Polaris sells Twister to trade

The deal saw Polaris make a 5-10x return on investment, according to a source close to the deal. It is among the highest money multiples that Polaris has made on a transaction of this size, the source added.

Polaris sold its shares in Twister to Diversey, the Chicago-based maker of cleaning and hygiene products, after a four-year holding period.

The Denmark-based private equity investor had acquired Twister when it invested in the cleaning firm's former parent company, HTC Sweden, in 2013.

The decision to divest Twister was made a year ago in a deliberate move to sell HTC and Twister in separate transactions, Polaris partner Peter Ankerst told unquote".

Due to the nature of its products, Twister was more relevant in the cleaning sector while HTC fit well in the power tools industry, Ankerst noted.

During the ownership of Polaris, Twister was separated from HTC's floor grinding solutions division. HTC's flooring division, FGS, was subsequently sold to Husqvarna, a Swedish manufacturer of outdoor power tool products, in March 2017.

The separation of the two business divisions was key in successfully developing Twister in the cleaning industry, Polaris said in a statement.

The GP had acquired HTC via its Polaris Private Equity Fund III, which reached €365m for its final close in May 2010. There are four companies left in the fund.

Previous funding
3i backed Twister's parent company HTC Sweden in 2006. The deal included a capital injection of around SEK 100m, and the purchase of shares from existing shareholders. The transaction originated via an auction process and was completed in a couple of months.

Under 3i's ownership, HTC Sweden established subsidiaries in Germany, France and the UK, and expanded the company's presence in Sweden and the US.

Twister was already part of HTC Sweden when Polaris acquired shares in the company in May 2013 in a deal that saw Polaris snap up 3i's 36.5% stake.

During the transaction, 3i exited the firm alongside the company's founders, who held 60% of shares, and the former management, who held the balance. The management team reinvested to secure a stake of 3-5%.

Polaris wholly acquired HTC at the time, with a small minority stake belonging to the management teams. Since selling Twister, it has fully exited the companies.

Company
Established in 2006 and headquartered in Söderköping, Twister is known for its main product, diamond floor cleaning pads. It was the first company to enter the diamond pad market in addition to offering a portfolio of diamond floor care products, according to Polaris.

The firm operates subsidiaries in the US and the UK. Legally, Twister was separated from HTC Sweden in 2017, but has been run as an independent company since 2016. Twister posted a turnover of SEK 115m in 2017.

Headquartered in Söderköping, HTC was founded in 1987. The company produces and sells diamond-based grinding systems for professional flooring in industrial, commercial and public buildings. The firm's product range also includes grinding and polishing machines, and tools and dust extractors.

People
Polaris Private Equity – Peter Ankerst (partner).
Twister – Robert Kreicberg (CEO).

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