3i sells its stake in Ålö to Altor

14 Jun 2011

3i, an international investor in private equity, infrastructure and debt management has sold its stake in Ålö, a world leader in the manufacture of front-end loaders for agricultural tractors, to Altor fund III (“Altor”) for 2.2 bn SEK (€240m). Ålö is based in Umeå, Sweden, and has production facilities in China, the United States and France. The sale of Ålö will see 3i make approximately a 4x money multiple on its original investment.

3i invested in Alo in December 2002. Over the last 8 years, 3i has, together with the management team and Balticgruppen, successfully built a global market-leading manufacturer of front-end loaders and equipment with strong revenue.  In 2011, Ålö is expected to turnover approximately 2 billion SEK (€220m), which represents sales growth of 8% per year since the original investment; margins exceed 15%. Currently, Ålö has 25% of the world market for its products and is expected to sell a total of 34,000 loaders in 40 countries this year.

Through a comprehensive, strategic investment programme, Ålö has developed into a global market leader. The strategic investments have focused on both automated production and a new and broader product offering. Alo’s new owners and the management team will continue to invest in the company, in Umeå and across Sweden, to further develop the staff and skills that are already in place.

Ålö Managing Director, Olle Pehrsson, comments: “Through its long-term planning and sector knowledge, 3i has provided valuable support in our development over the past eight years. We are now happy to have Altor as a new owner in order to help us in the next phase of our growth. We are well-positioned to further strengthen our position in the market.”

Ålö Chairman, Stelio Demark, comments: “3i’s financial strength and its international network have been vital to the comprehensive efficiency and internationalisation programmes we have undertaken in recent years.”

Lars Erik Blom, Director 3i Nordic comments: “We are very pleased with Ålö’s development during our investment period. We have worked closely with the board and with the management team, especially with regard to strategic considerations and decisions.”

Advisers include SEB Enskilda, Mannheimer & Swartling and KPMG. The deal is subject to approval of the relevant competition authorities.

For more information, please contact:

Tomas Ekman, MD 3i Nordic 
Tel:  +46 8 506 101 33 / +46 73 097 00 55

Lars Erik Blom, Director 3i Nordic 
Tel:  +46 8 506 101 84 / +46 70 582 11 48

Kathryn van der Kroft, 3i PR team 
Tel:  +44 20 7975 3121

Notes to editors

About 3i
3i is an international investor focused on Private Equity, Infrastructure and Debt Management, investing across Europe, Asia and the Americas. Our competitive advantage comes from our international network and the strength and breadth of our business relationships.  These underpin the value that we deliver to our portfolio, shareholders and fund investors.

www.3i.com

About Ålö

The world leading Ålö has as a business idea to be best and quickest to develop and produce front loaders with associated equipment – and to continuously provide its’ customers with the best support possible. Ålö develops and manages two independent and market leading brands, Quicke and Trima. The group has sales companies in eight countries and factories in five countries. There is a total of about 600 people working in the group.

About Altor
The Altor Funds are private equity funds comprising the “Altor 2003 Fund”, with committed capital of EUR 650 million, the “Altor Fund II”, with committed capital of EUR 1,150 million and also the “Altor Fund III”, with committed capital of EUR 2,000 million. The Altor Funds are advised by Altor Equity Partners. The Altor Funds invest in companies in the Nordic region with a focus on value creation through growth initiatives, strategic development and operational improvements and have since their inception in 2003 invested in over 30 platform investments and more than 30 add-on acquisitions. Current and past Investments include Aalborg Industries, Dynapac, Meyn, Piab, Byggmax, Lindorff, Dustin, Helly Hansen, Apotek Hjärtat, Carnegie, and Papyrus.