Nordic books 4.5x on playground manufacturer

The sale of Denmark-based Kompan comes as Nordic is currently investing its latest fund, which closed on €3.5bn in December.

Nordic Capital has agreed to sell Denmark-based Kompan, an outdoor playground and play equipment manufacturer, to a group of Danish investors, according to a statement.

Financial details of the transaction were not disclosed. It is understood the divestment netted Nordic a 4.5x return and a 20 percent IRR however.

Nordic declined to comment beyond the statement.

Nordic took Copenhagen-listed Kompan private in 2005.

The company, which is headquartered in Odense, Denmark, sells its playground equipment to childcare centres, schools, and international fast food chains in more than 60 countries. The company has approximately 750 employees.

Nordic said it had helped to transform Kompan from a European player into a global company, largely through 14 bolt-on acquisitions. Revenues, which were DKK 1.3 billion (€170 million, $240 million) in 2013, have almost doubled during its period of ownership.

“The original goals for the investment have been achieved. Kompan is in every aspect a stronger company today with strengthened geographical presence,” Nordic Capital principal Michael Haaning said in the statement.

Nordic made the initial investment using its Fund V, a €1.5 billion vehicle which was raised in 2003. With the divestment of Kompan, it is understood Nordic has just one company left in Fund V, and a few minority stakes in companies that it has since then listed on stock exchanges.

Wheelchair producer Permobil, which netted Nordic a 5x when it sold the business last year, and Nycomed, a pharma business which also generated a 5x in 2012, are among some of the investments Nordic made from its Fund V. It is unclear what this latest exit will mean for the overall performance of the fund.

Nordic has generated €6 billion of proceeds for its investors from its exits since 2011 – equivalent to an overall money multiple of 3.6x and a 25 percent IRR, the firm told PEI in January. As of the end of the third quarter of 2013, the firm’s €1.9 billion 2006-vintage Fund VI was generating a net IRR of 7.7 percent and was valued at 1.4x cost, according to an LP source.

Nordic is currently investing its Fund VIII, which closed on its revised hard-cap of €3.5 billion in December. Last April, it bought Unifeeder, a Danish logistics company, from London-headquartered Montagu Private Equity for approximately €400 million.