Litorina has netted a 35 percent internal rate of return for its investment in IT and power supply company Coromatic Group after exiting the business to its management in a deal worth €40 million. The management buyout of the firm was backed by rival Nordic private equity firm EQT Partners.
Under Litorina’s stewardship the company grew its geographical presence from Sweden to the greater Nordic region and countries such as Rwanda, Kenya and Latvia. Its service offerings were also broadened to include back-up power supply, communications and other business lines.
We hand over a dynamic group to EQT, which together with management can take the next step in the group’s development
The expansion has resulted in the group’s revenues for 2011 on pace to reach SEK850 million (€95 million; $140 million) with “strong profitability”, according to a statement by Litorina. In a 2008 interview with PEI, Litorina managing partner Harold Kaiser said the firm planned to grow turnover at the group to more than SKR1 billion over the next few years.
“We hand over a dynamic group to EQT, which together with management can take the next step in the group’s development,” said Steene.
Coromatic chief Maths Waxin said following the transaction the company’s future growth will be able to benefit from EQT’s network outside of the Nordic region. Sweden-headquartered EQT has 13 offices across the globe, including bases in Hong Kong, London, Shanghai and New York.
Litorina formed Coromatic Group in 2008 through merging its three IT security portfolio companies Coromatic, Scanpocon and Metric Power. At the time the combined group’s turnover was around SEK550 million (€58.4 million; $85.8 million) with an EBITDA of more than SEK55 million.
EQT grabbed gold for “Firm of the year in the Nordic region” in the 2010 PEI awards. Nordic Capital grabbed silver with Litorina taking bronze.