Altor seals €275m Dynapac buyout

Altor Equity Partners, the Nordic private equity firm, is set to complete its fourth investment with the €275m acquisition of Dynapac, a Swedish paving equipment business.

Dynapac, a Swedish-based paving equipment provider, has been acquired on a debt free basis by Altor Equity Partners in a deal worth approximately €275 million ($328 million). The final price will be based on the firm’s net asset value at the date the transaction completes.

Jaakko Kivinen, an investment director at Altor, told PrivateEquityOnline: “Dynapac has a very solid product, good know-how and a strong market position. It has attractive growth potential in China, Eastern Europe and the US and the possibility of further growth through new product introductions.”

Kivinen added that the deal represented the single largest investment made by Altor since it began investing its €650 million debut fund in mid-2003, which, according to Kivinen, is now more than 25 percent committed. He added that the Dynapac deal would incorporate debt finance from a Swedish bank, but that further details could not be disclosed at this stage.

Dynapac, which has been acquired from Finland’s Metso Corporation, is a global manufacturer of compaction and paving equipment. In 2003, the business posted net sales of €322 million and employed 1,800 people. Dynapac designs, manufactures and sells brand name rollers, pavers, planers and concrete and light compaction equipment and services. It has manufacturing plants in Sweden, Germany, France, Brazil and China.

Altor, which raised its fund in just four months, made previous investments in Lindorff, a Norwegian receivables management company; Contant, a Finnish debt collection agency; and Aco Hud, a Swedish cosmetics manufacturer. “We’re pleased with the pace of investment and we see increasing activity in the market at the moment,” said Kivinen. “Sellers are probably a bit more willing to pursue transactions than they have been for a while.”

The Altor 2003 Fund focuses on control investments in the middle market segment of the Nordic region, concentrating on opportunities where it can contribute to long-term value creation through operational improvements and growth initiatives.