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Capman creates Europe’s biggest sub-supply engineering company in spin out

17 Oct 2012

Nordic-based buyout house Capman has agreed to spin out parts of its Finnish portfolio company Komas to forge the largest business of its type in Europe with elements of steelmaker Rautaruukki.

The new company, to be named Fortaco, will concentrate on the engineering sub-supplies industry and as expected to generate pro-forma sales of about €270m this year, Rautaruukki said.

Capman owns about 82 per cent of Komas according to its website, having first bought into the company in 2007.

Rautaruukki said it would own 19 per cent of the new company, and would receive a cash payment of about €25m and equity-linked securities worth about €81m.

The merger is expected to be finalised by early December.

Capman’s move comes three months after it sold its remaining stake in Finnish discount store chain Tokmanni to Stockholm-based buyout house Nordic Capital.

That exit transferred the CapMan Equity VII B fund into carry with four portfolio companies remaining.

CapMan Equity VII A and CapMan Equity Sweden KB funds returned their total paid-in capital to investors following the deal, moving them closer to carry.

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