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Industri Kapital to sell GARDENA to Husqvarna for €730m

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Industri Kapital has agreed to sell 100 per cent of the shares in GARDENA, an Ulm, Germany-headquartered manufacturer of gardening tools, to its larger, Sweden-based competitor Husqvarna for €730m, which includes the transfer of debt, shareholder credits and pensions amounting to €416m.

GARDENA’s products include sprinklers, rakes, grubbers, lawn mowers and tools for ponds. The company employs 2,900 people. Industri Kapital bought GARDENA in 2002.

Detlef Dinsel, partner at Industri Kapital, said, ‘We are very pleased with the strong performance shown by GARDENA during our holding as demonstrated by the EBITDA margin increasing by more than eight percentage points to 18 per cent. GARDENA has also strengthened its position as the European leader in the garden equipment industry, benefited from a strong focus on its core business whilst also improving its operational performance.

‘For us, GARDENA has been a good investment which was also manifested by the strong interest in the company. In selecting a new owner for GARDENA, we were attracted by the further development opportunities for the business offered by Husqvarna and would like to wish GARDENA the very best for the future,’ Dinsel continued.

Industri Kapital is a European private equity firm with Nordic roots. The firm manages close to €4bn in fund commitments. Its current investments in Germany include Minimax, Sport Group and Dywidag Systems International.

Copyright © 2006 AltAssets

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