CapMan Plc Stock Exchange Release – 15 January 2014 at 08:05 a.m. EET
CapMan sells Cederroth to Orkla
Funds managed by CapMan have agreed to sell their ownership in Cederroth Intressenter AB (“Cederroth”) to Orkla Home & Personal, which is part of the Norwegian conglomerate Orkla ASA. The exit does not have a material impact on CapMan’s result for 2015, as the positive change in the fair value of CapMan’s own fund investment has been booked in CapMan’s result already during the investment period. The transaction contributes some EUR 8 million to CapMan Group’s 2015 cash flow at the closing of the transaction. The closing is subject to the approval of the relevant competition authorities and it is expected to be completed no later than within Q3 2015.
Funds managed by CapMan invested in Cederroth in 2008. Cederroth manufactures and distributes a wide range of products within the personal care, healthcare, wound care, household and first aid segments. The company has a roduct portfolio of well-established brands such as LdB, Bliw, HTH, Salvequick, Samarin and Grumme. Cederroth operates in Sweden, Finland, Denmark, Norway, Poland and Spain. The company employs 850 people and achieved a turnover of approx. SEK 1,984 million in 2013.
“We have implemented several strategic initiatives during our ownership period, including optimisation of the sales operations, development of the wound care division and a strategic consolidation of the manufacturing foot print. Cederroth is now in an excellent position to continue its successful growth as part of a bigger group,” comments Göran Barsby, Senior Partner at CapMan Buyout and responsible for the investment.
“During CapMan’s ownership, Cederroth has grown both organically and through acquisitions and many important operational improvements have been made. By merging our operations with Orkla Home & Personal we are able to realise synergies and augment our overall competitiveness in local markets where there is significant international competition,” comments Mikael Nordin, CEO of Cederroth.
Funds managed by CapMan own approx. 70% of Cederroth’s shares. The majority of the investment in Cederroth was made from the CapMan Buyout VIII fund, in which CapMan Plc is a substantial investor. The fund’s impact on CapMan’s result is based on the fund’s fair value development and possible carried interest income, which depend on the development of the four remaining portfolio companies.
For further information, please contact:
Göran Barsby, Senior Partner, CapMan Buyout, tel. +46 734 408 487
Mikael Nordin, CEO, Cederroth International AB., tel. +46 706 825 447
Niko Haavisto, CFO, CapMan Plc, tel. +358 50 465 4125 (CapMan financials)
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 1890, Cederroth is a manufacturer and distributor of products in the personal care, healthcare, wound care, household and first aid sectors. In each product category, the company has a number of successful brands with strong positions in highly competitive markets. Several of our products are manufactured at our own plants in Sweden, Denmark, Poland and Spain. Cederroth has approximately 850 employees and Europe is our primary market. In addition to subsidiaries in six countries, we are represented in many other countries via distributors.
Orkla is a leading supplier of branded consumer goods and concept solutions to the grocery, out-of-home and bakery markets in the Nordics, the Baltics and selected markets in Central Europe, Russia and India. Orkla is listed on the Oslo Stock Exchange and has its head office in Oslo. In 2013, the Group had a turnover of NOK 33 billion, and around 17,000 employees at year-end. Orkla Home & Personal today comprises five branded consumer goods businesses, which primarily serve the Nordic region as their home market.