IK sells remaining Oriflame stake for Skr610.5m

Industri Kapital, a pan-European mid-market firm, has sold its 4.5 percent stake in Sweden’s Oriflame Cosmetics, an investment from its €750m 1997 fund.

Industri Kapital, a Nordic private equity firm, has sold its 4.5 percent stake in Oriflame Cosmetics, a listed Swedish cosmetics company, to institutional investors.
Kim Wahl, a partner at Industri Kapital, said that the firm had reduced its holding to 4.5 percent through a series of share sales over the past year. He declined to provide an overall money multiple for Oriflame. At the time of its 2004 flotation, Oriflame had returned almost six times its original investment.

Following the disposal, Industri Kapital is expected to have a total IRR for the investment of approximately 50 percent.

Carnegie Investment Bank managed the sale of more than 2.5 million Swedish depositary receipts, equivalent to a 4.5 percent stake, at a value of approximately Skr610.5 million (€62.5 million).
Industri Kapital originally acquired almost 40 percent of Oriflame’s equity in 1999, alongside family founders and management, through its Industri Kapital 1997 fund, which closed on €750 million in August 1997.
In March 2004, the company floated on the Stockholm Stock Exchange with a market capitalisation of Skr11.3 billion, raising €225 million in cash for Industri Kapital and providing a multiple of almost six times its original investment. Industri Kapital’s stake at the time of the flotation was reduced to 16 percent.
Wahl said that there are still a few investments left in the 1997 fund but that “exits were coming to fruition. We began investing the fund in the late 1990s, which was a challenge as we were looking to exit in the years 2001 and onwards, which was not the best of times. Relatively speaking, the 1997 fund has proven to have performed well, far better than some people in the market had speculated”.
Industri Kapital’s current fund, the vintage-2005 €825 million Industri Kapital 2004 fund, is approximately 55 percent invested and fundraising for a new vehicle is expected early next year.