Buyout deals in the Nordics
There was a three-digit number of investments in the Nordic buyout phase in the first half of the year, something that has never happened before. In addition to a record number of investments in six months, the amount invested was also very high, with a growth of 133 per cent compared with the average over the past five years. The industrial sector is back as the most attractive sector and three of the largest transactions during the period.
The first half of 2021 has been characterised by high activity in the buyout segment. All-in-all, 109 investments were made, which is an increase of 60 per cent compared with the average for the period between 2016-2020.
In combination with many investments, large amounts of capital have also been invested from buyout funds in Nordic companies. A total of 10.7 billion euros was invested in these 109 investments. This is the highest amount invested in a single half-year in the Nordic buyout segment.
The industrial sector attracted the most investments after a dip in 2020 (see sector and country distribution) and also had three of the major transactions in H1. The health sector also attracted several huge investments (see large single transactions).
Sector and country distribution
The investments are distributed between many sectors, but industrial companies attracted most of them (36 %). After a decline in 2020, when the corona pandemic made it challenging to carry out, among other things, physical factory visits, investments in companies in industrial goods and services are back on top as the dominant sector in the buyout segment.
The second-largest sector was consumer (24%), followed by ICT (17%), health services and life sciences (10%), and financials (5%).
Compared with the average for H1 between 2016-20, industrial goods and services, in particular, have experienced substantial growth with an increase of 91 per cent, in addition to health services with an increase of 72 per cent.
After a decline in 2020, when the corona pandemic made it challenging to carry out, among other things, physical factory visits, investments in companies in industrial goods and services are back on top as the dominant sector in the buyout segment.
Compared with the average for the first half of the year over the past five years, industrial goods and services, in particular, have experienced significant growth with an increase of 91 per cent. Companies in health services and life sciences have increased by 83 per cent.
If we look at the land distribution in the buyout segment, investments in Swedish and Danish companies accounted for two thirds. However, there was growth in all markets compared to the average of the period over the past five years:
- Swedish companies attracted the most buyout investments in the first half of the year with a share of more than a third (35%) and a growth of 52 per cent compared to the average.
- Close behind were Danish companies with 31 per cent of the investments. Here there was a growth of a formidable 89 per cent against the average.
- Norwegian companies attracted 18 per cent of the investments, which was 54 per cent higher than the average for the period.
- Finnish companies accounted for a share of 16 per cent. In Finland, growth has been weakest, but it is still at 42 per cent.
Large single transactions
The industrial sector had several of the biggest transactions in the buyout segment in the first half of the year. In addition, we find a bunch of investments in other sectors that stand out in terms of size:
Industrials
- In June, EQT (SE) made an investment in Anticimex. The transaction valued the Swedish pest control specialist at 5.7 billion euros (read more).
- Partners Group (CH) has acquired the Finnish company Parmaco, which rents out educational and kindergarten buildings. The sellers were the PE funds Terra Firma and Metric Capital (both UK), which have been on the ownership side since 2018. Partners Group invests 450 million euros in the company and at the same time values it at 750 million euros (read more).
- In March, Norsk Hydro sold its rolled and recycled aluminium business to KPS Capital Partners (US), which renamed the company Speira. The transaction valued the company at around 1.4 billion euros (read more).
- EQT Infrastructure and Nysnø Klimainvesteringer have joined the ownership side of the Norwegian transport group Torghatten. Torghatten operates ferries, speedboats, buses and air traffic throughout Norway. The transaction valued the company at around 1.1 billion euros (read more).
- CVC Partners (UK) bought 100 per cent of the shares in STARK Group, a company headquartered in Denmark that is the leading distributor of heavy building materials in Northern Europe (read more).
Utilities
- The renowned PE fund KKR (US) was among the investors in the Finnish grid and electricity company Caruna (read more) in March. The Espoo-based company maintains, repairs and builds a weather-resistant power grid for almost 700,000 Finnish electricity customers.
Health care and life sciences
- Nordic Capital (SE) invested in the biotechnology company Leo Pharma. The Danish company produces dermatological products and is valued at 3.2 billion euros, according to Bloomberg.
- Goldman Sachs (US) invested 188 million euros and thus became a majority owner of Advania, a Nordic IT services company based in Stockholm. Via Equity (DK), which joined the ownership side in 2018, will continue as owners. The company is valued at 500 million euros (read more).
Financials
- Stockholm-based Söderberg & Partners, a Nordic player in financial advice and brokerage of insurance, financial products and services, raised 247 million euros from TA Associates (US) in May. The company was also valued at 2.2 billion euros, according to Dagens Industri (read more).
Technology
- HgCapital (UK) invested in Danish Trackunit in March, a SaaS company in the construction industry that collects and analyses machine data in real-time. At the same time, existing owners GRO Capital and Goldman Sachs exited the company (read more).