Epiris to acquire Diamorph

Financial details of the transaction remain undisclosed, though Unquote sister publication Mergermarket reports that the deal values the business at SEK 1.4-1.5bn.

Latour will sell its 28.2% stake in the company for SEK 290m, following a six-year holding period.

Epiris is currently investing from £821m fund Epiris II, which held a final close in October and is the firm's first vehicle as an independent fund manager. The fund primarily invests in UK companies and writes equity cheques of £40-150m for businesses with enterprise values of up to £500m.

Prior to the latest deal, Epiris II had made four acquisitions: auction house Bonhams, country club operator The Club Company, the UK publishing division of Time Inc and substrate manufacturer Portals De La Rue.

The transaction is scheduled for completion by the end of January 2019.

Previous funding
Latour first invested in Diamorph in 2012, and provided SEK 164m of equity funding throughout its holding period.

Company
Founded in 2003 in a spin-out from Stockholm University, Diamorph is a manufacturer of industrial materials designed for high temperatures, chemical stability and fire protection. Its products are used in the building of ships and freight trains, renewable energy generation and in manufacturing machinery for the production of ceramic tiles, glass and aluminium plate.

The group also comprises UK-based Tenmat and Czech Republic-headquartered Diamorph Hob Certec; it has sales offices in four additional countries. Diamorph exports its products to 60 countries and has a total headcount of around 270 employees.

People
Epiris – Alex Fortescue (managing partner); Charles Elkington (partner); Pamela Brent (investment manager); Aaron Atwal (investment associate).
Latour – Anders Mörck (chief financial officer).
Diamorph – Gordon MacLeman (CEO).

Advisers
Equity – Roland Berger & Partners (commercial due diligence); PwC (corporate finance); Ropes & Gray (legal).

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