Swedish private equity firm Segulah has completed its first acquisition of 2003 with the purchase of Clean Chemical Sweden (CCS), a personal healthcare and pharmaceutical products manufacturer based in Borlänge, Sweden.
Segulah is paying SKr210m (E23m) for the business which has been part of Medivir, the Swedish listed pharmaceuticals company, since 1995. According to Medivir figures, CCS has grown by more than 25 per cent annually over the past five years. The company’s forecast for CCS in 2003 is revenue SKr170m with EBIT of SKr30m. The firm employs 120 people.
Christian Sievert, Segulah’s CEO, said: “CCS is a niche player with promising development prospects. We plan to grow the company via geographical expansion, especially in CSS’ existing markets in the Nordic region and the UK. We also plan to add further products as well as add-on acquisitions.”
Segulah was informed of the availability of CCS by the firm’s advisors and won a competitive auction against several local rivals, Sievert added.
The investment in CCS was made from Fund II, which raised E100m in 2000 and is to date one-third invested. “We’re very active at the moment,” said Sievert. “There has been an increase in activity over the past twelve months. We’re currently looking at a number of opportunities and plan to complete further deals this year.”
Segulah makes investments in medium-sized management buyouts in the Nordic area. The firm, established in 1994, advises two funds, Segulah I and II, to which AB Segulah acts as exclusive investment advisor and is also the largest limited partner of the funds, with 15 per cent of Segulah II and 31 per cent of Segulah I.
Segulah I, which raised SKr200m in 1997, has realised all but one of its investments, with Sievert saying the fund’s performance was ‘very good’. In total, the firm has made 17 platform investments and eleven exits.