Axcel cuts losses in Junckers sale after 10-year holding

The sale represented a loss for all shareholders, which included Axcel, LD Equity 1, and a syndicate of smaller investors.

Despite revenues of DKK 430m in 2013, and staff reductions of around 750 people since the company was taken private 10 years ago, the owners and management had struggled to sustain the company's profitability.

The GP said revenues were down 40% since 2007, due to slow markets after the financial crisis.

Axcel partner Nikolaj Vestgaard said the GP's exit includes new financing for Junckers through a three-year credit facility and a new loan from Axcel itself, to strengthen the company for the future.

Following the sale Junckers will have increased its capital reserves by around DKK 45m, with an equivalent reduction in the company's debt.

This latest divestment from the GP's Axcel II fund leaves only one company, Vital Petfood Group, left in its portfolio. Axcel II was announced in April 2000 and closed on its DKK 2.5bn cap in December the same year.

Previous funding
Axcel took Junckers private in 2004 for around DKK 100m, after the Køge-based company had been struggling financially for a number of years.

The company's share capital was reduced to zero and it was delisted from the Copenhagen Stock Exchange.

Existing investors at the time were invited to invest up to 25% of the DKK 100m, based on their previous shareholdings in the firm, with LD Pension taking up a 7.7% stake through LD Equity 1.

Company
Founded in the 1930's by Flemming Juncker, the company is one of Europe's largest producers of hardwood floors, with more than 450 employees globally. It recorded revenues of DKK 430m last year.

People
Christian Frigast is managing partner at Axcel.

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