Ratos buys 3i stakes in three co-investments

Swedish private equity firm Ratos has acquired stakes held by UK-based venture capital firm 3i in three companies in which the firms co-invested.

Ratos, the Stockholm-based private equity firm, has acquired further stakes in portfolio companies Arcorus, Gadelius and Haendig worth a total SEK250m (€27m) from co-investor 3i.

Ratos is paying SEK135 million for 3i’s 23 percent in Arcorus; approximately SEK65 million for its 50 percent of Gadelius; and SEK50 million for its 24 percent stake in Haendig. In addition, it is paying SEK58 million for a 27 percent stake in Haendig held by Gaia, the investment company controlled by billionaire ship owner Knut Kloster. The deals give Ratos 100 percent ownership of all three companies.        

The positions held by Ratos and 3i in the three firms were acquired when they bought Swedish private equity firm Atle in May 2001 in a £580 million deal. The deal saw 3i acquire 85 directly held investments and a 50 percent interest in a further portfolio of 19 investments held jointly with Ratos.       

“Follow-on investments in our portfolio companies are among the best investments we can make,” said Ratos CEO Arne Karlsson. “We have already developed in-depth knowledge in both the sector and the specific company. Furthermore, we have already built up relationships and drawn up plans for the years ahead.”

Arcorus is a provider of advanced hydraulic systems and products for the industrial, marine and offshore sectors; Gadelius is a distributor of high-tech products for professional niche markets in Japan and Europe; while Haendig is an owner of small and medium-sized wholesalers focusing on the DIY market and professional sector in the Nordic region.

Last month, Ratos and Lehman Brothers agreed to acquire an 81 percent stake in listed Swedish property group Tornet after failing to acquire the 90 percent stake required to de-list the company. It followed this with the €41 million purchase of Norwegian human resources management (HRM) firm ErgoBluegarden later in the month.