Bridgepoint growth arm buys Swedish customs business

KGH Customs could give UK-based BDC a foothold in the fragmented customs services sector.

Bridgepoint Development Capital has agreed to buy KGH Customs from Nordic private equity firm Procuritas Capital Investment. Financial terms were not disclosed.

Headquartered in Gothenburg, Sweden, KGH provides customs services in Sweden and six other European countries, and also has partnerships with local providers in others. The company has doubled its revenues in the past six years, to around SEK 500 million ($79 million).

It is understood that Bridgepoint hopes to benefit from the increasing trend towards outsourcing to independent providers in customs services, which is happening as a result of the increasing regulatory complexity in the sector. This same complexity also acts as a barrier to entry, industry sources say.

Bridgepoint plans to continue KGH's development in its core Nordic markets, as well as expanding into new European territories. It will also consider acquisitions.

KGH was previously owned by Procuritas, which bought the company in 2007 with its Fund III. The transaction is expected to close in November. The existing management team will remain with the company.