Altor, Equistone, Polaris among bidders for Troldtekt

Auri Aittokallio and Carl-Johan Kullving
18 November 2021

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Troldtekt, a Danish manufacturer of acoustic panels, is in an advanced sale process led by Clearwater International, with Altor, Equistone and Polaris among the second-round bidders, sources said.

Final bids are expected mid-December, two sources familiar with the situation said, adding that the bidder pool also includes some strategic players and impact funds.

The family-owned company is marketed based on 2021 forecast EBITDA of around DKK 150m (EUR 20.1m), four sources said.

Troldtekt reported EBITDA in 2020 of DKK 110m, an increase from DKK 83m in 2019. The company recorded DKK 406m in revenues for 2020, up from DKK 335m in 2019, according to its annual report.

The Danish construction industry, adjacent to Troldtekt's business, was booming in 2020 and is expected to have maintained the pace during 2021, management commented in the annual report. The Danish government increased spending on public construction during 2020 and management expects that level to be unchanged during 2021, the report added.

Potential buyers and lenders are looking into Troldtekt's exposure to the construction market, since the next owner needs to be comfortable with the sector's cyclicality, one of the sources said, adding that, since the company wants to increase its production capacity to grow further, there will be a significant capex element to consider, too.

However, given Troldtekt's ESG credentials, thanks to its low-carbon-footprint wood-based products, buyers see it as well-aligned with the current sustainability trend, making it an attractive target, another source said.

Troldtekt, founded in 1935, develops, designs and manufactures acoustic panels used to improve indoor climate. It is headquartered in Tranbjerg, Denmark, and has subsidiaries in Sweden and Germany, according to its website, with 140 employees.

Around 81% of Troldtekt's 2020 revenues came from the Nordic markets and 19% from the rest of the world, according to the annual report.

Altor, Equistone and Clearwater declined to comment. Polaris and Troldtekt did not respond to requests to comment.