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

I.C.E is a global provider of technology-based B2B2C travel-based loyalty and reward solutions for organisations such as Carnival, 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.)  ICE also partners with leading travel suppliers to generate incremental travel bookings from members of its loyalty programmes.

ICE employs over 2,600 staff and is headquartered in Scottsdale, Arizona with additional offices in Australia, UK, Portugal, India, Mexico, New Zealand and the Philippines.

Highlights

• Strong underlying market growth in cruise and rewards-based travel and tailwinds from increased use of loyalty programmes
• Partnered with the Founders to accelerate international growth and support strategic initiatives
• Transformative acquisition of SOR Technology, a leading provider in digital travel subscriptions
• Strategic partnership with Lateral, a travel-focused software development firm, to accelerate platform development
• Added to the senior management team with new CMO and VP of Finance roles
• Introduced Marty Cole, former Chief Executive of Accenture Technology, as Chairman, and Jorge Boone, former SVP of Partner Brands at RCI (largest brand partner) and World Travel Holdings (largest competitor) as a Board Director

Regulatory information 
This transaction involved a recommendation of 3i Corporation, a US wholly owned subsidiary of 3i Group.

Overview

Infinis is the largest generator of electricity from landfill gas in the UK, with a portfolio of 121 landfill sites and total installed capacity of over 300MW.

Recent developments

The business has performed well operationally and financially since our acquisition in December 2016, although long-term power price forecasts have decreased. As expected in our investment case, Infinis was a strong contributor to the Company’s income in the period, counter-balancing some other growth-orientated businesses in the portfolio.

Good progress has been made identifying opportunities to exploit the business’s spare engine and grid connection capacity. Together with the management team, we are reviewing projects in non-landfill gas generation activities, with 30MW of reserve power generation now under development. The Company has agreed to provide further equity of £12 million to support these projects.

In August 2017, Infinis appointed Tony Cocker as Chairman of the Board and Scott Longhurst as Non-executive Director and Chairman of the Audit Committee. Tony was previously CEO of E.ON UK. Scott is currently Group Finance Director at AWG and Managing Director of AWG’s non-regulated business.

In March 2018, 3i Infrastructure plc announced a follow-on investment of c. £125 million to fund Infinis’s acquisition of Alkane Energy, an independent power generator from both coal mine methane and Reserve Power operations and the largest generator from CMM in the UK.

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 11 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.

Investment Rationale

3i Infrastructure acquired Ionisos in September 2019, having committed to invest in July 2019.

• Diversification of 3i Infrastructure’s sector exposure and increased presence in the French market
• Sound market fundamentals with non-cyclical drivers, including an ageing population in Western Europe
• Growing demand for healthcare services increasingly relying on single use medical equipment
• Increasingly stringent regulation governing the sterilisation of medical, pharmaceutical and cosmetics products
• High barriers to entry
• Platform potential with growth opportunities organically and through M&A

Overview

JMJ Associates is a US-headquartered, leading, global safety training and consulting firm with a focus on supporting multinational companies with complex capital programmes and operations. The business works with clients to significantly enhance their workplace safety and their project and organisational team performance through behavioural and cultural transformation.

JMJ has a substantial international presence and future growth will come from its strong underlying end-markets, the increasing complexity and size of major capital projects, rising global spending on workplace safety and continued growth in the utilisation of external expertise in safety and project execution services.

Highlights

• Via our Business Leaders Network we introduced Pete Regan, who has unique experience in consulting and safety businesses, as Chairman
• Moved to a full partnership structure in 2015
• Using our international network to identify and support further growth opportunities

Regulatory information 
This transaction involved a recommendation of 3i Corporation, a US wholly owned subsidiary of 3i Group.

Overview

Joulz is a leading owner and provider of essential energy infrastructure equipment and services in the Netherlands. It leases essential energy infrastructure equipment and meters to a large and diversified customer base of industrial, commercial and public sector customers. It has two business units: Infrastructure Services and Metering.

The Infrastructure Services business owns and leases medium voltage electricity infrastructure such as transformers, switchgear and cables under long-term contracts. The Metering business owns and leases approximately 50,000 electricity and gas meters for non-household customers under medium term contracts.

Investment Rationale

3i Infrastructure acquired Joulz in April 2019, having committed to invest in March 2019.

• Strong established asset base as well as good potential for growth
• Joulz is set to benefit from the Dutch government’s commitment to decarbonise the economy (the ‘Energy Transition’)
• The Energy Transition is expected to increase electricity consumption and demand for Joulz’s equipment and services
• 3i Infrastructure has relevant experience from investing in the Netherlands and previous investments in the electricity and leasing sectors

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

Overview

Belgium-headquartered KINOLT was established in 1989. The Company designs, manufactures and maintains Dynamic Uninterruptable Power Supply systems for top-tier customers in EMEA, the Americas and Asia Pacific through its worldwide network of 13 subsidiaries and over 40 distributors.

KINOLT has seen significant international expansion through the success of its unique NO-BREAK KS® DRUPS systems which ensure that its customers are immediately protected from power supply failures. This is a mission-critical product for its customers, which include data centres, hospitals, airports, banks, road and railway tunnels.

Highlights

• Technological leader position sustained through the expansion of its international sales organisation, and continued investment in product innovation
• Our extensive international experience and contacts in the sector supports KINOLT’s ambitious international growth agenda
• Introduced Peter Grosch as Chairman and Mike Tobin OBE as Non-Executive Director via our Business Leaders Network

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

Overview

Lampenwelt is the #1 speciality 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 15 country-specific online shops.

Lampenwelt differentiates itself from its competitors through an extensive range of over 45,000 products, in-depth product knowledge, excellent customer service and high product availability. The company generated €75m of sales in 2017, of which ~50% came from outside Germany, and has grown strongly in Germany and through a steady roll-out across Europe 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

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

Overview

Magnitude is a leading provider of data management solutions to enable organisations and business users to more effectively access, extract and analyse data from various ERP, cloud-applications, and other IT systems.  The company is headquartered in Austin, Texas, with global operations in the US, Canada, the Netherlands, UK and India. It has over 1,400 customers, including 50% of the Fortune 100.

The company has a portfolio of best-in-class products to unify fragmented data and deliver actionable insights for critical business decisions.  A few example applications include:

• an analytics tools to enable a business analyst to extract and harmonize data from SAP ERP to provide real-time, actionable insights on bottlenecks in the supply chain,
• a data integration tool to pull data from dispersed data systems sources into SAP Central Finance to enable a large enterprise to see all of their financial data in one place,
• a connectivity driver to enable different applications that companies use (such as Marketto, Salesforce, or Cloudera) to connect to one-another. 

3i invested in Magnitude in May 2019 and will look to accelerate the company’s global growth ambitions through new product development, investments in sales & marketing, and additional M&A. 

Highlights

• Growth tailwinds driven by the proliferation of data and increasing complexity of the enterprise software suit
• Focus on innovation and new product development, with a number of recent new product launches
• Buy-and-build platform with three acquisitions completed in the last 18 months
• Global sales presence with more than a third of sales into Europe

Regulatory information 
This transaction involved a recommendation of 3i Corporation, a US wholly owned subsidiary of 3i Group.

Overview

Oystercatcher is the holding company through which 3i Infrastructure plc holds 45% interests in five subsidiaries of Oiltanking, located in Belgium, Malta, the Netherlands and Singapore. These businesses provide over five million cubic metres of oil, petroleum and other oil-related storage facilities and associated services to a broad range of clients, including private and state oil companies, refiners, petrochemical companies and traders.

Recent developments

The five terminals all performed well in the period, generating EBITDA in line with or ahead of budgeted levels. Each terminal enjoys a strong position in its market and benefits from Oiltanking’s reputation for excellent service standards. Capacity at each location remains substantially let.

In Singapore, favourable conditions underpin the terminal’s key activity, which is gasoline storage and provision of associated services. During the period, a new marine jetty entered operation. This additional jetty capacity will improve customer turnaround times and further cement the competitive position of the terminal.

Customer demand for capacity generally remains strong, but we have seen some softening of demand for storage of certain product types.

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

Overview

Q Holding is a leading global manufacturer of highly-engineered, fully assembled medical devices and precision-molded elastomeric components used in a broad range of Life Sciences (medical and pharmaceutical) and Electrical Management (industrial, automotive and aerospace) applications. Headquartered in Ohio, it sells products in over 50 countries and has 13 manufacturing locations in North America, EMEA and Asia.

Q Holding has built a strong reputation as the supplier of choice to provide high-quality mission critical components for medical and harsh environment applications. It has developed longstanding relationships with a broad range of blue-chip customers who value Q’s ability to design and develop customized solutions and manufacture globally.

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
• Strong organic growth driven by favorable trends in medical (preference for minimally invasive therapies) and industrial / auto (content growth, connectivity, IoT) end markets
• Global manufacturing footprint aligned with customers. New facilities in Mexico, supporting investments in Europe, China and India
• Experienced management team with longstanding track record of driving innovation in product and service offering

Regulatory information 
Regulatory information: This transaction involved a recommendation of 3i Corporation, a US wholly owned subsidiary of 3i Group.

Overview

Formed in 2007, Regional Rail provides freight transportation, car storage, and transloading services in New York, Pennsylvania, and Delaware across three railroads and over 155 miles of track connecting to a diversified Class 1 railroad network.

In 2018, the company moved over 13,000 carloads while serving over 70 customers across a diversified set of end-user markets including heating, fuel blending, agriculture, chemicals, and metals. The company’s wholly owned subsidiary, Diamondback Signal, is the premier provider of rail-crossing installation and maintenance services to over 100 short-line rail customers across 20 states.

In October 2019, Regional Rail acquired Pinsly Railroad Company’s Florida operations adding 208 miles of track across three short-line railroads.

Investment rationale

• Essential service provider with high barriers to entry - irreplaceable track infrastructure with direct access to key customer facilities and multiple Class I railroad connections.
• Premium geography in the Northeast U.S. - located at the centre of a densely populated corridor within the New York, Philadelphia, Baltimore, and Washington DC metro areas.
• Freight revenue is largely generated from local consumption tied to these attractive end markets.
• Strong freight revenue growth of >9% p.a. since 2013.
• Attractive platform for consolidation as short-line rail space is ripe for consolidation; acquisition of Pinsly Railroad Company’s Florida operations in October 2019.

Regulatory information 
This transaction involved a recommendation of 3i Corporation, a US wholly owned subsidiary of 3i Group.

Overview

Royal Sanders is a leading European private label and contract manufacturing producer of personal care products. Its key geographies are the Benelux, Germany, France and the UK with plants in the Netherlands (Vlijmen), the UK (Preston and Bradford) and Belgium (Ieper).

Main product categories include shampoo, bath and shower gels, body lotions and hand wash. The company sells its products through private label, contract manufacturing and own brands including Van Gils, Sanicur and Odorex.

3i is investing alongside management to drive the company’s international growth strategy.

Highlights 

• Demonstrated a consistent and strong track record of profitable organic growth over the past 10 years, significantly outgrowing the market
• Differentiates itself through its focus on quality and service, longstanding relationships with key customers and superior operational capabilities at its state-of-the-art facilities
• Ready to drive consolidation in a fragmented industry with multiple potential buy-and-build opportunities across geographies

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

Overview

Headquartered in White Bear Lake, Minnesota, Smarte Carte is a leading supplier and manager of vended equipment in the travel and leisure industry. The company owns and manages baggage carts as the sole provider in 125 locations (including 49 of the top 50 airports in the U.S.). The company also owns and manages lockers and other consumer-rental equipment in amusement parks, fitness clubs, shopping malls and ski resorts.

Investment rationale

• Market leader across multiple product segments.
• The aging population demographic, increasing international travel, growth in leisure travel and an increasing middle class are driving growth of the market.
• Greg Hart, Chief Operating Officer for United Airlines, joined as a non-executive director to help guide the company’s future growth.
• Partner with management to grow company’s global footprint, especially in Europe through our established track record in the airport sector with Belfast City Airport and TCR.

Regulatory information 
This transaction involved a recommendation of 3i Corporation, a US wholly owned subsidiary of 3i Group.

Tampnet

Tampnet is the leading independent offshore communications network operator in the North Sea and the Gulf of Mexico. It is headquartered in Norway, with operations in the UK, Scandinavia and the USA.

Tampnet provides high speed, low latency and resilient data connectivity offshore through an established and comprehensive network of fibre optic cables, 4G base stations, and microwave links. It operates across four main business areas: fixed installations, mobile rigs and vessels, roaming for offshore workers and international carriers. The majority of its business involves providing fixed fibre links to oil platforms.

Investment rationale

3i Infrastructure acquired 50% of Tampnet in March 2019 alongside Danish pension fund ATP, having committed to invest in July 2018.

• Tampnet’s fibre optic links provide customers with mission-critical reliable communications
• Benefits from the growing requirement for high bandwidth and low latency in data networks
• More than 50 customers including oil and gas operators, offshore service providers and telecom operators
• Opportunity to grow into new segments such as offshore wind, commercial vessels and the point-to-point carrier segment

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

Overview

TCR is Europe’s largest independent asset manager of airport ground support equipment and operates at over 100 airports.

Recent developments

TCR performed well during the period. Contract renewal in its core European markets remains very high, demonstrating the defensive nature of the cashflows and TCR’s strong position in a growing market.

In the last six months, TCR has expanded its footprint (notably in Italy and Germany) and added new asset classes to its offering. It has won contracts with new customers including British Airways and Norwegian Air and has started operating the first equipment pooling system in the UK at Luton Airport.

Outside Europe, TCR continues to expand its foothold in Malaysia through additional contract wins with Malaysian Airlines. In Australia, it acquired Emerge Engineering & Maintenance, the leading local repair and maintenance business with workshops at six major airports. This provides TCR with an entry point to the Australian market.

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