HVD Partners sells Solifos to trade

The sale generated a money multiple of more than 9x and an IRR of 135%, according to a statement.

HVD acquired Solifos in a carve-out in April 2018; the company was formerly the fibre-optic systems division of Brugg Cables. During the investment period, the GP supported the company in returning to profitability through initiatives including shifting its focus to higher margin products.

According to HVD’s website, Solifos initially reported an EBITDA margin of -15%, but was returned to profit within six months and now reports an EBITDA margin of 10%.

Zurich-headquartered HVD Partners generally acquires non-core, underperforming assets from vendors including corporates, sponsors and private lenders, specialising in carve-outs and turnaround deals.

Company
Solifos supplies fibre optic cables and related systems. The applications of its cables include sensing of temperature, stress vibration and acoustic, as well as in the telecommunications and defence industries.

The company is headquartered in Windisch and was established as an independent entity in 2018, although its former parent company Brugg Cables traces its roots back to 1896. It has fewer than 50 employees, according to LinkedIn.

People
HVD Partners – Jouni Heinonen (managing partner).
Solifos – Nils Kupschke (CEO).
NBG – Mark Bauer (CEO).

Advisers
Vendor – Bär & Karrer (legal); Humatica (corporate finance).

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