IK acquires TCM through small-cap fund

The investment in the Scandinavian kitchen company is understood to be the firm’s third from its debut small-cap vehicle that is currently in market targeting €250m.

IK Investment Partner’s acquisition of Scandinavian kitchen manufacturer TCM Group is its third from its debut small-cap fund, which is currently in market, it is understood.

IK is acquiring the company that is headquartered in Holstebro in Denmark from Danish private equity firm Axcel, it said.

TCM, which has 70 stores in Denmark and Norway, expects to generate revenue of more than DKK 500 million ($73 million; €67 million) in 2015. It will accelerate its international expansion under new ownership, Axcel said.

IK Small-Cap Fund is expected to hold a close early next year. The fund, which will invest in lower-mid market companies, is targeting €250 million, according to PEI Research & Analytics. It will invest equity tickets of €10-30 million that fall outside the remit of its main buyout vehicle, as reported by Private Equity International.

The TCM acquisition follows an agreement this month for IK to acquire Belgian hygiene product maker CID Lines from Gilde Buy Out Partners for an undisclosed amount. The transaction was made through IK VII Fund, a €1.4 billion, 2013-vintage vehicle, which is now understood to be about 70 percent invested.

That followed, also this month, IK’s agreement to acquire Netherlands-based spreadable salad manufacturer Salad Signature from AAC Capital through IK VII Fund, as reported by PEI.

IK is a pan-European firm focused on investments in the Nordics, DACH region, France, and Benelux markets.