Palamon books 3.3x on Eneas

Nordic firm Norvestor has agreed to acquire the Scandinavian energy services supplier for an undisclosed sum.

Palamon Capital Partners has agreed to sell Scandinavian energy services supplier Eneas Group to Nordic private equity firm Norvestor Equity, according to a statement from the firm.

Norvestor is acquiring around 80 percent of Eneas’ shares, with the remainder held by management and Eneas employees.

The transaction, which is expected to close in August, will result in total proceeds of NKr750 million (€81 million; $90 million) and a return on invested capital of 3.3x .

Eneas supplies corporate energy services to small and medium-sized enterprises in the Nordic region, serving more than 25,000 customers with energy brokerage, energy audit and smart metering services.

Palamon acquired a substantial majority stake in the business in 2010 for NKr375 million. Since then Eneas has grown into the largest independent energy broker for SMEs, representing 1.7 TWh of annual energy consumption, Palamon said.

In 2016 Eneas, which operated in Norway and Sweden, expanded organically into Finland. Its pro-forma sales in 2015 were Nkr478 million and the company has 170 employees, Norvestor said.

Palamon partner Jean Bonnavion said during the past three years EBITDA at Eneas has increased at a compound annual growth rate of 40 percent.

Norvestor invested in the business using its seventh fund, which closed on its Nkr4.9 billion hard-cap in February. The firm said the customer value proposition at Eneas is built on convenient and independent electricity sourcing, protection against energy price volatility, green energy certificates, and a 20-year track record.

Other investments in Norvestor VII include HydraWell Intervention, an oil well integrity specialist, and 4Service, a Norwegian contract catering and facility management company.

Palamon is currently in market with Palamon European Equity IV. The target size of the fund is unknown, but it is understood the vehicle has already made four investments, including Currencies Direct, which the firm agreed to acquire alongside US firm Corsair Capital in a deal valuing the business at more than £200 million ($265 million; €238 million), as reported by Private Equity International.

In April Palamon sold independent wealth manager Towry to Permira-backed Tilney Bestinvest in a deal valuing the business at £600 million and generating a return on invested capital of 13x for Palamon investor, as reported by PEI.