Industri Capital and Gilde both exit Noviant

The Sweden-based private equity group has sold its majority stake and the Dutch firm its minority position in the Finnish chemicals group to US firm J M Huber Inc.

The acquisition sum has not been disclosed in a deal that saw the Atlanta-headquartered chemicals firm not only buy out Industri Kapital but also a further 10 per cent stake held by Dutch private equity house Gilde. Both sellers are reported to be “very pleased” with the sale price negotiated.

Industri Kapital acquired its 66 per cent stake in Noviant in 1996 for an enterprise value of E168m. It subsequently invested a further E75m in the company, including the purchase of a further E34m of equity.

Noviant manufactures and markets carboxymethol cellulose, a type of cellulose ether used widely in the paper, pharmaceuticals and detergent industries. Noviant had sales of E188m in 2000.

This sale is another in the line of exits Industri Kapital is undertaking as it looks to realise its 1994 fund. The firm closed its most recent fund, Industri Kapital 2000, in late January this year with E2.1bn in commitments [see PEO story 24/01/01 – Industri Kapital closes fund at E2.1bn].

Industri Kapital has since caught the headlines with its March acquisition of eight businesses from within Swedish telecom Telia [see PEO story 29/03/01 – Industri Kapital in E350m Telia acquisition].