EQT exits VTI Technologies

The deal, which is expected to close during the first half of 2012, gives the company an enterprise value of €195m.

EQT III initially acquired 100% of VTI from Breed Technologies in June 2002. The company employed 350 staff and directed 90% of its sales to the automotive industry, resulting in an expected €60m turnover for that year.

Over the years, EQT supported the company with an experienced board of directors and by investments in product research and development. VTI continued developing products for the automotive and medical industries, and expanded its business to consumer electronics, which according to EQT led to a 75% increase in sales.

In 2009 the company saw negative operating profits and a fall in EBITDA to €3.1 from €14.3m in 2007. Following a recapitalisation by EQT, the company became profitable again and EBITDA returned to €11.9m in 2010.

Previous funding
The June 2002 acquisition of VTI was supported by debt financing from Nordea and mezzanine capital from Eqvitec Partners.

Company
VTI Technologies specialises in the design and manufacture of silicon-based capacitive sensors for measurement of acceleration, inclination, shock, vibration, and angular rate. Based in Vantaa, Finland, with offices in China, Germany, Japan, and the US, the company has production in Finland, with an external supply chain in Asia. Established in 1991, it employs around 600 staff and recorded a €75.8m turnover in 2010.

Murata Manufacturing, established in 1944 and based in Kyoto, Japan, designs and manufactures ceramic-based passive electronic components and power supply modules. It is listed on stock exchanges in Japan and Singapore and has recorded annual revenues of ¥618bn.

People
Vesa Koskinen, director, and Teemu Alahuhta, associate, worked on the deal for EQT. Markku Hirvonen is the president and CEO of VTI Technologies.

Advisers
Vendor - Danske Bank Corporate Finance (Corporate finance); DC Advisory Group (Corporate finance); Hannes Snellman (Legal); KPMG (Financial due diligence).

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