Nordic Capital acquires Finnish metal firm

The Stockholm-based investor hopes to strengthen Outokumpu Copper’s position in the Asian market following the deal, thought to be worth around €600m.

Nordic Capital, the mid-market European buyout firm, has acquired Outokumpu Copper Products, a division of metal technology company Outokumpu Group.

The transaction value has not been officially disclosed, but Outokumpu indicated the deal was worth €599 million ($772 million) according to Reuters. Of this, €389 million is in cash; the remainder consists of debt and pensions liabilities.
 
Outokumpu Copper is headquartered in Finland and listed on the Helsinki stock exchange. It operates 27 sites in 13 countries concentrated in the US, the EU and Southeast Asia, and manufactures fabricated copper products including tubes and coils, copper and brass radiator strips, and superconductors. It employs 6,400 people and had sales of €1.7 billion in 2004.
 
The divestment of its copper division is part of Outokumpu Group’s programme to refocus on its core business of stainless steel. Outokumpu Copper will retain the Outokumpu name for up to 12 months while the new management evaluate the possibility of rebranding.
 
Nordic said in a statement that the firm believed Outokumpu Copper had potential for significant growth in the Asian market and through the introduction of new products.
 
Based in Stockholm, Nordic Capital is currently investing the 2002 vintage €1.5 billion Nordic Capital Fund V. This is the latest in a string of acquisitions for the firm. Last month, it acquired a controlling stake in Danish-headquartered pharmaceutical firm Nycomed.
 
It also acquired Swedish medical device company Atos Medical from Fisher Scientific International for $110 million, and acquired joint control of Leaf, the sugar confectionery division of international food ingredients company CSM, alongside London-headquartered CVC Capital Partners.