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.

Overview

Future Biogas is one of the largest anaerobic digestion (AD) plant developers and biogas producers in the UK, operating 11 AD plants on behalf of institutional investors under long-term contracts.

Future Biogas’s plants convert a wide range of feedstocks into clean and renewable energy through AD which produces biogas. Biogas can either be used to generate green electricity, or upgraded into biomethane and injected into the UK’s national gas network. Future Biogas produces over 500GWh of biogas per year, enough energy for over 40,000 homes.

Biomethane from AD is a ready-to-use and commercially-viable solution for hard to decarbonise industrial sectors. It does not require any upgrade to the existing UK gas infrastructure. Energy produced by AD plants is carbon neutral, as the CO2 released during the process matches the CO2 absorbed from the atmosphere by the feedstock.

Future Biogas promotes a regenerative farming approach, sustainably integrating feedstock from energy crops into agricultural systems. The circular process of returning digestate back to land can help replenish soil nutrients and carbon and displaces demand for carbon intensive artificial fertilisers.

Highlights

• Future Biogas is the largest producer of biomethane in the nascent UK market and a highly experienced developer and operator of AD plants, with full-service capabilities in development, construction and operations.

• There is strong political support and growing corporate demand for domestically-produced biomethane, which, as a direct substitute for fossil natural gas, has an essential role to play in decarbonising some of the UK’s gas dependent sectors such as heat, transport and manufacturing.

• On a national scale, the use of biomethane (vs. natural gas) allows the existing gas infrastructure to help meet the UK Government’s Net Zero and energy security targets without any change to the existing system.

• Future Biogas will develop a new generation of unsubsidised AD plants and sell the resulting biomethane under long-term offtake agreements to corporate buyers.

• In the longer term, Future Biogas intends to enter the nascent but high potential voluntary carbon offset market through carbon capture and storage.

• Future Biogas has a highly experienced management team with a strong track record in the sector.

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

Overview

Global Cloud Xchange (“GCX”) is a leading global data communications service provider and owner of one of the world’s largest private subsea fibre optic networks. The business provides high-bandwidth connectivity to a range of customers including over-the-top content providers, telecom carriers, new media providers and enterprises.

GCX’s 66,000km of cables span from North America to Asia. It is particularly strong on the Europe-Asia and Intra-Asia routes where it is well positioned to capitalise on growth opportunities and serve the exponentially growing demand for data traffic.

Recent developments

The business is performing in line with expectations; lease revenues have grown strongly as the business prioritises recurring revenues over one-off cash IRU sales.

GCX is currently examining several opportunities to invest in new cables in the Middle East which would provide synergies with its existing network.

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

Overview

Herambiente is the Italian leader in the waste treatment and disposal sector. The company owns and operates a portfolio of c.80 waste treatment facilities, mostly located in the Emilia Romagna. The plants include landfills, waste to energy plants, anaerobic digestion and other waste sorting facilities.

Herambiente’s revenues originate primarily from waste treatment and disposal and from sale of the resulting by-products, including electricity from incineration, biogas from landfills and recycled materials. In 2016, Herambiente treated c. 1.7m tons of urban waste, 4.7m tons of special waste and produced 161,455,167kWh of electricity.

Investment rationale

• Strong market position in its home region of Emilia Romagna and more broadly in Northern and Central Italy
• The large plants portfolio provides technology diversification and exposure to increased recycling across Europe
• The highly fragmented market offers significant consolidation opportunities
• The expertise and environmental permits required to build new facilities provide significant barriers to entry

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

Overview

Infinis is the largest generator of electricity from landfill gas in the UK, with a portfolio of more than 150 operational sites and total installed capacity of over 400MW.

Recent developments

• Financial performance at Infinis is strong, driven by higher power prices and price volatility which benefitted the power response assets in particular. Infinis’s cashflows are positively correlated with UK inflation through index-linked corporate PPAs and the Government-backed Renewables Obligations Certificate and CfD regimes.
• Infinis has made significant progress establishing a 1.5GW solar and battery pipeline across various stages of development. 103MW of Solar and 16 MW of Battery are currently under construction and on schedule to start generating by summer 2023, which will bring Infinis’s operational asset base to over 550MW. Higher development capex has been offset by a corresponding increase in long-term forecast power prices. 

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

Overview

Ionisos is a leading owner and operator of cold sterilisation facilities servicing the medical, pharmaceutical and cosmetics industries. Established in 1993 in Civrieux, France, Ionisos is the third largest cold sterilisation provider globally and operates a network of 10 facilities in Europe with market leading positions in France and Spain. It has over 200 employees and a highly diversified customer base of more than 1,000 customers.

Ionisos delivers a mission-critical, non-discretionary service for the medical, pharmaceutical and cosmetics industries for whom cold sterilisation is an essential component of the manufacturing process. It is typically applied to single use products that would be damaged by the heat and/or humidity of hot sterilisation methods.

Recent developments 

• Performance at Ionisos continues to be strong, with EBITDA growth exceeding expectations on the back of continuous strong demand in the medical and pharmaceutical markets, more than offsetting a downturn in the German cable industry. Inflation also remains a positive tailwind.
• In order to meet this fast-growing demand, Ionisos has made good progress on a number of growth projects. It acquired a facility in Switzerland from an industrial company, it started operations of a new plant in Kleve, Germany, in January 2023 (on budget and with additional customers beyond the anchor client), and it is actively considering further greenfield expansion plans in both new and existing locations.

Overview

JMJ is a US-headquartered, leading cultural transformation firm, focused on improving safety, sustainability, and performance. JMJ supports executives and front-line workers at companies with complex capital programmes and ongoing operations across diverse industries on a global basis.

Highlights

• Via our Business Leaders Network we introduced Pete Regan, who has unique experience in consulting and safety businesses, as Chair
• Moved to a full partnership structure in 2015
• Using our international network to identify and support further growth opportunities
• Using our experience in software to help JMJ add new digital capabilities and product offerings

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

Overview

Joulz is a leading owner and provider of essential energy infrastructure equipment and services in the Netherlands. Joulz serves approximately 20,000 industrial, commercial, and public sector clients with its solutions, that encompass realization, maintenance, management, and leasing of energy infrastructure equipment.

Joulz’ service offering includes mid-voltage infrastructure (owning and leasing transformers, switchgear and cables under long-term contracts), storage (owning and leasing large scale battery storage systems under mid- to long-term contracts), solar (large-scale installations under operational lease or with government-subsidized PPAs), metering (owning and leasing 50,000 electricity and gas meters under mid-term contracts) and EV charging (AC and DC charge points in mid-term exploitation, rental or CPO contracts). Additionally, it provides integrated solutions to address energy transition challenges such as grid congestion.

Recent developments

• Joulz performed ahead of expectations in the year, with the Infrastructure Services business unit continuing to see strong market demand. In December 2022, the business raised further debt financing on attractive terms to replenish its revolving credit facility, which is used to fund growth capex.
• During 2022, as part of a planned transition, Sytse Zuidema was recruited as CEO. Sytse is an engineer by background and has experience successfully leading several fast-growing businesses.

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

Overview

Konges Sløjd is a fast-growing premium international lifestyle brand offering apparel and every day products for babies and children. Headquartered in Copenhagen, Denmark, Konges Sløjd designs and markets high-quality children’s clothing, accessories, home products and toys through a curated network of (online-) retailers and direct-to-consumer e-commerce in more than 50 countries.

The business has been a forerunner in the premium baby/child segment through its stylish, functional, safe, durable, sustainable and affordable products across all children categories, and is well positioned to accelerate its growth across Europe, Asia and North America.

Highlights

• International footprint with rapid global expansion resulting from a proven and replicable online and offline market-entry strategy
• Global baby/child product market benefits from strong sociographic tailwinds such as premiumisation, rising middle classes and older parents having higher disposable incomes when they reach parenthood
• Highly fragmented market among mass, premium, affordable luxury and aspirational luxury players, with Konges Sløjd well placed at the convergence of the fast-growing premium and affordable luxury segments

Overview

Luqom Group is the #1 vertically-integrated online retailer of lighting products in Europe. It is headquartered in Germany, from where it distributes own-brand and third party products to customers all over Europe through 27 country-specific online shops.

Luqom Group differentiates itself from its competitors through an extensive range of 50,000 products, broad and differentiated product assortment, in-depth product knowledge, excellent customer service and high product availability. The company generated >€350m of sales in 2021, of which ~60% came from outside Germany. Luqom has grown strongly in the DACH region as well as internationally, through a steady roll-out across European countries in recent years.

Highlights

• Via our Business Leaders Network we appointed Jochen Wilms, a seasoned expert in both the building supply and online industries
• Supporting the business to further strengthen its position in Germany and further penetrate existing and additional international markets
• We also introduced the operational Venture Capital fund Project A Ventures as minority investor to further improve Lampenwelt’s best-in-class digital capabilities
• Acquired Netherlands-based QLF / Lampenlicht, the leading player in the Benelux region, in July 2019 as well as Lampemesteren, the leading online retailer for premium lighting products in the Nordics, in March 2021

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

Overview

MAIT Group is a leading provider of innovative and pioneering digital solutions in the DACH region.  Headquartered in Rottweil, Germany, MAIT focuses on software and hardware in product lifecycle management (“PLM”), enterprise resource planning (“ERP”) and IT services generating approx. €150m in sales per annum.

The business develops and implements solutions in close cooperation with their over 6,000 SME customers. As a strategic implementation partner, MAIT uses the most innovative technologies from market-leading PLM, ERP and IT providers such as Siemens, PTC, SAP-PLM, abas, Comarch, HP and Fujitsu.

Highlights

• Differentiates itself by looking at digitisation in a holistic way and developing tailored solutions in partnership with its customers
• High level of recurring revenues driven by multi-year maintenance and IT infrastructure contracts
• Operates in an attractive market which is expected to continue to grow considerably; medium-sized companies in particular are investing significantly in digital transformation in order to make their processes more efficient and effective
• Demand for PLM, ERP and IT is expected to grow by around 8% annually in the coming years, driven by megatrends such as IoT and Industry 4.0
• Kamy Niroumand, former Chief Sales Officer at T-Systems and current Chair of HR management software provider P&I, has joined the Advisory Board as Chair
• Strong M&A track record and further consolidation opportunities in a fragmented market

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

Overview

Mepal is a leading Dutch lifestyle consumer brand that is known for its innovative, high-quality and sustainable products for storing, serving and take-away of food and drinks.

Headquartered in Lochem, the Netherlands, Mepal’s products are renowned for their original and premium design, functionality, convenience, quality and sustainability, resulting in market-leading levels of customer satisfaction. The products are sold through mass and specialty retail channels, e-commerce partners and Mepal’s own online channels.

The company has grown impressively since 2018 driven by organic expansion into food retail and other large retail chains in Germany and increased e-commerce revenue.

Highlights

• Strong track record in both innovation and design, winning numerous leading design awards
• Further growth planned in existing core markets of the Netherlands, Belgium and Germany as well as developing new markets in Europe
• Planned growth of its online business, further benefitting from increased e-commerce opportunities
• Strong focus on ESG; Mepal is focused on increasing the share of recyclable materials in the production process and customers can re-order parts to extend the lifecycle of their products. Additionally the products themselves help reduce food waste and the usage of single-use packaging, such as plastic bags and single use cups and bottles
• Differentiates itself from the competition based on premium design, functionality, product quality and a history of innovations (both re-designing existing concepts and launching new product lines)

Overview

MPM is an international leader in branded, premium, natural pet food. The business owns leading pet food brands such as Applaws, Encore and Reveal and differentiates itself through its high quality, human-grade products, its natural, clean-label ingredients and its “cat first” proposition.

MPM is a certified B-Corp and its loyal customer base places great importance on its sustainable sourcing and recyclable packaging. Headquartered in Manchester, UK, MPM has an established presence in the UK, EMEA and APAC with a fast-growing business in North America resulting in international sales now accounting for more than 70% of revenues.

The market has proven resilient through economic downturns and Covid-19, with pet ownership increasing amongst a highly engaged and loyal community for whom pets are seen as family members.

Highlights

• The premium wet cat food market is large and is forecast to continue to grow at c.7% p.a.
• MPM fits well with our desire to invest in strong mid-market businesses where we see significant headroom to accelerate international expansion
• We invested £125m alongside management for a majority stake in this rapidly growing, resilient business
• Strong relationships with key retailers across pet specialist, grocery and online channels

Overview

Founded in 1982 and headquartered in the Netherlands, Nexeye is a market leading value-for-money optical retailer in the Benelux with a presence in Sweden. The company offers a range of private label and branded spectacles, as well as hearing aids, contact lenses and sunglasses, at average price points significantly below its major competitors.

Nexeye is one of the most well-known optical retailers in its core markets, with a high level of brand awareness and customer loyalty that will benefit from long term macro-growth dynamics.

Highlights

• Leading value-for-money retailer in eyewear products and hearing aids
• Benefits from long-term, macro growth dynamics including an aging population and an increasing consumer focus on value-for-money
• Fragmented European optical retail market presents significant opportunities for growth

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

Overview

Oystercatcher is the holding company through which 3i Infrastructure holds a 45% interest in Advario Singapore Limited (previously Oiltanking Singapore Limited).

Advario Singapore is a 1.3 million cubic metre facility focused on storage and blending of refined clear petroleum products for a range of blue chip customers. With a premier location, on Jurong Island, it is accessed by pipeline, sea going vessel and barge.

Oiltanking is one of the world’s leading independent storage partners for oils, chemicals and gases, operating 41 terminals in 18 countries with a total storage capacity of 16 million cubic metres.

Recent developments 

• Performance at Advario Singapore in the period was in line with expectations for the year to 31 March 2023. The market for oil products continues to be backwardated, with future prices below current prices. However, strong activity levels resulted in high storage utilisation across the region which was supportive for good contract renewals in the period. Advario Singapore continues to be the premier gasoline blending terminal in Singapore and in the wider Asia Pacific region, and therefore commands good rates.
• The strategic transition to some green fuel storage is progressing well. In 2022, a first agreement was signed with an anchor customer to start storing and blending sustainable aviation fuel (“SAF”). The project is on track and is expected to be operational in 2023. We believe this gives Advario Singapore a first mover advantage for SAF related business. A further contract has been agreed with a second customer for storing sustainable marine fuel.

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

Overview

Q Holding is a global leading manufacturer of catheters and high-end materials science-based critical components and subassemblies for the medical devices industry. Headquartered in Ohio, it sells products in over 80 countries and has 13 manufacturing locations in North America, Europe and Asia.

Q Holding has built a strong reputation as the supplier of choice to provide high-quality components that are mission critical. It has developed longstanding relationships with a broad range of blue chip customers who value their ability to develop such critical products and solutions.

Highlights

• Acquisitions of Degania Medical (Dec. 2016), a leading global manufacturer of catheters and other medical devices and Silicone Altimex (July 2015), a silicone provider of medical device components and pharmaceutical assemblies
• Focused on achieving significant organic growth, driven by its differentiated product offering, high service levels and a strong end-market
• Experienced management team with longstanding track record of driving innovation in product and service offering
• Sale of Q Holding’s QSR division, a leading developer and manufacturer of electrical connector seals, for $625m
• Sale of Precision Components Division, a leading provider of silicone and elastomeric molding and extrusion capabilities, for c.$172m

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