NPM Capital acquires Iddink in €100m deal

Dutch private equity firm NPM Capital has acquired a 70 percent majority stake in educational services provider Iddink Groep, according to a statement from the firm.

The shares were acquired from Rabo Capital, which acquired around 60 percent of Iddink in 2008, and several minority shareholders. According to Dutch daily Het Financieele Dagblad the deal is valued at around €100 million.

Nordian Capital Partners, which spun out of Dutch bank Rabobank in September, managed the transaction, but the proceeds from the sale will return to Rabobank, which invested in Iddink from its balance sheet.

A source with knowledge of the transaction indicated that the sale would generate an internal rate of return of between 10 and 20 percent.

Iddink supplies learning materials for Dutch secondary schools, and in recent years has continued to develop its web-based product Magister, which enables schools to carry out administrative, learning, supervisory and management processes.

“In NPM Capital, we have found a Dutch investor with a long-term perspective that will proactively contribute both knowledge and experience,” Iddink CEO Wignand Spring in ’t Veld said in a statement. “They understand that the developments in the education market are complex and that the successful execution of our strategy requires a long term investment horizon.”

NPM’s CEO Kees Arends said that Iddink’s business base and position in the market offer “significant opportunities for growth and acceleration”.

Following its spin-out from Rabo Capital, Nordian acquired Rabo Capital’s existing portfolio of 15 companies for around €300 million, which became Nordian Fund I. Additionally, the Nordian team secured €300 million in commitments for Nordian Fund II, which will invest in the Dutch mid-market by acquiring majority positions in profitable and sustainable Dutch businesses with revenues of at least €3 million. Dutch pension fund provider PGGM backed the spinout, investing 20 percent in Nordian Fund II and also bought a 20 percent stake in the firm’s Fund I, PEI reported at the time.

There are now 14 companies in Nordian Fund I, following the sale of ATAG heating to Ariston Thermo in September for an undisclosed amount. Nordian has made one investment from its latest fund, acquiring a majority stake in Kipp & Zonen, which designs, manufactures and sells measuring instruments used in meteorology, climatology and renewable energy. The financial details of the transaction were not disclosed.