Preato sells Machinery to portfolio company YE for €18.75m

Preato Capital sold its stake of almost 94% in the deal, which gives Machinery an enterprise value of €26.159m. YE has wholly acquired it for an entry multiple of 4-8x EBITDA.

The combination of YE and Machinery will create a group of 300 employees with operations in Russia and CEE.

Preato acquired a 78.48% stake in YE in August 2019 for €18.76m. The firm did not provide any extra equity for the acquisition of Machinery by YE. OP Corporate Bank will provide a bank loan of €23.5m for the acquisition.

The deal is subject to the resolution of an extraordinary general meeting from YE.

Previous funding
Preato acquired a majority stake in Machinery in January 2017. Preato is a privately owned invested company and so did not use institutional funds for the acquisition.

Company
Machinery, founded in 1911, is a Finland-based technical wholesaler and service provider in the metalworking, construction machinery and power generation sectors. Headquartered in Helsinki, the company employs 90 people and generated sales of €52.2m in 2019. It operates offices in Tampere and Joensuu. The company has an EBITDA of less than €10m.

People
Preato Capital – Martti Yrjö-Koskinen, Simon Hallqvist, Magnus von Schoultz (partners).

Advisers
Vendor – Castrén & Snellman Attorneys (legal).
Acquirer – Carnegie (corporate finance); Borenius Attorneys (legal); PwC (financial due diligence).  

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