Bridgepoint Development Capital to exit KGH Customs Services to trade

Eliza Punshi
06 July 2020

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AP Moller - Maersk has entered into an agreement to wholly acquire KGH Customs Services, a provider of trade and customs management in Europe, fromТ Bridgepoint Development Capital (BDC) and other shareholders for SEK 2.6bn ($279m).

The deal value reflects an EBITDA multiple of 16.3x.

AP Moller – Maersk said in a statement that the combined EBITDA of the two companies is expected to amount to approximately SEK 50-75m ($5.4-8m)

BDC owned an 88% stake in KGH, having acquired it from Procuritas in 2013. The Swedish company has since grown through add-on acquisitions and expanded its geographical footprint across Europe.

The transaction is subject to customary regulatory approvals.

KGH in 2019 generated revenues of approximately SEK 890m in 2019, a recurring EBITDA of approximately SEK 160m – an EBITDA margin of approximately 18%.

Previous funding
In November 2013, BDC acquired KGH from Procuritas. At that time, KGH reported revenues of SEK 500m (€58m).

Company
Founded in 1963 and headquartered in Gothenburg, KGH is a specialist customs service helping to improve trade performance, operational efficiency, risk management and customs duty control. The company currently operates in 12 countries across Europe, employs 775 people and serves 25,000 customers each year.

People
Bridgepoint Development Capital – Johan Dahlfors (partner).
KGH Customs Services – Lars Börjesson (CEO).

Advisers
Vendor – Carnegie (corporate finance); PwC (financial due diligence); Cederquist (legal).