Herkules exits Harding to Palfinger

Mikkel Stern-Peltz
01 June 2016

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Norwegian GP Herkules Capital has reaped an IRR in the mid-teens on the exit of Seimsfoss-based lifeboat maker Harding to Austrian trade buyer Palfinger.

Herkules senior partner Morten Blix told unquote" the IRR on the investment in Harding was in the mid-teens over three years, pointing out that this was despite the Oslo Oil Service composite stock index being down more than 60% over the same period. The partner said he could not disclose any financial details about the transaction, though he confirmed there had been no structured sales process for the asset.

Local media estimates the deal size to be around NOK 750m EV and Blix told Dagens Næringsliv his firm had invested approximately NOK 500m in Harding.

The deal sees Herkules exit its stake in holdco Herkules Harding Holding alongside management, with Palfinger assuming 100% of the holding vehicle under its group structure.

Harding is the largest ever bolt-on for Palfinger, who claims it will nearly double the group's business volume post-acquisition.

Previous funding
Herkules became the owner of Harding in 2013, tapping its 2008-vintage NOK 6bn Herkules Capital Fund III to acquire Umoe Schat-Harding and Noreq, which were subsequently merged under the Harding moniker.

Company
Headquartered in Seimsfoss near Bergen, Harding is a Norwegian manufacturer of lifeboats, davits, hooks, winches, cruise tenders and rescue boats.

The company also provides maintenance and other services related to its main products.

Harding operates in 16 countries, employing a staff of 800 and generating €140m of revenues.

People
Herkules Capital – Morten Blix (senior partner).
Harding – Styrk Bekkenes (CEO).