Industri Kapital completes Nobia exit

The private equity house has sold its remaining 25 percent stake in Stockholm-listed kitchen manufacturer Nobia, achieving a money multiple of nearly 8 times according to market sources.

Industri Kapital (IK), the Nordic mid-market private equity house, has fully realised its investment in Nobia, the Swedish kitchen manufacturer.

Nobia was set up in 1996 when Industri Kapital acquired Stora Byggprodukter AB from Stora AB in a deal worth more than SKr1 billion. At the time Industri Kapital invested around SKr300 million (€33 million; $42 million) of equity from its 1994 fund for a 98 percent stake while management took the remaining two percent.

 

Nobia listed on the Stockholm bourse in June 2002 where it is currently trading at just under SKr78 (€8.50; $10.90) per share, an increase of 39 percent on the company’s share price a year ago, although 0.64 percent down on its initial listing price.

 

The IPO of Nobia, which raised SKr546 million, was three times subscribed and totalled 19.93 million shares, including 7 million new shares and 12.93 million that were sold by existing shareholders. Following the sale, Industri Kapital held 37.7 percent.

 

IK subsequently sold a further 13 percent stake in October last year for €51 million (€65 million), reducing its stake to 25 per cent.

 

Yesterday, IK announced the sale of the remaining 14.6 million shares it held in the business to Swedish and international institutional investors, taking proceeds from the sale to €200 million. In a statement, IK described Nobia as “one of its most successful investments to date.” Market sources said the group achieved a multiple of nearly eight times money invested.

 

Under IK’s ownership, Nobia has developed into a kitchen company with annual sales of €1 billion. Operating profit reached €68 million in 2003. The company’s range of products includes the Magnet, Poggenpohl and Gower brands. “The Nobia investment is a good example of how buyouts can work,” said Björn Savén, chief executive of Industri Kapital. “For Industri Kapital and its investors, this has been an exciting and rewarding journey.”

 

The 1994 fund has now realised seven of the ten investments made from the €250 million fund.”

 

Industri Kapital is currently raising capital for its fifth buyout fund. It held a first close of its latest fund, IK 2003, in October last year. The fund, which is targeting a final close later this year, secured commitments of €500 million at the first close, with HarbourVest Partners, Pantheon Ventures, Swedish insurer Skandia and Scandinavian financial services group Nordea among the limited partners.

 

IK 2003 is the successor to the firm’s IK 2000 Fund, which closed on €2.1 billion in November 2000. The fund will invest in mid- and large-cap buyout opportunities across Europe. The firm operates from offices in London, Hamburg, Oslo and Stockholm.