Litorina scores mega multiple on logistics exit

The Swedish mid-market firm has generated 10x its money selling furniture logistics business LGT to Nordic private equity firm Axcel in a rare secondary buyout. The deal is understood to be worth around SEK400m.

Litorina Kapital, the Swedish lower mid-market private equity firm, has netted a 10x cash return on the sale of logistics group LGT Logistics Holding. Financial details were not disclosed, but a source close to the situation valued the transaction at around SEK400 million (€37 million; $50 million).

LGT: changing sponsors

LGT was bought by Axcel, another Nordic private equity fund, in a rare secondary buyout. Axcel is currently investing from a DKK 3 billion (€400 million; $542 million) vehicle, Axcel III, it closed in early 2006. LGT is Axcel’s third Swedish investment; the majority of its portfolio is based in Denmark.

Litorina created LGT in October 2005 with the acquisition of furniture freight specialist LBC Sweden and its Danish sister company GM-ITM. The company achieved profit growth of 38 percent annually between 2005 and 2008, and last year turned over around SEK700 million.

Litorina closed its third fund on SEK1.38 billion in September 2007. The LGT deal is expected to close in May.