3i makes 10 times its money on Nordic Modular
3i, Europe’s leading private equity and venture capital company, together with the management of the Nordic Modular, has signed an agreement to sell all the shares in Nordic Modular to Kungsleden AB, a Stockholm-listed real estate company. The sale price is approximately €100 million (SEK 918 million) and includes the subsidiaries Flexator, Temporent and Nordic Modular Leasing. 3i's proceeds represent a money multiple of nearly 10 times its original investment and a cash uplift of €65 million (SEK 600 million).
3i acquired Nordic Modular from Skanska in 2005. The company is a market leader in Scandinavia in manufacturing and letting modules to be used for temporary premises with a turnover of €61 million (SEK 560 million) in 2006. The company has approximately 220 staff and is divided in two business lines: Temporent which rents out temporary premises such as offices, schools and nurseries and Flexator which manufactures module buildings.
Lars Erik Blom, Director, 3i Nordic, said: ”We have, together with management, reached the targets defined in the development plan that was created a year ago. For example, we have established a new management group that focuses on increasing the company’s sales and marketing activities. On the back of a strong market, the team has grown Temporent’s utilisation rate from 60 % to 90 % in a much shorter time than originally estimated, while Flexator has strongly improved its profitability.”
Per Johansson, Managing Director, Nordic Modular, comments: ”During the past year, 3i has helped us take advantage of the positive market development and invest in the company’s future growth. Nordic Modular is now ready to take the next step in its growth and Kungsleden is an ideal new partner to support the company’s further expansion.”
Notes to editors
3i is a world leader in private equity and venture capital. We focus on Buyouts, Growth Capital, Venture Capital and Infrastructure and invest across Europe, the United States and Asia. Our competitive advantage comes from our international network and the strength and breadth of our relationships in business. These underpin the value that we deliver to our portfolio and to our shareholders. www.3i.com
About Nordic Modular
Nordic Modular is a market leader in producing and letting of modules to be used for temporary buildings. The company is divided into business lines Temporent and Flexator.
Temporent has been established in 1995 is today one of the biggest companies in Scandinavia renting out temporary premises. Temporent's clients are located in Sweden, Norway and Denmark, and the modules are being used as offices, schools and nurseries. Further information:www.temporent.se
Flexator has been a market leader in Sweden for 50 years in building prefabricated buildings, e.g. schools, offices and hotels. The clients are among both private and public sector. Flexator head office is located in Anneberg in South of Sweden and sales office in Stockholm. Further information: www.flexator.se