Nordic inks fourth exit this year

The 3x exit of nuts and screws manufacturer Bufab after 10 years of ownership marks the penultimate realisation for Fund V

Nordic Capital has made its penultimate exit from Fund V, a 2003-vintage vehicle that raised €1.5 billion, with the sale of its remaining 20 percent stake in publicly listed Bufab.

Specific financial details were not disclosed, though the firm said in a statement it had sold its holding to an institutional investor making a return in excess of 3 times its investment.

Nordic declined to comment on the transaction, while Bufab did not immediately return a request for comment.

A ‘C-parts’ manufacturer that makes components including screws, nuts, bolts and washers, Bufab was purchased in 2005 from steel and magnesium manufacturer Finnveden. It was listed on Stockholm’s NASDAQ in February this year, which increased its share price by 24 percent, according to the statement. It also noted that under Nordic’s ownership Bufab expanded its global presence from 10 to 23 countries. Annual net sales have grown on average 7 percent, amounting to MSEK 2,417 ($321, €261), according to the company’s website.

Nordic has been very active in 2014, completing four portfolio exits (via two trade sales and two IPOs) and acquiring seven portfolio companies.

Nordic’s latest fund is Fund VIII, a 2012-vintage vehicle that raised €3.5 billion and invests in Denmark, Finland, Germany, Norway, Sweden. As of this year, the fund acquired a majority stake in Lindorff – an Oslo-based debt collecting company – and Vizrt, a Norwegian video editing business.