Litorina reaps 10x multiple in LGT sale to Axcel

Litorina Kapital has sold its stake in LGT, a logistics and transport company specialising in furniture, to private equity house Axcel, reaping a 10x money multiple on the initial investment. In the current environment, a secondary buyout is a rare occurrence, and from the onset a trade sale was considered the most likely option. But as markets crashed, listed industrial buyers were forced to pull their bids. Litorina senior partner Jorgen Ekberg explains: "We started the process in the first half of 2008, and although we now have closed the deal with satisfactory returns, we did accept a lower price than we would have a year ago."

Indeed, during Litorina's holding period profits tripled through a combination of organic growth and acquisitions. Litorina formed the company in 2005 after having acquired LBC in Sweden and sister company GM-ITM in Denmark from DHL, in a deal valued at approximately SEK 200m (see page 40).

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