Litorina makes second investment in domestic products

Litorina Kapital, a Swedish buyout fund, has added a second domestic goods manufacturer to its portfolio with the acquisition of a Swedish storage supplier.

Litorina Kapital, a Swedish lower mid-market buyout fund, has bought a majority stake of about 70 percent in Pelly Industrier, a Swedish storage manufacturer, for an undisclosed amount.

The management will continue to hold a minority stake.

Jörgen Ekberg, senior partner at Litorina, said: “It is a company with good profit level.  They will make SEK 25 million ($3.6 million; €2.7 million) to SEK 30 million after depreciation in 2007.  The company has been growing organically close to twenty percent for the last three years.”

Ekberg said Litorina may look for bolt-on acquisitions after completing the deal.  He said targets would be primarily in the Nordic region but some would be outside and that Litorina would look for synergies in existing markets but also in new markets.

Vinge gave legal advice to Litorina while Deloitte provided financial services.  Amber gave legal advice to the management.

Pelly manufactures sliding doors and storage products for kitchens, bathrooms and wardrobes.  In 2006, Pelly had a turnover of SEK 240 million.

Pelly Industrier is Litorina’s second domestic products manufacturer.  It also owns PAX Electro Products, a manufacturer of domestic fans, vents, towel rails and oil-filled radiators in the Nordic market.

In November Litorina sold Sensistor, a provider of industrial leak testing products, to Alcatel Vaccuum Technology, a supplier of analytical leak instruments, for an undisclosed amount.

Litorina Kapital is a private equity firm, which invests in small to mid-sized companies in the Nordic region.