BWB converts DKK 62m of loans to equity in Hydratech

BWB – formerly Odin Equity Partners – converted shareholder loans to equity, increasing its 51% stake by buying out founder Bent Sørensen. The GP owns around 70% of shares in Hydratech following the transaction, with investment company AVN Gruppen and management holding the balance.

In addition to the shareholder loan conversion, Hydratech extended its credit facilities and secured additional financing.

As part of the restructuring, Rasmus Sandorff Jacobsen, the former director and head of restructuring and turnaround deals at Deloitte, joins Hydratech's management as CFO. His appointment follows that of John S Dueholm as chair of the board.

In a statement, BWB said it had fired around 120 people across the organisation and reduced fixed costs by 25% as part of its efforts to return to profitability. According to publicly available information, Hydratech lost money in the five financial years to July 2016.

Previous funding
In August 2008, Odin acquired a 51% stake in Hydratech through a €47m management buyout.

Company
Hydratech is a designer and manufacturer of hydraulic components headquartered in Silkeborg.

The company was founded in 1975 and provides components to the wind energy and oil & gas industries. It had revenues of DKK 550m in 2016, according to a statement by BWB.

People
BWB Partners – Esben Bay Jørgensen (partner).

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• Topics
• Refinancing
• Industrials
• Nordics
• BWB Partners
• Denmark
• Refinancing
• Debt-for-equity