Segulah III opens account

In its largest transaction to date, the Nordic mid-market private equity firm has agreed to acquire a Swedish automation company for SEK1.2bn, the debut transaction from its latest fund.

Stockholm-headquartered Segulah AB has agreed to acquire Swedish industrial automation company Hexagon Automaton for SEK1.153 billion (€125 million; $151 million).

The company was sold by its parent company Hexagon AB to Segulah on a debt and cash free basis. In 2004, the company generated revenues of SEK2.3 billion and had an EBITDA of SEK151 million.

Hexagon Automaton operates through 22 subsidiaries based across Northern Europe and China, specialising in hydraulics, pneumatics and industrial automation.

Jorgen Centerman, former CEO of ABB

Following completion of the transaction, Segulah will appoint two experienced Nordic industrialists to the board of Hexagon. Jörgen Centerman, former CEO of Swiss engineering company ABB will become chairman and Sven Ohlsson, former CEO of automation technology company Dacke Group will join the board.

The transaction is the first to be carried out from the firm’s third Nordic mid-market fund, Segulah III LP, which closed on SEK2.25 billion (€247 million; $312 million) last October and is also the firm’s largest transaction to date.

Segulah III was backed by global financial institutions including AlpInvest, BP Pension Fund, JP Morgan Fleming Asset Management, Massachusetts Institute of Technology and Wilshire.

Segulah was established in 1994 and manages and advises the €20 million Segulah I and €100 million Segulah II funds.