Montagu doubles money on Danish logistics

Nordic has  agreed to  acquire Unifeeder from  Montagu.

London-headquartered Montagu Private Equity has agreed to sell Unifeeder, a Danish logistics company, to fellow private equity firm Nordic Capital.

Both firms declined to comment on the financial details of the transaction, but a source close to the matter said the price would be approximately €400 million, giving Montagu a return multiple that was “well over 2x”.

Unifeeder transports containers from European container hubs in Belgium, England, Germany, the Netherlands and Spain to more than 40 regional ports across the UK, Scandinavia, the Baltic States, Russia and North Africa.

Since Montagu acquired the business in 2007, Unifeeder has expanded into new markets such as the UK and the Western Mediterranean. Montagu also invested to improve Unifeeder’s logistical operations and management structures, according to a statement.

“We are delighted to have partnered with Unifeeder over the past six years and delivered a successful investment. We have continuously grown the business, despite tough market conditions at times, and expanded into strategically important new markets,” said Mads Hansen, director and head of the Nordic region at Montagu Private Equity.

We have continuously grown the business, despite tough market conditions at times, and expanded into strategically important new marketsype Quote Here Mads Hansen

It is the third exit Montagu has made this year. Last month it landed a 3.5x return on ADB Solutions, an airfield lighting business, which it sold to Paris-based PAI Partners. In February, Montagu sold ghd, a company that makes hair dryers and straighteners, to Lion Capital for €300 million, generating a 3x return.

The acquisition of Unifeeder is the first investment from Nordic Capital Fund VIII, which reached a €1.7 billion first close in February. Nordic is expected to hold a €3 billion final close this summer, according to a close familiar with the matter. The firm declined to comment on fundraising.

Unifeeder is “an attractive platform for further organic and acquisitive growth” and “there is excellent expansion potential with both feeder and short sea business in current and new geographies”, Lars Terney, a partner at Nordic, said in the statement.

Montagu was advised by Canaccord Genuity, while Nordic was advised by Citigroup and Unicredit. The transaction remains subject to approval by competition authorities.