IK Investment Partners books 2.3x return on Minimax

European private equity firm IK Investment Partners is selling Minimax Viking Group, a fire protection systems manufacturer, to Kirkbi A/S and Intermediate Capital Group. Terms of the deal were not disclosed. 

The estimated value of the transaction is €1.3 billion, or a 2.3x return according to a source familiar with the matter.  ICG supported Kikbi, the Groos family and the management team during the acquisition, and will help shift ownership of the company to the consortium.

ICG says it plans to support the company under its new ownership and further international expansion.

“We have gotten to know Kirkbi and ICG well over the process, and we think this will be a perfect fit for all of the parties,” Anders Petersson, a partner at IK tells Private Equity International. 

The deal comes from IK’s fourth fund, which closed in 2004. Two companies – a healthcare company and components company, are the remaining entities before the fund is fully realized. Return on that fund so far, is 2.4x.

Minimax was up for sale for some time before finding a buyer. “It's been a long process, but we've seen the most activity in the past few months which got us here,” Petersson adds.

Minimax was established in 2009 following the merger of Minimax and Viking Group under IK’s ownership. Minimax and Viking were fire protection leaders in the US and Germany – the merger created a single, global company.  Since 2009, the company has continued its global expansion moving throughout Europe, the US, and into Asia.

“We are seeing strong investing momentum so far this year. The quality of investment opportunities continues to impress us. This is a transaction for ICG Europe Fund V,” Benoit Durteste, head of European mezzanine at ICG said.

IK Investment Partners’ latest fund – IK VII closed in October 2013 on approximately €1.4 billion, according to Private Equity International’s research and analytics division.  That fund will make control investments in medium-sized businesses in Northern Continental Europe. So far IK has made four investments through the fund, putting it at between 20-30 percent invested, Petersson said.