Altor-backed Nimbus Boats goes under

Sonnie Ehrendal
09 July 2012

Tweet
Facebook
LinkedIn
Google plus
Send to

Altor Equity Partners portfolio company Nimbus Boats has filed for bankruptcy.

It is understood the company, which reportedly has amassed around SEK 500m of debt following a persistent decrease in demand, was forced into bankruptcy after creditor DNB cancelled its credit line.

Altor was unavailable for comment.

Altor acquired Nimbus Boats in 2006, at the time planning to exit via IPO. It planned to grow the company by further penetrating existing markets, developing new models and increasing exports.

By the time of acquisition, Nimbus generated an EBITDA of SEK 85m from a SEK 800m turnover. Annual sales figures had grown by 15% in the previous six years, and margins were reported as stable and high.

When the global financial crisis hit, demand for leisure boats plummeted, Altor partner Fredrik Strömholm told a local newspaper. He explained that efforts to restructure the company led to negative cash flow, adding to existing debt. The GP reportedly made capital injections almost equal to its initial equity investment, but this was not sufficient to counter the declining demand for boats.

Law firm Lindahl has been appointed administrator of Nimbus Boats Holding, including subsidiaries Nimbus Boats, Nimbus Produktion i Mariestad, Storebro Bruks, and Ryds Båtindustri.

Altor took a 60% stake in Nimbus Boats in March 2006. Although the value of the deal was not disclosed at the time, Altor is believed to have invested equity worth around SEK 500m, including subsequent capital injections, from the Altor 2003 Fund. Industrial investor Viamare Invest is thought to have injected some SEK 150m over the years. The original buyout was supported by senior and mezzanine debt facilities from DNB (then DnB Nor).

Nimbus Boats, founded in 1977, manufactures leisure boats. Headquartered in Gothenburg, Sweden, and with production in Vimmerby, Tingsryd and Mariestad, the company employs around 200 staff and has been operating at a loss over the last three years.

Altor wrote off another portfolio company from its 2003 fund in April last year, as creditors Nordea, DNB, and HSH Nordbank took over Relacom in a debt-for-equity swap.