Nord Kapital makes first exit from Nord II with Hepro sale

Mikkel Stern-Peltz
24 February 2017

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Norwegian private equity firm Nord Kapitalforvaltning has made its first exit from its second fund, selling mobility products manufacturer Hepro to listed Swedish trade buyer AddLife.

The deal sees AddLife acquire all shares in Hepro and its three subsidiaries: Hepro, Mektron and Hepro Sverige.

AddLife's acquisition is expected to complete by 1 March 2017.

In a statement, Nord Kaptial said the sale of Hepro would return around 2.5x money to Nord II's investors, which include Rothschild, Sparebank1 Nord-Norge and Norwegian government-backed fund-of-funds Argentum.

The exit will be a rare piece of good news for LPs in Nord II, the GP's 2012-vintage vehicle. In January 2016, an analysis by Norwegian publication Nord24 revealed Sparebank1 Nord-Norge's stake in the fund had seen a fall in value of NOK 44m for the year. It also noted the bankruptcy of Nord Kaptial portfolio company Habu Technology and the losses registered by Nord II-owned Rapp Bomex and Rapp Marine.

According to Sparebank1 Nord-Norge's annual report, the bank sold its exposure to Nord II in the second quarter of 2016.

Previous funding
Nord Kaptial acquired a majority stake in Hepro through a management buyout in October 2014, with the company's management investing alongside.

Company
Founded in 1987, Hepro produces mobility products for the disabled and elderly. Its products include electric wheelchairs, support rods, office chairs, hygiene-related products and tables.

The company is based in Roganan in the north of Norway, where it employs a staff of 40. Its most recent financial figures showed sales of NOK 155m.

People
Nord Kapitalforvaltning – Bjørn Hesthamar (partner).