Funds advised by London-headquartered BC Partners have agreed to buy Dometic, a Swedish manufacturer of refrigeration and recreational equipment, from Nordic buyout firm EQT in a transaction valued at approximately SEK10.1 billion (€1.1 billion; $1.4 billion).
A source close to the transaction confirmed that BC Partners will pay SEK6.4 billion for Dometic’s 24.93 million shares and will assume approximately SEK3.7 billion of debt.
The source confirmed that figures cited in Swedish newspapers citing a return of between two and three times EQT’s original investment were “broadly correct”.
The source also said that BC’s offer represented a 35 percent premium to the planned IPO price of the company, which was aborted in December 2003. BC Partners invested from its seventh buyout fund.
EQT completed the acquisition of Dometic from white goods manufacturer Electrolux AB in January 2002, investing from the €2 billion EQT III fund. The firm planned to float the company in an SEK4.3 billion IPO in December 2003, but the deal was pulled due to lack of investor appetite.
The disposal was led for EQT by partner Håkan Johansson. London-based partner Simon Palley led the BC Partners team. Michael Wigge of Swedish law firm Vinge advised EQT, while Alistair Dickson of UK law firm Dickson Minto advised BC Partners.
The Dometic transaction represents a role-reversal from a transaction two months ago in which BC Partners sold Finnish bathroom products manufacturer Sanitec International to EQT for an undisclosed sum.
BC Partners last week reportedly held a first close on €5 billion on its latest, eighth buyout fund. The fund is expected to close in the next few weeks and will reportedly have a final target of €5.5 billion.
EQT is also in the process of putting its latest €2.5 billion fund to work. Two weeks ago the firm, along with Goldman Sachs Capital Partners, offered €3 billion for Danish facility services company ISS.