EQT sells Piab to Patricia Industries in SEK 6.95bn deal

Nicole Tovstiga
30 April 2018

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EQT Partners has sold its global industrial automation company Piab to Patricia Industries for an enterprise value of SEK 6.95bn, marking the first exit of a portfolio company in its seventh buyout fund.

The deal ends a holding period of two years for EQT after the GP acquired the company in December 2015 via its EQT VII fund.

Under EQT's ownership, Piab accelerated its global growth through investments in innovation and product development, as well as add-on acquisitions.

EQT was said to be looking to dispose of the asset on the back of strong performance, and was expected to fetch EV multiples in the region of 21-23x its €40m EBITDA, according to Unquote sister publication Debtwire.

Sponsors interested in the auction were said to be expecting a leverage multiple that matches the high EV multiple, the report added.

Unquote sister publication Mergermarket reported that the auction was part of a dual-track process, with Carnegie and SEB advising EQT on a potential exit via the stock market.

The transaction is expected to close in Q2 2018, subject to regulatory approval.

Previous funding
Altor acquired Piab from the founding Tell family in July 2006 via its Altor Fund II. The private equity house was attracted to the deal because of Piab's technology base and growth potential. SEB arranged the acquisition financing for the transaction with a package including both senior and mezzanine debt facilities, according to Unquote Data.

EQT bought Piab from Altor in December 2015, in what was understood to be one of the Altor's best ever exits, with Altor Fund II reaping a 30% IRR on the investment in Piab over a 10-year holding period. The deal value was in excess of SEK 3bn, with EQT having faced competing bids from other Nordic GPs, as well as US and Asian investors. EQT made the acquisition through EQT VII, its 2015-vintage €6.75bn vehicle, having followed Piab for a few years prior.

Company
Founded in 1951 and headquartered in Täby, Piab is a manufacturer and developer of industrial vacuum technology, such as vacuum ejectors, suctions cups and vacuum conveyors.

The company's products have applications across industries such as food, automotive, packaging and pharmaceuticals.

The company posted a revenue of SEK 1.2bn with adjusted EBIT of SEK 330m in the 12 months to March 2018.

People
EQT Partners – Harry Klagsbrun (partner).
Piab – Anders Lindqvist (CEO).