Triton to reap 4x MOIC in Norres Baggerman exit to Nalka

Min Ho
30 March 2023

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Triton is to sell Germany-headquartered industrial plastic hose manufacturer Norres Baggerman to Swedish sponsor Nalka Invest, in a deal that is expected to generate around 4x money on invested capital (MOIC) for the vendor, according to a source familiar with the situation.

Norres Baggerman was put to the market via Houlihan Lokey last year. The business was marketed off an expected FY22 EBITDA of EUR 23m and revenues of EUR 108m, according to Unquote sister publication Mergermarket.

Under Triton's ownership, Norres Baggerman completed three acquisitions and achieved 10% annual growth, increasing sales by more than 170% to well over EUR 100m, according to a statement on the sale.

Last year, it acquired the Netherlands-based Baggerman, a manufacturer and distributor of industrial hoses, couplings and accessories. It also acquired Swedish industrial hose distributor Jarl Elmgren and Italian hose maker and distributor De Bernardi.

Triton acquired Norres Baggerman in 2018 via Triton Smaller Mid-Cap Fund I, which raised EUR 448m in a final close in 2018 against a target of EUR 350m.

Triton is currently deploying its successor Triton Smaller Mid-Cap Fund II, which held a final close on EUR 815m against a target of EUR 600m in 2021.

Nalka typically invests in small- and medium-sized businesses across the Nordic and DACH regions with EBIT of around SEK 50m to SEK 300m (EUR 4.4m to EUR 26.6m), according to its website.

Triton declined to comment.

Company
Norres Baggerman manufactures and provides technical installation of industrial hose systems for end-markets such as agriculture, food and pharmaceuticals, plastics, wood processing, robotics and fluid applications, as well as power engineering. The company has around 400 employees and has a global footprint across Europe, the US and Asia, with six manufacturing facilities and 15 sales offices.

People
Triton - Andi Klein (managing partner and head of smaller mid-cap fund).
Norres Baggerman - Ralf Dahmer (CEO).

Advisors
Vendor - Houlihan Lokey

[Editor's note: The third paragraph has been amended to clarify that Norres Baggerman's sales grew to well over EUR 100m under Triton's ownership.]