IK Investment Partners has made its first investment since holding a final close on its new fund, buying Swedish traffic control business Ramudden.
Financial terms were not disclosed, but IK said in a statement that the company's revenues last year were SEK 239 million ($36.6 million; €26.6 million). The firm is understood to have taken a 70 percent stake in the business.
Ramudden, which was founded in Sweden in 2005, provides temporary traffic signs and barriers, as well as traffic surveillance and road maintenance services. IK said that it had been impressed by the company's “strong track record, the quality of its management and organisation, and [its] entrepreneurial culture”.
Ramudden currently operates in Sweden, Norway and Finland. It is understood that IK hopes to establish it as a regional champion before potentially looking to expand its business into other European countries.
The deal remains subject to regulatory approval.
PEI revealed in October that IK had held a final close on €1.4 billion for its seventh fund, its first since Christopher Masek and Detlef Dinsel took over as managing partners from Björn Savén in 2010. The fund had already completed three deals in the months preceding the close: fuel management company VPS, survival suit maker Hansen Protection and energy services company Ampelmann.
At the time, Mads Ryum Larsen, partner and head of IR, said the average equity cheque on these deals had been “around the €80 million mark”, meaning the fund was already about 20 percent deployed. The firm expects to do around 15 deals from Fund VII.