IK to buy Renta Group from Intera

Renta's management and employees are reinvesting and will participate in the buyout alongside IK, according to a statement.

IK is investing via IK IX, which held a final close in May 2020 on EUR 2.85bn. The fund acquires businesses with enterprise values of EUR 50m-500m, deploying equity tickets of EUR 50m-150m. The vehicle has now made nine investments, seven of which were made in 2020, according to Unquote Data, with the vehicle expected to back 18 companies in total.

Intera initially attempted to sell a minority stake in Renta in 2019, Unquote sister publication Mergermarket reported in May that year, with the aim of raising funds for Renta's future growth. At the time, the GP owned a stake of around 60% in the company. Renta was expected to post sales of more than EUR 190m and EBITDA of more than EUR 70m that year, Mergermarket reported, citing one source who said that the company could be valued at EUR 300m.

Finnish publication Talouselama reported in March 2021 that Renta could list following significant organic growth in 2020. The report also cited fellow Intera portfolio company Kotikatu, which provides real estate services, as a potential IPO candidate.

Intera formed Renta in 2015 via the merger of three smaller Finland-based equipment rental businesses: scaffolding rental business Telinekymppi, Kehä-Kone, and Jasoca.

At the time of the exit, the GP held its stake in the company via its 2011-vintage, EUR 200m Intera Fund II and its 2016-vintage, EUR 250m Intera Fund III vehicles. During the investment period, the company made several add-ons and opened greenfield sites, as well as investing in digital technology.

The GP generally invests in Finland-based businesses with enterprise values of EUR 20m-100m and sales of EUR 10m-200m. Intera is now deploying equity via Intera Fund IV, which held a final close in June 2021 on EUR 335m.

Company
Formed in 2015 and headquartered in Vantaa, Renta provides construction machinery and equipment rental services for businesses. The company's portfolio includes machines, tools, scaffolds and weather protection systems. It also provides installation and dismantling services, as well as temporary plumbing and heating, ventilation and cooling systems.

The company posts turnover of almost EUR 300m and employs 1,000 staff in Finland, Sweden, Norway, Denmark and Poland. The company posted EBITDA of EUR 79.7m and revenues of EUR 210m in 2020, versus EBITDA of EUR 72.6m and revenues of EUR 184.1m in 2019, according to its latest financial report.

People
Renta Group – Kari Aulasmaa (CEO).
IK Partners – Alireza Etemad (partner).
Intera Partners – Christoffer Zilliacus (partner).

Advisers
Vendor – Danske Bank (corporate finance); McKinsey (financial due diligence); KPMG (financial due diligence); Hannes Snellman (legal).
Equity – Bain & Company (financial due diligence); EY (financial due diligence, tax); Roschier (legal).

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• Topics
• Buyouts
• Exits
• Nordics
• Industrials
• Finland
• Intera Equity Partners Oy
• IK Investment Partners
• Secondary buyout