European private equity house CVC Capital Partners has launched a public to private takeover deal to acquire Danske Trælast, a Danish retailer and distributor of building materials.
CVC has agreed a price of DKr171 per share with Danske’s three largest shareholders, Codan, ATP and LD, who between them control almost 50 per cent of the company’s shares.
Codan, an insurance company owned by Royal & Sun Alliance, is the company's biggest shareholder with a 32.9 per cent stake. Arbejdsmarkedets Tillaegspension (ATP) and Loenmodtagernes Dyrtidsfond (LD), Denmark's largest and third-largest pension funds, also approved the offer.
The offer is at a 39 per cent premium to the closing share price before the announcement of talks about a possible takeover of the business and values the company at DKr4bn (E540m).
Danske Trælast Group is the largest retailer and distributor of building materials in the Nordic region with 7,000 employees, more than 200 outlets and an annual turnover of approximately DKr15bn.
CVC’s acquisition of Danske is the second private equity deal in the Danish home improvements market within the last month. In March, Advent International led a buyout of ILVA, a family-owned furniture retailer based in Denmark, in a deal that valued the business at E95m.
CVC is investing from its CVC European Equity Partners, which closed in 2001 on E4.65bn, making it one of Europe’s largest funds to date.