3i sells its stake in Balco to Segulah IV

25 Oct 2010

3i, an international investor in private equity, infrastructure and debt management, today announces that it has sold its minority stake in Balco, one of the leading developers of balconies and balcony glazing systems in Europe, to Segulah IV, L.P., a UK Limited partnership. The transaction sees 3i generate a 5x money multiple.

3i originally invested in Balco, based in Växjö Sweden, in 2001. Over the past nine years 3i has worked closely with Balco’s management team to successfully grow the business. During this time, the company has expanded into new markets including Germany, the UK and Poland in addition to further strengthening its position in its home markets of Denmark, Sweden and Norway. It has also launched a number of new products, including energy saving solutions. Since 2001, Balco has seen average revenue growth of 14% p.a. Turnover has grown from €16m in 2001 to an expected €62m for this financial year.

Balco, founded by Lars Björkman in 1987, is the leading developer of balconies and balcony glazing systems in Europe. The company’s strategy is based on technical leadership and continuous unique prod¬uct development. Balco’s expertise spans the entire process from design to production and mounting to installation. Customers have historically been tenant owner associations; one of Balco’s core market segments is the renovation market. 

Balco CEO Michael Wickell commented: “3i has provided valuable support in our development over the past nine years. We are now delighted to have Segulah as our new majority owner to assist us in the next phase of growth at Balco. We believe we are well positioned to further strengthen our market position.”

Lars Erik Blom, Director 3i Nordic plc (UK) and advisor to 3i, commented: “We are pleased to have supported Balco’s growth over the last nine years. During our investment, we worked closely with the management team to support the company’s international expansion and new product development. We believe Balco is well positioned and with the new owner Segulah will continue its success.“

Catella Consumer and Mannheimer Swartling have advised the sellers.

Notes to editors

About Segulah
Founded in 1994, Segulah is a private equity partnership focused on lower mid market buyouts in the Nordic region, with a business model of active ownership through its extensive network of industrial advisors. Segulah Advisor AB is the exclusive investment advisor to the Segulah II (MSEK 850), Segulah III (MSEK 2,350) and Segulah IV (MSEK 5,200) UK Limited Partnerships.

About 3i
3i is an international investor focused on Private Equity, Infrastructure and Debt Management, investing in Europe, Asia and North America. 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

For further information please contact:

Kathryn van der Kroft
email. kathryn.vanderkroft@3i.com
tel.  +44 207 975 3021