Axcel acquires Cimbria from EQT

Although the value of the deal has not been disclosed, the equity value was said to be in the region of DKK 500-600m. Equity for the transaction has been provided by the Axcel IV fund, which has total committed capital of DKK 3.6bn.

The investor acquired the company after winning an auction process, run by Handelsbanken, which attracted interest from other private equity and trade buyers. Axcel is looking to support the company's growth by expanding into Eastern Europe and Russia. The investor also believes that Cimbria has the potential to grow through select add-on acquisitions.

The transaction is expected to close by the end of August 2011, following approval of relevant competition authorities.

Debt
The debt ratio was said to be around 50% and was provided by Nordea.

Previous funding
The EQT Opportunity Fund agreed to acquire a majority of the shares in Cimbria AS from the founding family in 2007. Previous owners Sven Toftdahl Olesen and Ole Toftdahl Olesen continued to own a significant stake and maintain key positions in the company. The investor has supported the integration, restructuring and streamlining of the company. Since the acquisition, sales have grown by more than 30% and its EBITDA has doubled.

A return on investment has not been disclosed.

Company
Cimbria produces equipment for the processing, handling and storage of cereal and seed corn. The company offers project design and process control, as well as development, manufacture and installation of individual machines, systems and plants.

Established in 1947 and headquartered in Thisted, Denmark, the company employs approximately 600 people and generated revenue of DKK 700m with operating profit of DKK 70m in 2010.

People
Per Christensen was responsible for the transaction for Axcel.

Advisers
Equity – Ernst & Young (Financial due diligence); Bruun & Hjejle, Christian Schow Madsen (Legal).
Vendor – Handelsbanken Capital Markets (Corporate finance); Kromann Reumert (Legal); Deloitte (Financial due diligence); KPMG (Financial due diligence).

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