Novo takes 24.9% of Cinven's Envirotainer

The co-investment was announced in partnership with Cinven, two months after the initial buyout was inked in July 2018.

Cinven drew capital from its sixth fund to wholly acquire the business from AAC Capital Partners for an enterprise value of around €1bn. Novo Holdings is an LP in the fund Cinven used for the acquisition.

Novo said it identified Envirotainer due to its market position and innovative product offering. It expects a rise in the biopharma sales market in combination with tightening regulations for transporting these products.

Both Cinven and Novo will support the company's growth by developing its technology and expanding its fleet, according to a statement.

Novo Holdings has a long term mandate for value creation, allowing its companies the time needed to realise operational improvement and value realisation. As such, it has the opportunity to remain as long-term owners after Cinven exits the company, a spokesperson for the firm told Unquote.

In addition to investing in private equity and venture capital funds specialising in life sciences, Novo also makes direct investments. At the end of 2017, Novo held majority or minority stakes in 80 life sciences companies.

No synergies have been identified between Envirotainer and Novo's other portfolio companies, the spokesperson said.

Previous funding
Swedish industrial development fund Industrifonden acquired Envirotainer from a private vendor in 2004, and sold it to AAC in a secondary buyout in 2010. The company reported a turnover of SEK 335m and SEK 90m profit In 2009.

Company
Envirotainer makes and leases temperature-controlled containers to the biopharmaceutical industry. The business is headquartered in Stockholm and employs 300 people. It operates from regional centres in Stockholm, Frankfurt, Dallas and Singapore, and has more than 5,500 containers. The business was sold to Cinven on the basis of a 2018 EBITDA figure of SEK 725m, according to Unquote Data.

People
Novo Holdings – Samir Kamal (senior director).
Envirotainer – Michael Berg (CEO).

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