and earnings per share estimate is in line with CapMan’s previous outlook estimate. Previously the company estimated its earnings per share to improve significantly from the level achieved in 2013 primarily due to increasing operating profit.
“As a result of the Ljunghäll exit, the Finnmezzanine III A, CapMan Equity VII A and CapMan Equity Sweden KB funds transfer to carry and CapMan receives carried interest income from several funds. We are very satisfied to have achieved our target in this regard,” says Heikki Westerlund, CEO of CapMan.
Funds managed by CapMan invested in Ljunghäll in 2003. Today the company is a leading European manufacturer of technically advanced aluminium die-cast products. Ljunghäll’s production facilities are located in Södra Vi in Sweden and Caslav in Czech Republic and main customers include Volvo AB, Volvo Cars Corporation, Scania, Daimler and Ericsson. Ljunghäll’s turnover is approx. EUR 120 million and it employs around 800 people. Funds managed by CapMan owned approx. 68% of Ljunghäll’s shares before the transaction.
“We are very pleased with the development of Ljunghäll over these past few years. Despite the challenges in the automotive industry after the financial crisis, the company has now completed its turn-around and the outlook is strong. For Ljunghäll’s future development, it is important to have manufacturing presence in Asia. We believe that with a new owner with global presence, the company will continue to develop favourably,” comments Markus Sjöholm, Senior Partner and Head of CapMan Buyout.
For more information, please contact:
Markus Sjöholm, Head of CapMan Buyout, Senior Partner, tel. +358 40 508 0121
Heikki Westerlund, CEO, CapMan Plc, tel. + 358 50 559 6580
NASDAQ OMX Helsinki
CapMan Buyout is the largest mid-market private equity team in the Nordic region, with 15 investment professionals in Finland and Sweden and 25 years of experience. The team has made approx. 80 investments and approx. 60 exits and its tenth fund CapMan Buyout X is currently in active investment phase.
CapMan Buyout is part of CapMan Group, a leading private equity firms in the Nordic countries and Russia, with assets under management of 3.2 billion. CapMan has five key investment partnerships – CapMan Buyout, CapMan Real Estate, CapMan Russia, CapMan Credit and CapMan Public Market – each of which has its own dedicated investment team and funds. Altogether, CapMan employs approx. 100 people in Helsinki, Stockholm, Moscow, Luxembourg and London.
Founded in 1917, Metallfabriken Ljunghäll specialises in development, design, production and sales of technically advanced high pressure aluminium die-casting. The company’s primary customers operate in car, heavy vehicle and telecom industries. It is the leading player in the Nordic countries with modern production facilities in Sweden and the Czech Republic.