Altor makes 30% IRR on Piab exit to EQT

Altor partner Bengt Maunsbach told Swedish financial news website DI.se the exit was one of the GP's most successful, with Altor Fund II reaping a 30% IRR on the investment in Piab over a 10-year holding period.

According to market sources, the deal value was in excess of SEK 3bn, with EQT having faced competing bids from other Nordic GPs, US and Asian investors.

EQT made the acquisition through EQT VII, its 2015-vintage €6.75bn vehicle, having followed Piab for a few years prior. The company's founders, the Tell brothers, will re-invest part of their proceeds from the sale alongside EQT, taking a stake of less than 10%.

A debt package for the SBO will be provided by a club of Nordic banks.

The deal brings to an end nearly a decade of ownership for Altor, which acquired a majority stake in Piab in July 2006, investing with the Tell brothers.

Under the GP's ownership, Piab more than doubled revenues and quadrupled its EBIT, according to Altor.

Company
Founded in 1951, Piab is a manufacturer and developer of industrial vacuum technology, such as vacuum ejectors, suctions cups and vacuum conveyors.

The company's products have applications across industries such as food, automotive, packaging and pharmaceuticals. Piab is projected to have revenues around SEK 700m in 2015, with EBIT of SEK 200m.

People
Partner Bengt Maunsbach represented Altor, while EQT partner Harry Klagsbrun lead the deal for the acquirer. Peter and Jacob Tell are the founders of Piab, and Anders Lindqvist is the company's CEO.

Advisers
Vendor – Citigroup Global Markets (M&A); SEB Corporate Finance (Corporate finance); Mannheimer Swartling (Legal); EY (Financial due diligence).

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• Topics
• Exits
• Buyouts
• Nordics
• Industrials
• Altor
• EQT
• SEB
• Citigroup
• Mannheimer Swartling
• EY (Ernst & Young)
• Sweden