EQT sells remaining stake in Finnish paper business

Following the sale, EQT III is almost fully realised

 Swedish upper mid-market private equity firm EQT has sold its remaining 12 percent stake in Finnish paper business Munksjö Oyj, according to a statement from the firm.

The firm, which invested in the company using capital from EQT III, a 2001-vintage €2 billion vehicle, and its 2003-vintage, €189 million EQT Expansion Capital I, sold 6,136,644 shares at an undisclosed price. EQT partially exited the company in May 2014, divesting an 11.8 percent stake.

EQT declined to comment on the transaction.

Munksjö Oyj was listed on the Helsinki Stock Exchange in June 2013, according to EQT’s website. At time of writing shares were up 2.35 percent, trading at €7.83 per share, giving the company a market capitalisation of just under €400 million.

Munksjö Oyj has net sales of around €1.2 billion, employs 3,000 and operates 12 production facilities in Europe, China and Brazil, according to EQT.

The firm told PEI in a recent interview that the average gross money multiple on sold deals from EQT’s buyout activities over the last 20 years is 3x.

It is understood that EQT made back its original investment through the sale.

Following the sale, EQT III is almost fully realised, with just a small holding in Danish outsourcing company ISS remaining. EQT invested in ISS using capital from both EQT III and EQT IV, a 2004-vintage €2.5 billion vehicle.

Yesterday EQT III and EQT IV, along with funds advised by Goldman Sachs, sold 25 million shares in ISS at a price of DKK 162 (€21.77; $26.82) per share, valuing the entire stake at DKK 4.05 billion (€544 million; $670 million). Following the sale, EQT’s funds and the Goldman funds hold a combined stake of 19.3 percent.

Alongside ISS, there are two portfolio companies left in EQT IV, including Sanitec, for which a trade buyer recently put in an offer. That company is likely to be sold before year end, EQT told PEI.

Look out for our Privately Speaking with EQT in the upcoming issue of Private Equity International