Triton sells Eleda Group

Harriet Matthews
17 December 2019

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Triton has sold its stake in Sweden-based infrastructure service Eleda Group to the company's management and largest shareholders, including Johan Halvardsson and Peter Condrup.

The GP stands to make a gross return of 2.5x money and a 45% IRR on the sale.

Eleda is made up of Swedish industrial companies Akeab, Kewab, Mark & Energibyggarna and Salboheds Bygg & Anläggningstjänster.

Triton initiated the buy-and-build by acquiring a stake in Anlaggning & Kabel Entreprenad i Malmo (Akeab) in 2017, along with its management, who continued to own a significant stake in the company. The GP invested from Triton Smaller Mid-Cap Fund, which held a final close in July 2018 on €448m. The vehicle invests €20-50m in smaller mid-cap DACH and Nordic companies with enterprise values of €25-100m in the industrial, business, consumer and healthcare services sectors.

Unquote sister publication Mergermarket reported in July 2019 that Eleda could be headed for an IPO in the next 6-12 months, citing chairman Mats O Paulsson.

Previous funding
Priveq bought a 58% stake in Akeab in September 2015, investing from its 2011-vintage vehicle Priveq Investment Fund IV, which closed in May 2011 on SEK 1.8bn.

Triton and Akeab's management bought the company from Priveq in June 2017. Triton bolted on Kewab in November 2017 and Mark & Energibyggarna in April 2018. Eleda bought Vastkustens Anlaggnings in June 2019 and Salboheds Bygg och Anlaggningstjanst in July 2019.

Company
Eleda was founded in April 2017. The company is made up of pre-existing Swedish regional companies Akeab, Mark & Energibyggarna, Kewab and Salboheds Bygg och Anläggningstjänst. The group provides excavation services and civil works for infrastructure projects, such as road-building and power network projects. Its client base mainly consists of public companies.

It reported sales of SEK 3bn (€288m) in the year to September 2019, compared with 2018 sales of €250m. It is headquartered in Stockholm and has a headcount of 800.

People
Eleda Group – Johan Halvardsson (CEO).
Akeab – Peter Condrup (managing director).
Kewab – Fredrik Larsson (managing director).