Herkules Capital, a Norwegian firm, has agreed to buy a majority stake in Elektroimportøren, a wholesaler and retailer of electrical equipment in Norway, according to a statement.
Financial details of the transaction, which is expected to close in March, were undisclosed. Herkules did not respond to a request for comment at press time.
Elektroimportøren, which was created in 1994, has three distribution channels: a large store located at Alnabru in Oslo, plus an online store and a customer service centre. Last year, the company’s sales were approximately NOK 166 million (€20 million, $28 million) and it had an EBITDA of NOK 32 million.
Herkules made the investment using its Fund IV. That vehicle officially came to market in January last year targeting NOK 6 billion (€760 million, $990 million). Last summer, several sources told PEI the firm was nearing a first close. It is unclear whether the firm has held a final close yet.
The investment in Elektroimportøren is the second investment from Herkules IV. Last month, the firm agreed to acquire a majority stake in Didriksons, a Sweden's clothing business.
Herkules is currently managing three other funds. Fund I, a NOK 2 billion vehicle from 2004, had a return multiple of 7.2x, and an internal rate of return of 102 percent, PEI reported earlier. Herkules II, a
NOK 4.25 billion 2006-vintage generated a return of 1.4x. Herkules III, a 6 billion NOK, 2008 vintage that is nearly fully invested, has so far generated a 1.3x return, a source told PEI last July.
Herkules typically invests in energy and oil services, health care, consumer goods, retail, services and technology and telecom and media in Norway.