London-based IK Investment Partners has made its first acquisition from its latest fund, agreeing to acquire thermal validation solutions business Ellab for an undisclosed sum.
The acquisition follows a first close on IK VIII on €1.3 billion in the last week. The fund, which was launched in the spring, is targeting €1.6 billion and is expected to close before the end of the year, it is understood.
The Minnesota State Board of Investment has committed $150 million to the vehicle, according to PEI data.
Ellab supplies solutions for measuring, recording, monitoring and validating critical parameters of thermal processing, and sells its products in more than 65 countries. Its range of high-precision systems for temperature, pressure and humidity monitoring and validation based on either data loggers or thermocouple based wired instruments are used by the pharmaceutical and food industry and hospitals.
The company has around 110 employees, and total revenue for 2015 amounted to DKK 148 million (€20 million; $22 million), with an adjusted EBITDA margin of 39.2 percent.
IK’s previous fund held a final close on €1.4 billion in 2013, below its initial €1.7 billion target.
In March IK closed its debut small-cap vehicle on its €277 million hard-cap after a year on the road. Campbell Lutyens acted as placement agent for the fund, which counts SL Capital, Ardian and the European Investment Fund among its investors.
Last week IK agreed to sell Vemedia Group to a portfolio company held by fellow private equity house Charterhouse Capital Partners. IK acquired Vemedia, a producer and distributor of over the counter drugs, food supplements and medical devices, in December 2012 using capital from its IK 2007 Fund, which closed on €1.7 billion. Following the sale there are four unrealised businesses remaining in the portfolio.