IK wraps up 1994 fund with Enermet sale

Stockholm-headquartered private equity firm Industri Kapital has sold its last investment from its €250m 1994 vehicle, generating an overall 4x return for the fund.

Nordic mid-market buyout firm Industri Kapital has sold its stake in Finnish meter reading business Enermet to Baynard Group for an enterprise value of approximately €90 million ($115 million).

Industri Kapital originally acquired Enermet from Nordic energy company Fortum Corporation in August 1999 for €102 million. Fortum reinvested in the new company following the transaction, paying €13 million for a 30 percent stake.

Anne Holm Rannaleet, partner in Industri Kapital’s Sweden office, told PEO that the sale had returned its cost to shareholders. “This was not one of the best investments in our 1994 fund, which is our best fund to date in terms of performance,” she said.

Rannaleet said that Enermet is the last divestment of the €250 million Industri Kapital 1994 Fund. “There were twelve investments in that fund and overall it has returned about four times the original investment to our shareholders.”

Headquartered in Finland, but with sales offices in Australia, New Zealand, Czech Republic, Germany, Denmark, the Netherlands, Norway, Sweden and Switzerland, Enermet supplies automatic meter reading and load management systems. The company employs 265 staff and reported net sales in 2005 of €75 million.

Industri Kapital’s most recent transaction was the purchase of Sport Group, a German provider of outdoor sport and recreational surface systems, from ECM for an undisclosed sum. Rannaleet said that the transaction was the last investment from its €2.1 billion Industri Kapital 2000 Fund, which is now fully invested.

The firm has also carried out a number of recapitalisations in the last few months, including a €65 million recap of Swedish construction company Myresjöhus, a December 2004 acquisition, generating a 3x return on its original investment.

Industri Kapital is currently investing from its Industri Kapital 2004 Fund, which raised €825 million in early 2005. The vehicle is around a third invested in five transactions, said Rannaleet.

Stockholm-headquartered Industri Kapital has approximately 70 staff, of which half are investment professionals, according to Rannaleet. The firm also has offices in London, Hamburg, Oslo and Jersey.

Established in 2002, Sydney, Australia-based Bayard Group invests primarily in the energy measurement and efficiency sector, with $375 million committed to date. The firm has an investor base including DB Capital Partners; Allianz Capital Partners; Sofina; and Dubai International Capital. In February of this year, Bayard Group raised AU$150 million (€91 million; $116 million) for further acquisitions.