IK buys automotive and solar components manufacturer

European mid-market firm Industri Kapital has made its second acquisition of the year.

Industri Kapital has bought automotive and solar energy components business Flabeg for an undisclosed sum.

The company has two divisions, providing mirrors for the automotive industry as well as for the solar industry.

Detlef Dinsel, a partner at Industri Kapital, said: “It was attractive because of its growth prospects in Asia on the automotive side and its global role in the solar industry.”

The company’s solar business produces large-scale concentrated solar power plants for the generation of electricity.  Concentrated solar power uses mirrors to generate high temperature heat and steam, which is converted to electricity through a conventional steam or gas turbine.

Founded in 1882, Flabeg has 10 global production facilities across Europe, the Americas and Asia. For the financial year ending March 2008, Flabeg expects to have sales of €150 million.

The transaction is subject to approval by competition authorities.

The business is the third acquisition by Industri Kapital in the last year and its second in 2008 following the buyouts of Etanco, a building products business, in February, and Schenck Process, a manufacturer of industry processing machines. During this time it has invested approximately €340 million ($534.1 million).

Industri Kapital has been far busier selling, raising €1.4 billion across 6 exits in the last year, including the sale of Prevesta, a Swedish residential housebuilder, to Norwegian trade rival Block Watne for SKr1.9 billion (€204 million), making a more than ten times return.

It closed its latest fund on €1.675 billion in October last year, almost double the size of its previous fund.