Silverfleet Capital, the European mid-market buyout house that spun out from British insurance giant Prudential, has agreed to buy Danish agricultural equipment maker Cimbria for DKK1.025bn (€137m).
The London-based firm will acquire a majority stake in the business from Nordic mid-market private equity firm Axcel, while members of Cimbria’s management team will also reinvest an undisclosed amount of money for a minority stake.
The deal, which is Silverfleet’s sixth to be financed through its €670m 2007-vintage maiden fund, has been backed with debt financing from Nordea.
Silverfleet Capital Partners Fund is now 60 per cent invested, according to a spokesperson for the firm.
Thisted, Denmark-based Cimbria manufactures equipment used for either seed processing or post-harvest grain handling.
The company’s products include equipment for cleaning, drying and storing grain and seed, as well as conveyors linking equipment in a handling or processing line.
Products range from standalone equipment pieces to large custom built project installations.
Cimbria operates two production facilities in Denmark, and one in each of Austria, the Czech Republic and Italy, and today has around 740 employees.
Total sales are about DKK1.05bn (€140m), with EBITDA of DKK 145m (€19m).
“Cimbria is widely recognised for its high-quality products serving the seed- and grain-equipment markets,” Silverfleet Capital partner Gareth Whiley said in a statement released today.
“In particular it has an excellent reputation in the fast-growing markets of Eastern Europe, Ukraine and, increasingly, Russia.
“Expanding demand for grain and other crops, primarily due to population growth, is driving a need for greater agricultural productivity, which Cimbria’s products are well-placed to serve.”
Silverfleet Capital was advised by Handelsbanken Capital Markets, Deloitte Transaction Services, PwC, Travers Smith and Accura.
The deal marks Silverfleet’s second investment announced within the past few weeks, having also completed the acquisition of La Fée Maraboutée, a French wholesaler and retailer of women’s fashion, for €65m last month.
The firm has made a number of investments in the Nordic region, including Finnish Chemicals, a bleaching chemicals business headquartered in Äetsä, Finland, and Swedish allergy diagnostics company Phadia, which made the firm 6.1-times its initial investment.
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