Capman moves into wind

The Nordic private equity firm has acquired Metso Drives, a mechanical equipment manufacturer that makes products including wind turbine gears.

Nordic private equity investor CapMan has acquired Metso Drives, a mechanical power transmission equipment subsidiary of technology company Metso Corporation, for a debt-free price of €98 million.
 
Metso Drives provides mechanical drives for the pulp and paper industries, as well as wind turbine gears. Jorma Eloranta, president and CEO of Metso Corporation, said in a statement that the sale was a strategic move aimed at focusing on the company's core activities and improving its subsidiary's prospects for growth. 'We realised that the biggest growth potential for Metso Drives is in the wind turbine sector and other sectors, which are not part of Metso's core businesses,' he said.
 
Orvo Siimesto, a senior advisor at CapMan, will become the company's chairman. Siimesto said in an interview that the firm had been drawn to the company by the strength of its technology and market potential. He said the firm was hoping to institute a more aggressive growth strategy now that the business had operational independence, and to grow the company both organically and through acquisitions.
 
CapMan is a Helsinki-headquartered private equity firm specialising in mid-market buyouts and investments in the IT, communications and life science sectors. It has offices in Stockholm, Copenhagen and Oslo, and manages approximately €1.3 billion in capital. B-shares in CapMan plc are listed on the main Helsinki Stock Exchange.