Nordic Capital, the Swedish private equity house, is planning to make a move in the European durable goods market with the purchase of Hackman, a Finnish manufacturer of home and kitchen equipment listed on the Helsinki Stock Exchange.
Nordic has agreed to offer E33 per share for Hackman, valuing the business at E159m. The offer price represents a premium of 45 per cent to the company’s 12-month average share price of E22.80 and a premium of 14 per cent to the official closing price of E29 on Friday.
The board of directors of Hackman has unanimously recommended shareholders to accept the cash offer. Shareholders holding 30 per cent of the total amount of shares of Hackman have agreed to tender their shares at the offer price, according to a statement from Hackman.
Nordic, which confirmed that financing for the transaction had been put in place without giving further details, said that it would launch the tender offer for the business in four to six weeks time. Nordic will then seek to de-list the business from the Helsinki Stock Exchange. The public tender offer when launched will be subject to a minimum acceptance level of 90 per cent of the issued and outstanding shares in Hackman.
Helsinki-headquartered Hackman employs 3,000 people and comprises two main businesses, Metos and Iittala. Metos makes equipment used in professional kitchens for food and beverage production. Iitala manufactures Scandinavian homewares products. The business reported turnover of E346m in 2002, a 16 per cent increase on the 2001 figure. Operating profits stood at E21m.
Nordic Capital CEO Robert Andreen said Hackman was a business with “strong brands and long industrial history”. He confirmed that Nordic planned to split the two businesses following completion of the acquisition. “We would like to build and develop Iittala and Metos independently, thereby giving both the focus and resources for growth in line with their current strategies.”
Hackman is the latest transaction by Nordic Capital to be made from the firm’s Nordic Capital V fund, which announced a final close on E1.5bn in August. The fund, which received commitments from 60 institutions from 13 countries, will invest in mid-market buyout opportunities across the Nordic region.
Last month, the firm teamed with New York-based private equity firm Baker Capital to acquire Vivendi Universal’s Nordic pay television provider Canal+ Television.