Litorina acquires Pahlén(3)

Swedish buyout firm Litorina Kapital has bought swimming pool equipment company Pahlén. It is the second investment from its third fund, which recently held a first close.

Litorina Kapital has bought 75 percent of Pahlén, a manufacturer of swimming pool equipment, as the second investment for its third fund, for an undisclosed sum.

Pahlén’s family owners will retain a 25 percent stake. The company’s products include lighting, pumps, heating and measuring equipment for use in private and public swimming pools. Customers are mainly swimming pool manufacturers and wholesalers, but the company also attracts construction companies. 70 percent of the products are exported and the company sells to more than 50 countries.

The swimming pool company has enjoyed annual growth of around 15 percent over the last 10 years. Its estimated turnover for the current fiscal year is SK 155 million (€17 million, $23 million), with projected earnings of SK 26 million.

The buyout firm held the first close of its third fund last month on SK 843 million, and is targeting a SK 1.25 billion final close. Last month it sold Q-Matic, the company it jointly owned with 3i, to Altor for an undisclosed sum, making a nine times return on its initial investment with a 150 percent internal rate of return.