Vaaka Partners exits Viafin

The co-investors and minority shareholders in Viafin after Vaaka's exit are Finnish family companies.

Vaaka bought the company in 2006 with equity from its Promotion Equity I fund, which was launched in 2003 with a target of €35m. After the buyout by Vaaka, the board was replaced immediately, and the management within 18 months of the acquisition.

Vaaka usually has a holding period of four years; the nine-year ownership of Viafin was a result of the financial crisis, according to partner Ilkka Pentikäinen. The GP waited for the company to recover before initiating the sales process.

The Finnish PE outfit was approached by potential private equity and industrial buyers, but opted for a sale to the existing management in the end, mostly due to price, but also because of the management's familiarity with the company.

Pentikäinen, who was a member of Viafin's board before the exit, stresses the company's good performance during the financial crisis.

In 2009/10, Viafin's turnover went down almost 75%, but the company kept a positive EBITDA, gaining new clients and diversifying its range of products.

By 2011, Viafin was growing again, and Pentikäinen says it was the only company in its sector to post positive figures during the financial crisis.

Previous funding
Vaaka's exit comes nine years after the GP acquired the business in a management buyout. The transaction was leveraged less than 40%, with Nordea acting as debt provider.

The deal was sourced proprietarily; Vaaka scanned the market and found Viafin with the help of a consultant.

In 2007, Vaaka bought West Welding as an addition for the Viafin portfolio. Today, the group comprises three companies.

Company
Founded in 1968 and based in Espoo, Viafin is a process industry supplier that specialises in the manufacture of pulp towers, pressure vessels and industrial piping assemblies.

The company serves customers in the energy, pulp & paper and processing industries in Finland, Sweden and Estonia. Viafin has an approximated annual turnover of €60m and employs 300 people.

People
Marko Sipola is the CEO of Viafin. Ilkka Pentikäinen is a partner at Vaaka.

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• Vaaka Partners Ltd (Formerly Pohjola)