2016

FSN CAPITAL PARTNERS CLOSES NEW SEK 9.62 BILLION (€1.0 BILLION) NORDIC MID-MARKET BUYOUT FUND

FSN Capital Partners (“FSN”), a pan-Nordic mid-market private equity advisor, announces the final closing of FSN Capital V, which was oversubscibed at its hard cap. The Fund received strong support from existing and new investors, with total commitments of SEK 9.62bn (€1.0 billion).

fsn-logo_png FSN Capital V held its final close on December 16th at its hard cap of SEK 9.62 billion (€1.0 billion), exceeding the SEK 8.5 billion (€870 million) target. The prior fund advised by FSN, FSN Capital IV, closed in 2013 at SEK 5.42 billion (€624 million).

The Fund’s investors comprise a well-diversified group including public and private pension funds, endowments, sovereign wealth funds, insurance companies, government agencies, asset managers, banks and funds of funds. FSN has also significantly broadened its international investor base, with new LPs secured from Asia, the Middle East and the United States. 29% of the total capital raised for FSN Capital V came from LPs based in North America, 13% from Asia and the Middle East, and 34% from Europe excluding the Nordic region. The Fund also attracted strong support from the Nordic LP community, with leading LPs from all four Nordic markets accounting for the remaining capital raised.

“We are delighted with the strong support we have received from existing LPs and are privileged to welcome a number of leading, blue chip investors from around the globe as new limited partners”, said Frode Strand-Nielsen, Managing Partner of FSN.

FSN Capital V will continue FSN’s proven investment strategy of targeting control buyout investments of Nordic mid-sized growth-oriented companies operating in Sweden, Denmark, Norway and Finland where FSN believes it can generate long-term alpha returns for the investors. It will target companies with enterprise values typically between SEK 500 million and SEK 3 billion (approximately €50 million to €300 million) and operating in a broad range of industries and markets.

FSN will continue its strong focus on integrating sustainable and responsible investment practices into the investments.

“FSN Capital V is positioned in an attractive segment of the market as one of the largest middle-market focused funds in the Nordic region” said Peter Möller, Partner of FSN. Thomas Broe-Andersen, Partner of FSN, added “we continue to see a large number of attractive investment opportunities and are confident of delivering strong returns to the investors.”

LOS GROBO SELLS 75% OF ITS EQUITY TO THE FUND VICTORIA CAPITAL

After a year of stormy negotiations, when they decided to sign the agreement at exactly 3am, the printer failed. What seemed impossible, happened: they run out of toner. The transaction that changed the history of Los Grobo Group, one of the main agribusiness players, was finalized hours later. In this context, Victoria Capital Partners makes a capital injection of US$ 100 million into the Company. Furthermore, for an undisclosed amount, it buys 75% of the Company which has annual revenues of US$ 550 million, 700 employees, 50,000 hectares of crops, ventured into agrochemicals with Agrofina, leads the precision agriculture with Frontec in association with INVAP, produces seeds and even offers financial services through a mutual credit guarantee company.

Victoria Capital acquires the stock that was still owned by the Brazilian Vinci group and by Gabriela and Andrea Grobocopatel. Gustavo and his other sister Matilde remain as shareholders. Grobocopatel will continue to be President and Horacio Busanello, CEO. “The entire team stays”, Grobocopatel assured Clarin.

What’s new about this multi-million dollar transaction, is the type of investors that Victoria Capital is partnering with, the IFC, the investment vehicle of the World Bank, the Dutch bank FMO and the University of Texas which invest in Argentina for the first time.

Victoria Capital, on the other hand, has been with us for decades. This fund, which is a successor of the well-known DLJ, made its first investment with the purchase of Peñaflor, the powerful wine conglomerate, is a shareholder of Zucamor (cardboard containers) and the seeds producer Satus Ager. They split from Credit Suisse in 2011, discarded the DLJ name and adopted Victoria, in honor of the only vessel that survived the Magellan expedition. With offices in New York, Sao Paulo, Bogotá and Buenos Aires, Victoria has investments in the Colombian construction company Corona, the publishing company Santillana in Spain and Arcos Dorados, the McDonald’s franchise. Itau bank acted as financial advisor in this transaction.

grupo-los-grobo – Aren’t you afraid of an unfavorable market scenario as a consequence of Trump’s triumph?

-If there is a competitive and sustainable industry in Argentina, it is the Agriculture. We are a financial investor group with no time urgency. We have many years ahead of us, say Carlos García and Santiago Cotter, partners at Victoria.

–Why do you sell part of the group?, Grobocopatel was inquired.

-We try to take advantage of the current political and economic scenario. We now count with a great global platform with top investors. Nowadays, we need to have access to knowledge and capital. We cannot grow without access to capital. We want our company to transcend the family and Argentina.

“We will double in size in a short period of time. Cost of money is part of being competitive. A new whole scenario opens up”, added Busanello.

Going forward, they will strengthen Los Grobo as a leader in services that integrate the producer’s needs in one place.

One of the first new segments they focus on at this stage is legumes, such as yellow pea, Canadian lentil and chickpea, that they have already started to sow. “It can be a boom very similar to that of soybean, with India increasingly demanding this type of products”, Grobocopatel added enthusiastically.

LIVINGBRIDGE SERVES UP FIRST DEAL FROM NEW FUND WITH ACQUISITION OF RHUBARB

Livingbridge, the mid-market private equity firm, today announces its investment in rhubarb, the premium food and beverage operator. The deal is the first investment from its new £660m fund, Livingbridge 6.

Originally established in 1996 as an events business, rhubarb expanded its rhubarb activities in 2003 to include the operation of lease and concession contracts at iconic, high footfall locations, initially by providing high-end catering at Ascot Racecourse.

Today, the company operates long term contracts at venues including the Sky Garden at the ‘Walkie Talkie’ building in London, the Royal Albert Hall and events at the Goodwood Estate. It also provides bespoke catering solutions at around 600 events per year for a broad range of clients, from high profile charity galas for 2,000 guests to small, intimate dinners in country venues.

With offices in London and Surrey, the firm now employs 248 full time members of staff alongside over 900 temporary staff.

rhubarb is the first investment from the Livingbridge 6 fund, which completed fundraising in September 2016 and targets companies with enterprise values typically between £20m and £125m. The investment in rhubarb is also Livingbridge’s third in the food and drink sector having invested in Pho, the Vietnamese fast casual restaurant in 2012, and Bistrot Pierre, the regional French bistrot group in 2015.

The investment from Livingbridge, will help rhubarb’s continued growth across the UK and internationally with the overall aim of doubling in size in the next four years. In addition, Richard Prosser, who has private equity expertise within the global leisure, travel and tourism industries, will be joining as Chairman on completion of the deal.

PB Jacobse, CEO of rhubarb, said:

“We are very excited to be working with Livingbridge on the next stage of our development, particularly in light of their knowledge of the food and beverage market through their existing investments. We are ideally positioned to benefit from positive market trends and current consumer tastes and, with a good level of visibility over our existing contracts, as well as a strong pipeline of new growth opportunities, we are confident of building on the strong momentum we have generated to date.”

Benoit Broch, Director at Livingbridge said:

“rhubarb’s management team have done a fantastic job in growing the business over recent years, securing a number of high profile contracts and creating a premium, differentiated brand that is highly valued by consumers and businesses alike. The company have long-term contracts at some fantastic locations and a strong pipeline of future growth opportunities and we are very much looking forward to helping them expand their offering both throughout the UK and overseas.”

LIVINGBRIDGE SIGNS UP TO £23 MILLION EXCLAIMER INVESTMENT

Mid-market private equity firm Livingbridge has invested £23 million in Exclaimer, the largest global provider of email signature software. The investment is the last primary investment from Livingbridge 5, the firm’s £360m fund raised in 2012.

exclaimer

Exclaimer, headquartered in Farnborough, Hampshire, was founded in 2000 by business partners Andrew Millington, Gary Levell and Chris Crawshay and today provides software to over 25,000 customers in more than 100 countries including blue-chip firms such as the BBC, Audi, Sony and McDonalds.

The Group is an accredited Microsoft Gold partner and its products support the full array of Microsoft‘s email solutions including MS Office 365, Microsoft’s rapidly growing cloud deployed business platform. Exclaimer’s software gives users complete flexibility and control over email signatures and disclaimers, ensuring regulatory compliance whilst enabling consistent brand promotion and innovative marketing campaigns.

There are currently over one billion active business email mailboxes worldwide. Cloud mailboxes currently make up 40% of the total but this is forecast to rise to 70% by 2020. This transition, combined with the increasing necessity for Compliance and Marketing teams to own the email signature, represents an immediate opportunity for Exclaimer.

The investment is the 13th and final investment from the Livingbridge 5 fund which has included investments in Direct Ferries, Frank Recruitment and Metronet, although additional funds remain to finance growth strategies and M&A opportunities for existing investments.

The investment from Livingbridge in Exclaimer will see the business invest in expanding relationships with partners, add scale by broadening its suite of products and invest further in infrastructure and customer services to ensure Exclaimer capitalises on its market leading position.

The deal was led by Matthew Caffrey, Xavier Woodward and Mo Aneese. Exclaimer was advised by Jamie Hope, Emmet Keating and Mike Falzon from Catalyst Corporate Finance.

Commenting on the investment, Andrew Millington, Chief Executive Officer of Exclaimer said:
“In the last 16 years we have taken a very simple concept and turned it into a global success. The investment from Livingbridge will enable us to push on even further, adding scale and firepower to our business while still maintaining our entrepreneurial culture of innovation to ensure our customers continue to receive excellent product and services. We are delighted to be working with the Livingbridge team and I know I speak on behalf of the whole team when I say that we are incredibly excited about our future.”

Matthew Caffrey, Partner at Livingbridge said:
“Exclaimer is an impressive company with great technological focus which has demonstrated an ability to iterate their software to lead their market. Our experience of working with high growth tech businesses, combined with Exclaimer’s strong management team and award winning reputation, means that the business is extremely well placed to capture the opportunity that the rapid expansion of MS Office 365 brings.”

INNOVA CAPITAL SOLD ITS STAKE IN WIRTUALNA POLSKA

Innova Capital, the leading CEE private equity fund, sold its 27% stake in Wirtualna Polska Holding S.A. for PLN 50.00 per share.

In 2014 the Innova Capital fund financed the acquisition of Wirtualna Polska from Orange Polska and its merger with the o2 Group. The purpose of the PLN 375m transaction was to consolidate the e-market in Poland and introduce the group into the e-commerce market segment.

In just a dozen or so months the company underwent a dynamic integration process, strategy overhaul and rebranding. These initiatives gave an immediate boost to the financial performance: 2.5x increase in EBITDA and four-fold increase in market value. Fifteen months after Innova’s investment, Wirtualna Polska Holding became listed on the Warsaw Stock Exchange and the company’s present capitalisation is over PLN 1.5bn, with the share price rising by nearly 70% following the IPO. Thanks to the recent exiting the investment, Innova generated an internal rate of return (IRR) of over 60%.

“Our investment in Wirtualna Polska was very successful: in a relatively short time we have created a leader of the Polish e-market, in cooperation with the excellent team of managers. The new strategy of development and pursuing it consistently has also translated to an above-average rate of return on the investment. This is an excellent example of a Platform+ investment, assuming acquisition of two companies and consolidating them on purchase, leveraging the income and cost synergies effectively and implementing a new management structure,” comments Magdalena Magnuszewska, Partner at Innova Capital.

“The Innova Capital has undoubtedly placed much confidence in us and financed ambitious plans of the Group. I can’t remember any other transaction where a four times smaller company acquires its bigger rival. Then, in short of two years, it consolidates the market by acquiring 14 entities, successfully enters the stock exchange and moves nearly a half of its revenues from the market it has been active on for 20 years to entirely new areas. All this while constantly improving the results and increasing its market value by a few times. This is only possible in Poland. In Wirtualna Polska,” says Jacek Świderski, President of the Board of Wirtualna Polska Holding S.A.

Jacek Świderski, Michał Brański and Krzysztof Sierota, entrepreneurs with a majority stake in Wirtualna Polska, were involved in the repurchase of shares from Innova Capital and now have over 55% votes at the General Meeting of Shareholders. All remaining shares were sold to public institutional investors in the accelerated book building (ABB) process, which was closed today.

About WP Group

The Group owns one of Poland’s two most popular horizontal internet portals called Wirtualna Polska. It also runs the o2 horizontal portal and numerous specialist vertical portals, including in particular a business portal: Money.pl; a sports portal, e.g. WP SportoweFakty, a new technology portal: e.g. Dobreprogramy; entertainment portals: e.g. Pudelek and WP Gwiazdy; health and parenting portals: abcZdrowie.pl and Parenting.pl; and internet radio stations: OpenFM and PolskaStacja. In addition, the Group runs advertising business offering lead generation for internet stores, mostly through portals that aggregate the offers of internet stores (marketplace), in particular Domodi and Allani in fashion, Homebook in the home and interior decoration category, Money.pl and Finansowysupermarket.pl in financial services and wakacje.pl in tourism and recreation. The Group offers its users the possibility of using e-mail free of charge; it also conducts business on the Polish online advertising market offering its clients an extensive range of advertising products: modern display, including video advertising, advertisements distributed by e-mail, advertising for mobile devices and advertising based on a performance model. On 2 December the WP Group launches its latest project, WP Television, available from the 8th landline television multiplex and from SG WP.

LIVINGBRIDGE SELL A MAJORITY OF ITS STAKE IN MORTGAGE FINANCE SPECIALIST ENRA

Livingbridge today announces that it has reached an agreement to sell the majority of its stake in the ENRA Group, the specialist provider of mortgage finance, to Exponent Private Equity.

ENRA lends and brokers short term bridge mortgages as well as distributing specialist second charge and buy-to-let products. Livingbridge first invested in ENRA in 2014 and provided follow on investment to fund the acquisition of West One Loan limited. The business has enjoyed strong growth on the back of its bespoke manual underwriting process that allows it to offer a superior customer centric approach. ENRA is unique in both lending from its own balance sheet and placing loans with external investors via its West One platform, in addition to operating a leading master broker under the Enterprise brand.

Danny Waters, CEO of ENRA, said: “ENRA is well positioned to continue to offer innovative solutions to customers in a market that is evolving at a rapid pace. Over the last three years we have invested in infrastructure and people and it is very pleasing to see the return of that investment. The partnership with Livingbridge has been very rewarding and their support has allowed the business to grow five-fold in just 3 years.”

Shani Zindel of Livingbridge said: “We are very proud of our investment in ENRA. Danny and the team have done a fantastic job. The business has grown from a niche broker of loans to a leading provider of lending solutions – organically and through the acquisition of West One Loans. The investments made in people, IT, sales and marketing have yielded extremely impressive results – ENRA has grown successfully on every level. We are pleased to be able to continue as shareholders and look forward to the next stage of growth.”

CAPITON INVESTS IN NANO-ENGINEERING FIRM, RAITH

About the company

Raith is a leading global developer and manufacturer of nanofabrication systems and software used for printing and scanning nanostructures. Since 1980 Raith has been developing, manufacturing and distributing system solutions for R&D applications to analyze and develop microchip circuits and other nanostructures, for instance in the fields of biochemistry or cybersecurity. The company caters to a global customer base of leading universities, research labs and blue-chip technology companies. Raith has two production sites in Germany and the Netherlands, as well as three distribution units in the US, China and India. In addition, Raith’s regional sales managers are supported by local sales partners across 15 countries. Raith employs around 200 people worldwide, of which 120 are based at its headquarters in Dortmund, and generated sales of € 54 million in 2015.
raith Transaction summary

capiton acquires Raith from the equity capital partner HANNOVER Finanz, who supported the company’s growth since 2002, and will become the majority shareholder of Raith. Financing of the transaction is provided by capiton’s current investment vehicle, capiton V, and banks. capiton is planning to grow the business organically both via international and product expansion, leveraging Raith’s strong market position, as well as through targeted acquisitions, for which additional funds have been reserved in fund capiton V. The transaction remains subject to approval from competition authorities. Buyers and sellers have agreed not to disclose the financial terms of the transaction.

CITIC EXITS KING KOIL to ADVENT

PEHub
November 1, 2016
By Iris Dorbian

CITIC Capital Partners has sold King Koil China to Advent International. No financial terms were disclosed. BDA Partners provided financial advice to CITIC on the transaction. King Koil China is a maker and seller of mattresses in China.

PRESS RELEASE

(Shanghai, 01 November 2016) CITIC Capital Partners, the private equity arm of CITIC Capital Holdings Limited, is pleased to announce that its fund has completed the sale of its controlling stake of King Koil Shanghai Sleep System Co., Ltd (“King Koil China” or “the Company”) to Advent International. The investment was made through CITIC Capital China Partners II, L.P., its second China-focused buyout fund. Terms of the transaction were not disclosed. BDA Partners acted as exclusive financial advisor to CITIC Capital Partners.

Based in Shanghai, King Koil China is a manufacturer and retailer of premium mattresses in China and the exclusive licensee of several international mattress brands such as “King Koil”, “Aireloom”, and “Life Balance” in China. King Koil, a leading US brand founded in 1898, is one of the best-known premium mattress brands globally and is well-recognized by Chinese professionals. The Company is also the leading player in supplying premium sleep products to luxury hotels in China.

CITIC Capital Partners acquired King Koil China in June 2014. Over the past two years, CITIC Capital Partners has focused on growing the Company’s business through expansion of its retail coverage, strengthening its brand recognition, streamlining operational systems and establishing stronger alliances with leading retailers and shopping mall developers by leveraging CITIC Capital’s resources. With the support of CITIC Capital Partners, King Koil China has successfully expanded its business in China market and further enhanced its industry leadership. King Koil China has recently established its first flagship store at a shopping mall in Shanghai and has been voted as the top luxury hotel supplier by frequent travellers.

Yichen ZHANG, Chairman and CEO of CITIC Capital Holdings Limited, said: “It has been our pleasure working with the management and other shareholders of King Koil China in the last two years. Under CITIC Capital Partners’ ownership, King Koil China has demonstrated robust growth and profitability, especially in the key hotel contract and retail sector markets. We believe King Koil will continue to see tremendous growth potential on the back of a solid foundation and the support and resources of the new partner.”

Stephen WANG, CEO and Co-founder of King Koil China said, “We would like to thank CITIC Capital Partners for its contribution to our business in the past and are delighted to welcome such an experienced and growth-oriented private equity firm as our new investment partner. The mattress market in China is large and fragmented, but growing.

With Advent’s support, we will continue to focus on our core competencies that drive growth and operational efficiency, allowing us to consolidate the market and further increase both our footprint and market share in the premium mattress segment.”

king-koil

About King Koil Shanghai Sleep System Co., Ltd.
Established in Shanghai in 2000, King Koil Shanghai Sleep System Co., Ltd. is a manufacturer and retailer of premium mattresses in China and is the exclusive licensee of several international mattress brands such as “King Koil”, “Aireloom”, and “Life Balance” in China. King Koil, a leading US brand founded in 1898, is one of the best-known premium mattress brands globally and has received many prestigious distinctions, including endorsements from the International Chiropractors Association (ICA) and the Foundation for Chiropractic Education and Research (FCER).

About CITIC Capital Holdings Limited
Founded in 2002, CITIC Capital Holdings Limited is an alternative investment management and advisory company. The firm manages over USD7.9 billion of capital from a diverse group of international institutional investors. Core businesses include Private Equity, Real Estate, Structured Investment & Finance, Asset Management and Venture. CITIC Capital currently employs over 200 staff members throughout its offices in Hong Kong, Shanghai, Beijing, Shenzhen, Tokyo and New York.

About CITIC Capital Partners
CITIC Capital Partners, the private equity arm of CITIC Capital Holdings Limited, operates in China, the United States and Japan, and currently manages USD3.6 billion of committed capital on behalf of over 60 international investors. CITIC Capital Partners’ funds invest globally and work with management teams to help companies realise their full potential.

CAPITON EXITS ZYTOSERVICE GROUP

About the company:

ZytoService is a leading pharmaceutical company that produces parenteral infusion solutions which are customised to individual patients’ needs. These solutions are primarily used in oncological treatment. The company operates state-of-the-art cleanroom laboratories at its principal site in Hamburg, where it focuses on the preparation of pharmaceutical products, tailored to individual patients. capiton invested in the company in August 2008 during a round of growth financing. The company has enjoyed significant growth in recent years, both organically and through acquisitions. Sales have more than quadrupled during the period of capiton’s investment.

zyto About the transaction:

As part of this transaction, which has now been signed and which is still subject to regulatory approvals, capiton is selling its shares in Zyto Service to IK Investment Partners. The parties to the transaction have agreed not to disclose financial details of the transaction. capiton was advised by Ferber (M&A), Clifford Chance (Legal) and Deloitte (Financial) with respect to this transaction.

LIVINGBRIDGE’S METRONET (UK) ACQUIRES M247 TO CREATE NATIONAL TELECOMMUNICATIONS PLATFORM

Metronet (UK), the UK’s fastest growing network services provider, backed by mid-market private equity firm Livingbridge, today announces its acquisition of M247, a leading internet infrastructure and hosting company, for £47.5m.

Following the acquisition of M247, Metronet (UK) will be able to offer a combined portfolio of connectivity and content services including wireless network services, datacentres and managed hosting solutions across the UK and Europe.

metronet

Livingbridge invested in Metronet (UK) in June 2014 as part of a £45m secondary buyout of the firm and the acquisition of M247 is the first step in a targeted buy and build strategy that aims to build a disruptive platform in the connectivity space with ‘last mile’ control, speeding up communications to end users, and a powerful transit network across Europe. The combined business will have EBITDA in excess of £12m, over 200 staff and three datacentres.

Established in 2003, Metronet (UK) operates the most advanced hybrid ISP network in the UK and, by combining a unique offering of wireless and wired technology, is able to offer connectivity solutions to corporates and SMEs that are typically implemented five times quicker than traditional fibre and copper based services.

Metronet (UK) currently employs 150 people across two sites in Manchester and works with over 2,500 businesses including Intu, Sofology and ao.com, delivering turnover of £21.5m in the financial year to 2016.

M247 was founded in 2000 by school friends Jonathan Buckle and Chris Byrd, initially as a web hosting services business before David Buckle, Jonathan Buckle’s father, decided to co-invest in the business to purchase a web hosting company named Open Hosting. Open Hosting was then incorporated into Jonathan Buckle and Chris Byrd’s existing business before being rebranded as M247 in 2003.

Today the business provides a wide range of solutions including web hosting, network and data security and 24/365 technical support. The firm operates from Manchester, UK and Bucharest, Romania with clients including On the Beach and Warburtons.

Matthew Caffrey, Partner at Livingbridge, said:

“This is a fantastic step forward for Metronet (UK) as it continues to expand its footprint across the UK and eventually into Europe. This acquisition is the start of a journey to build an international, multi-offering internet service provider and hosting business and we are delighted that M247 will be part of that process. Metronet (UK) has an exciting time ahead as it actively looks for similar acquisition opportunities and we look forward to seeing the business build on its success to date.”

Lee Perkins, Chief Executive at Metronet (UK), said:

“M247 is an excellent fit for us as it provides the scale and reach to build upon our existing momentum and the expertise and infrastructure to provide richer solutions to our combined customers. In addition to further acquisitions of similarly high quality businesses to M247, we are making significant investments in our systems and people to facilitate a smooth integration for our customers and to support further organic growth.”

David Buckle, Managing Director at M247, said:

“We have known the Metronet (UK) team for some time and feel they are a perfect fit for our business. They are the ideal home for M247 and we are extremely excited about what the future holds for our combined businesses.”