Overview

Action, which was established in 1993 in the Netherlands, is the fastest-growing non-food discounter in Europe with more than 2,300 stores across the Netherlands, Belgium, France, Germany, Luxembourg, Austria, Poland, the Czech Republic, Italy, Spain and Slovakia. 

Large-scale procurement, flexible assortment, optimal distribution and a cost-conscious culture ensure good quality products at the lowest price. Action offers over 6,000 low-price, good quality products in fourteen categories. In Action's stores, customers can find well-known A-brands next to Action-owned brands and brands owned by Action's suppliers. Two-thirds of the assortment changes frequently, as Action introduces more than 150 new articles every week. 

The product assortment includes decoration, DIY, garden and outdoor, household goods, multimedia, sports, stationery and hobby, toys and entertainment, food and drink, laundry and cleaning, personal care, pet, fashion and linen.

Action generates revenues of over €8bn per annum. Its business model differs from that of more traditional retailers because only 35% of its total product range is fixed. Action believes that it is possible to offer a surprising assortment at the lowest price, while improving the quality and sustainability of their products. The essence of Action: "small prices, big smiles". 

Highlights

• In 2022 Action won 3 awards in the ‘Retailer of the Year’ competition, awarded by customers, and 6 private label products won the ‘Product of the Year Award’

• Opened twelve distribution centres and three hubs

• Operates more than 2,300 stores across eleven countries and provides work to almost 80,000 people 
• Leveraging our network, experience and resources to further internationalise the business
• Ongoing sustainability efforts: 90% of cotton products sold by Action are certified by the Better Cotton Initiative, 92% of the paper and wood products in its range are made from sustainably sourced wood and 100% of their private label cocoa products are Fairtrade
• 95% of their stores are fitted with energy efficient LED lights and 90% of green renewable electricity is used for their stores, DCs and offices 
• 100% of their private label packaging is recyclable

Update 2022   

Regulatory information 
This transaction involved a recommendation of 3i Investments plc, advised by 3i Benelux.

Overview

AES’s mechanical seals are used in a variety of pumps and rotating equipment worldwide to prevent liquids and gases escaping into the environment. A wide range of mechanical seal types are manufactured to suit different industries and the significant investment made in modular design means that AES provides the best on-time delivery performance in the industry. 

The AESSEAL® range of seals, seal support systems and bearing protectors are designed to improve reliability and reduce maintenance costs of rotating equipment. The business is focused on giving customers such exceptional service that they need never consider alternative sources of supply.

Highlights

• Established a strong international position in many end-user markets including the most arduous Oil & Gas applications
• Exceptional customer service based on the world's most comprehensive inventory portfolio and advanced integrated manufacturing
• Received 13 Queen’s Awards
• Long-standing leadership in sustainability with clear focus on Net Zero Carbon

Regulatory information 
This transaction involved a recommendation of 3i Investments plc.

Overview

arrivia is a global provider of technology-based B2B2C travel-based loyalty and reward solutions for organisations such as American Express, USAA and Diamond Resorts.

The company has developed a network business model that enables leading brands to offer loyalty programmes that provide customers with unmatched value on all travel products (e.g. cruise, hotel, resort etc.)  arrivia also partners with leading travel suppliers to generate incremental travel bookings from members of its loyalty programmes.

arrivia employs over 2,300 staff and is headquartered in Scottsdale, Arizona with additional offices in Australia, the UK, Portugal, India, Mexico, New Zealand and the Philippines.

Highlights

• Strong underlying market growth in cruise and rewards-based travel; tailwinds towards increased use of loyalty programmes
• Partnering with the Founders to provide expertise and capital to accelerate the international growth of the business 
• Commercial investments in digital marketing and business development to support organic growth 
• Acquired three strategic businesses: 
  • SOR Technologies: TAM expansion into mid-market membership programmes 
  • WMPH: retail cruise agency with significant online presence 
  • RedWeek: online timeshare rental marketplace  
• Consolidated technology platforms into single unified travel booking and loyalty experience 

Regulatory information 
This transaction involved a recommendation of 3i Corporation.

Overview

Audley Travel (“Audley”) is a leading provider of tailor-made experiential travel to over 80 destinations worldwide. Serving clients predominantly in the UK and US, Audley is renowned for its superior customer service and in-depth destination expertise delivered by its country specialists. This exceptional service drives customer loyalty leading to high levels of repeat customers and referrals.

Founded in 1996, Audley is the clear market leader in tailor-made travel in the UK. The business expanded into the US in 2014 with the opening of an office in Boston that has grown rapidly and is now generating over 15% of total revenues.

Highlights

• Implementation of a wider employee incentive scheme to benefit a broader base of Audley management and country specialists
• Using our extensive experience backing transatlantic growth businesses and international network to support the business’s growth plans and M&A opportunities in new source markets
• Building on their market leading position in the UK and accelerating growth in the US business, including the launch of European destinations from 2016
• Continuing to drive the digital development of the business
• Completed a successful refinancing with the support of our Banking team 

Regulatory information 
This transaction involved a recommendation of 3i Investments plc.

Overview

BCA is a small regional airport in Belfast, Northern Ireland, located ten minutes by car from Belfast city centre In 2016 it served 2.7m inbound and outbound passengers. Its focus is domestic routes operated by scheduled carriers, serving business as well as leisure customers.

Currently four scheduled carriers (Flybe, British Airways, Aer Lingus and Eastern Airways) serve 17 domestic routes, including London Heathrow and London City. A small part of BCA’s traffic is international: Aer Lingus currently serves four sun routes (although this is due to drop to two) over the summer months; KLM serves Amsterdam; and Icelandair flies to Reykjavik.

Aeronautical revenues (airport charges) are not subject to economic regulation. Commercial revenues are generated principally from car parking, royalties on retail, food and beverage, car hire spend, rental income (lounges and offices) and advertising space.

Over 1,000 people are employed on the site, but only c.70 of those are employed by BCA. Many activities are outsourced (e.g. security, facilities management, air traffic control); and others are provided by third parties on-site (e.g. retail, food and beverage operations and ground handling). Fire services, maintenance, advertising, car parking and administration / management are the main activities that remain in-house.

Investment rationale

• BCA is critical infrastructure in Northern Ireland for people needing to travel between Belfast and the UK mainland
• Its location close to the city centre makes it the airport of choice for a significant part of the Northern Ireland air transport market: in particular for inbound business and leisure travel as well as for outbound travel for those based in, or close to, Belfast
• Opportunities exist to grow commercial revenues

Regulatory information 
This transaction involved a recommendation of 3i Investments plc.

Overview

Established in 1952, BoConcept is a leading Nordic design brand with dedicated distribution through dedicated BoConcept franchises around the world. BoConcept (literally translated from Danish "Living Concept") helps a wide range of customers to transform their home into a modern and extraordinary space fit to their style, through personal styling advice, great design at affordable prices and a high level of customisation. With an omni-channel offering through its ~300 stores in 67 countries across five continents, the homogenous brand concept of BoConcept is globally proven in metropoles around the world. 

The company realised sales of DKK1.5bn in the financial year ending 30 April 2022

Highlights

• Public to Private in 2016
• We are supporting BoConcept in continuing its successful international franchise store roll-out by leveraging the strength of the brand, store concept and product collection
• Accelerating its efforts to improve the omni customer journey as well as expanding its fast-growing B2B business
• Supporting BoConcept in driving its sustainability strategy
• Experienced an enormous digital acceleration, resulting in linking its online consumers to a virtual designer, thereby enabling BoConcept to establish a personal connection with its customers

Regulatory information 
This transaction involved a recommendation of 3i Investments plc, advised by 3i Benelux.

Overview

Cirtec Medical ("Cirtec") is a leading global provider of outsourced medical device and components design, engineering and manufacturing, headquartered in Minnesota. Cirtec specialises in outsourced solutions for active implantable medical devices. Customers rely on Cirtec’s expertise to provide value-add solutions throughout the entire development cycle to help bring life-enhancing therapies to market.

The medical device outsourcing (MDO) market is expected to grow at a high single-digit rate over the next five years and Cirtec is strategically indexed to the most innovative therapeutic end-markets that are growing at a rate beyond the broader MDO industry.

Highlights

• Helping Cirtec expand capabilities and footprint through the targeted acquisitions of Precision Components, Vascotube, Metrigraphics, NovelCath, Cardea, Cactus and Top Tool, and certain high-value IP assets in the highly-fragmented MDO market
• Supporting the company’s organic investments in capabilities and technology to more deeply vertically integrate within existing end-markets and expand capabilities to support entry into new markets
• Completed three greenfield facility build-outs, adding >120ft² of capacity and creating a low-cost footprint in Costa Rica, and executed four additional expansions of existing facilities to support customers with broader capacity
• Recruited William Hawkins (former Medtronic CEO) and William Ellerkamp (former ExtruMed CEO) to the Board of Directors

Regulatory information 
This transaction involved a recommendation of 3i Corporation.

Overview

Headquartered in the UK with offices across the US and Europe, Digital Barriers' unique video compression technology allows live streaming over low-bandwidth environments, including cellular body worn cameras and an ever-growing set of commercial applications. When coupled with its cloud-based, video management platform, Digital Barriers is able to provide an end-to-end solution incorporating a wide range of AI-based operational, safety and business intelligence analytics – the only such cloud video platform that works as effectively on cellular as on fixed networks

The company has been a trusted partner to leading law enforcement, intelligence and defence agencies around the world for many years and will continue to serve this market. Working closely with Intel, Digital Barriers has leveraged its unique IP to develop commercial off-the-shelf products that are now being sold by blue chip telecom and security partners such as AT&T, Vodafone, Fujitsu and G4S to a wide range of commercial and public sector customers across various end-markets.

Highlights

• Recruited Tom Alexander (former Virgin Mobile and EE CEO) as Chair and Bryan Schmode (former Avigilon executive and investor) as an advisor to the Board
• Augmenting team to support shift in go-to-market strategy from a direct sales model, predominantly serving the bespoke needs of military and government customers, to a channel strategy, partnering with leading global MNOs with an 'off-the-shelf' solution
• Supporting investment in new products and services that complement the existing offering (analytics, AI, etc.)

Overview

DNS:NET is a leading independent telecommunications provider in Germany. Established in 1998, DNS:NET owns the largest independent fibre-to-the-cabinet network in the Berlin area and is rolling out a fibre-to-the home network in Berlin and the surrounding regions.

The company differentiates itself through a superior network, local brand recognition and attractive pricing of high bandwidth products, which drives high customer satisfaction. 3i Infrastructure’s backing will allow DNS:NET to accelerate its build programme to provide gigabit-ready connectivity to its customers. 

Recent developments

• In line with its business plan, in December 2022, 3i Infrastructure invested a further €18 million into DNS:NET in support of its continued FTTH roll-out. DNS:NET, like many players across the sector, has experienced delays in connecting and activating waiting customers on its network. It has also experienced delays in the handover of local authority constructed networks that it will then operate. 

• In January 2023, Andre Mueller was appointed as CFO. He brings a wealth of experience as a senior finance professional across a range of sectors.

• In July 2023, Ralph Steffens was appointed co-CEO. Ralph has a 25-year track record in telecommunications, including experience rolling out fibre networks. 

  _{Note:  FTTH: Fibre-to-the-home.} 

Overview

Dynatect is a leading manufacturer of engineered, mission critical components that protect equipment.

Dynatect’s products are made from a variety of materials ranging from nylons to metals and are designed to protect and elongate the life of valuable equipment and protect workers near machinery. Products are low-cost yet critical, such as cable carriers or telescopic protective covers, and are sold into a large number of end-markets including automation, machine tools, construction, agriculture, transportation, medical and O&G. 

The company is headquartered in Wisconsin, USA, and operates in four locations in the US and two locations in Europe.

Highlights

• Recruited several new executives into the senior leadership team to drive key initiatives
• Investments in Pricing and New Product Development to drive organic growth
• Investments in an ERP implementation and lean practices to improve operational efficiency
• Introduced Bill Barker, former CEO of Mold-Masters as Chair, and Steve Breitzka, former CEO of Apex Tool and Group Executive at Danaher, to the Board

Regulatory information 
This transaction involved a recommendation of 3i Corporation.

Overview

ESP is an independent gas transporter (“iGT”) and independent electricity network operator (“iDNO”) providing the ‘last mile’ of connection between properties (predominantly residential, but also industrial and commercial) and the gas and electricity distribution networks.

It focuses on being an ‘independent asset owner’. It acquires (bids for) gas and electricity connections from ‘utility infrastructure providers’ (“UIP”), who have themselves designed and installed the connections for property developers. ESP is then responsible for maintaining the connections going forward and receives a regulated revenue stream for each connection from the gas and electricity companies who charge the end customer as part of their overall gas or electricity bill. Price regulation for both gas and electricity connections is based on the regimes of the gas and electricity distribution companies. Regulation is overseen by Ofgem.

Today ESP owns over 500,000 connections and has an order book for 200,000 more, making it the second largest iGT/iDNO in the UK. ESP also has a domestic metering business (representing almost one quarter of its revenues). Charges for meters are unregulated.

Investment rationale

• ESP operates under an established and proven regulatory framework that drives stable and high quality cash flow generation
• Significant growth is forecast from the demand for new UK housing. The financial crisis led to a number of years of low levels of new builds, which exacerbated the shortage of supply versus demand
• ESP does not undertake installation works and so does not compete with the UIPs. This lack of conflict of interest enables it to be a preferred acquirer of assets and to focus on customer service as it is a neutral host. This gives it a competitive advantage against other players in the connections market

Regulatory information 
This transaction involved a recommendation of 3i Investments plc.

Overview

EC Waste is the largest vertically integrated provider of solid waste services in Puerto Rico.

With locations throughout the island, EC Waste provides multiple waste services to over 80,000 residential, commercial, and industrial customers. The company operates four well-located, U.S. EPA permitted disposal sites, which enables EC Waste to serve all of Puerto Rico in an environmentally responsible and sustainable manner. Additionally, the company manages two transfer stations, runs the island’s largest regulated, solid waste collections network and hosts what will be Puerto Rico’s largest renewable natural gas collection project at its El Coqui facility.

Investment rationale

3i Group invested in EC Waste in November 2021.

• The company has enough capacity to serve all of Puerto Rico’s needs for decades ahead as communities and businesses consider moving away from non-compliant providers towards U.S. EPA permitted, fully compliant waste disposal options
• The company has a proven track record of providing top-tier services to the communities it operates in across the island
• EC Waste has made significant investments into its infrastructure and operations technology to improve performance and position the company for future growth
• There is significant opportunity to grow the company’s sustainable waste practices, such as its renewable natural gas collection activities

Regulatory information 
This transaction involved a recommendation of 3i Corporation.

Overview

Headquartered in Esbjerg, Denmark, ESVAGT is a leading provider of emergency rescue and response vessels ("ERRV") and related services to the offshore energy industry in and around the North Sea and the Barents Sea. The company is also the market leader in the fast growing segment of service operation vessels ("SOV") for the offshore wind industry. 

Its ERRV services mainly involve the rescue and recovery of personnel, but also include the dispersion and recovery of oil spills, crew transfers and towing. ESVAGT is the leading provider of ERRV services in Denmark and Norway, with market shares of approximately 100% and 50% respectively, as well as an established and growing presence in the UK. The majority of ESVAGT's ERRV revenues are associated with North Sea oil and gas production support, with the remainder generated by supporting exploration activity.

ESVAGT is also the pioneer and market leader in the provision of SOVs to offshore wind farms, with seven bespoke vessels in operation and a further two under construction. SOVs are purpose-built, high performance vessels, providing efficient transport of maintenance technicians to wind turbines and other offshore equipment, under long term contracts. The offshore wind market, and hence demand for SOVs, is expected to grow strongly over the coming years, creating significant opportunities for the company.

ESVAGT has been operating since 1981, employs over 1,000 people and owns a fleet of more than 43 vessels.

Recent developments

• ESVAGT has established a leading position in the offshore wind service operation vessels (‘SOV’) market. Its US joint venture, CREST, signed its first contract, a 15-year availability-based agreement with Siemens Gamesa servicing the Coastal Virginia Offshore Windfarm. This win positions ESVAGT very well as the near-term pipeline grows in the region. In Europe, a number of tenders will take place over the next 12 months and ESVAGT is expecting to benefit from its recent wins of green SOVs for Ørsted.
• The EERV segment continues to see strong momentum due to the improved oil and gas markets, attractive supply / demand dynamics and an increased focus on security of supply in Europe due to the war in Ukraine. ESVAGT has benefited from these attractive market conditions to extend several key contracts. 
• Inflation is generally positive for ESVAGT due to its index-linked contracts, however cost inflation, in particular fuel costs, has accelerated faster than expected in the period. 

Regulatory information 
This transaction involved a recommendation of 3i Investments plc.

Overview

European Bakery Group, a leading bakery group specialising in bake-off bread and snack products, is headquartered in Tilburg and operates eleven bakeries across the Netherlands, Germany and Ireland.

European Bakery Group offers a leading, innovative and comprehensive assortment, which is produced sustainably and with natural ingredients. The bake-off market for bread and snack products is an attractive and growing market, with significant barriers to entry.

Highlights

• We are investing to drive the company’s international growth strategy in the fragmented European private label market for bake-off bread products, whilst supporting European Bakery Group in the continued investments in its home markets
• The business differentiates itself through the breadth of its product offering, superior quality and scale which enable retailers to develop structurally attractive bake-off categories
• European Bakery Group was formed in May 2023 through the combination between our original investment Dutch Bakery and coolback in Germany. Panelto subsequently joined European Bakery Group to form the UK and Ireland platform within the group 
• In addition to the transformational acquisitions of coolback and Panelto, Dutch Bakery completed two strategic add-on acquisitions, bringing the total to 4 completed acquisitions under 3i ownership 

Overview

Headquartered in Paris, France, Evernex maintains equipment that is critical for customers' business continuity, with full coverage of all equipment (servers, storage and network) and all OEMs. With its global presence, Evernex maintains over 220,000 IT systems and is the clear leader in Europe, Latin America and MEA and has an increasing presence in North America.

Evernex acts as a single point of contact to address complex issues for its customers, combining strong technological capabilities with the ability to ensure quality of service anywhere across the globe.

Today, Evernex is a leading consolidation platform benefitting from a fragmented and highly resilient market.

Highlights

• Secured European leadership through the strategic acquisition of Technogroup (market leader in DACH, 1/3rd of Evernex's size) and the acquisition of Integra (leading player in the Benelux region)
• Complemented strong foothold in MEA with the acquisition of Storex (#1 in South Africa) 
• Established a strong presence in the US market through the acquisition of EmconIT, rapidly followed by the acquisition of XSi 
• Clear digitalisation roadmap to further enhance Evernex's tech-enabled proposition
• Strong governance with the appointment of two industry leaders as Non-Executive Directors: O. Delrieu (Trescal) and O. de Puymorin (Arkadin)
• Several Active Partnership levers launched to build a One Evernex: pricing, salesforce effectiveness, key recruitment, operational optimisation (notably opening of a new spare part production facility)

Regulatory information 
This transaction involved a recommendation of 3i Investments plc, advised by 3i France.

Overview

Formel D is a leading global service provider to the automotive and component supply industry, offering quality assurance and process optimisation along the entire value chain - from development to production through to aftersales.

The company offers a wide range of testing and inspection services for individual parts, systems and vehicles to major OEMs and suppliers. Formel D was founded in 1993 and has over 9,000 employees at 80 facilities in 22 countries worldwide.

Highlights

• Pursue attractive international growth opportunities both organically and by acquisitions
• Up- and cross-sell the service portfolio to customers internationally
• Partnered with management to expand higher “value-add” service offering
• Introduced CITIC Capital as investment partner with a broad network in China
• Introduced Ralph Heck as Chair via our Business Leaders Network

Regulatory information 
This transaction involved a recommendation of 3i Investments plc, advised by 3i Germany.