Segulah sells NVBS Rail Group to Ratos

The acquisition of Ratatek will form a group with a presence in Sweden, Finland and Norway, Ratos said in a statement. NVBS’s founders are to hold almost a quarter of the shares in the business following the deal.

The acquisition of both companies amounts to SEK 1.07bn (EUR 103.1m) on a debt-free, cash-free basis, according to the same statement from Ratos. The combined companies generated revenues of SEK 978m (EUR 94.6m) in 2021, with adjusted EBITDA of SEK 113m (EUR 10.9m).

The purchase price equates to an EBITDA multiple of 9.4x, according to the same statement.

A source familiar with the situation told Unquote that Ratatek posts EBITDA of around EUR 3m, implying that NVBS itself posts EBITDA of almost EUR 8m. Ratatek was valued at a lower EBITDA multiple than NVBS, they added.

Segulah acquired a majority stake of around two-thirds in NVBS in April 2020, deploying equity via Segulah V, which held a final close in April 2015 on SEK 2.4bn (EUR 260m). The deal marked the 10th investment from the fund, which invests in Nordics-based companies with enterprise values of up to SEK 1bn (EUR 97m) in the B2B services, industrials and technology sectors.

The GP has scored returns of more than 60% IRR on the exit following a two-year holding period, the same source said.

Segulah said in a statement that the company has achieved 30% CAGR from 2019-2021. The company made three add-ons during the investment period and also experienced significant organic growth.

The GP invests in line with three core themes: modernisation and automation of industry; digital business efficiency; and smart urbanisation and infrastructure renewal. The firm launched its latest fund, Segulah VI, in 2021, according to its website. The fund made its first investment in September 2021, according to a statement from the GP, acquiring a majority stake in electrical services business Levinsgruppen.

Listed investment firm Ratos invests in Nordics-headquartered companies that it believes can become market leaders in their sectors, according to its website. It targets profitable businesses that have the potential to benefit from Ratos’ network and future add-ons.

Segulah declined to comment. NVBS and Ratos had not responded to a request at the time of publication.

Company
Founded in 2012 and headquartered in Solna, NVBS Rail Group specialises in the maintenance, upgrading and construction of railway infrastructure. The company posted revenues of SEK 330m (EUR 30m) at the time of its acquisition by Segulah.

Ratatek was founded in 2008 and is headquartered in Nurmijärvi in Finland. The company designs, installs and maintains high voltage electrical systems for railways.

People
Segulah – Marcus Planting-Bergloo (managing partner).
NVBS Rail Group – David Skalin (CEO).

Advisers
Vendor – ABG (corporate finance); Gernandt & Danielsson (legal).

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• Topics
• Exits
• Buyouts
• Nordics
• Industrials
• Segulah
• Sweden
• Finland
• Ratos Holding