Nordic Capital exits Nefab

Mikkel Stern-Peltz
05 September 2014

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Nordic Capital has divested its stake in Swedish packaging company Nefab to the original founders and current co-owners, the Nordgren/Pihl family.

The deal will see Nordic Capital sell its entire 60% stake in the holding company NPNC Interessenter to Nordgren/Pihl, who held 40% of the shares prior to the deal.

Nefab was taken private by Nordic Capital and the Nordgren/Pihl family in August 2007, when it was bought through the joint holding company, NPNC Interessenter, for SEK 1.184bn. Nordic Capital invested via its Fund VI vehicle.

Offering SEK 97 per share at the time, the de-listing was financed by equity, shareholder loans, and a debt package supplied by Handelsbanken.

Nordic Capital communications manager Katarina Janerud told unquote" the GP felt it had achieved the goal it had set at the beginning of its investment.

Nordic Capital had been looking at a range of exit options, including a possible re-listing on the Stockholm stock exchange, but through talks with the Nordgren/Pihl family, it was agreed private ownership was the best option for the company.

Over the course of Nordic Capital's ownership, Nefab increased sales from SEK 2.3bn to around SEK 3bn, and substantially expanded its international operations, particularly in the US and China.

Company
Founded by the Nordgren/Pihl family in 1949, Nefab delivers packaging services to industrial groups, with a particular focus on telecoms, energy, aerospace, vehicles and healthcare equipment.

Headquartered in Jönköping, Sweden, the company employs 2,600 people and had sales of approximately SEK 3bn in 2013. According to Nordic Capital, Nefab's EBITDA was SEK 271m in 2013.

The business was listed on Stockholm's stock exchange between 1996 and 2007.

People
Hans Eckerström is a partner at Nordic Capital, a member of the Nefab board, and led the deal for the GP. Ing-Marie Nordgren is the daughter of the founder of Nefab, and represented the Nordgren/Pihl family. David Mörk is the CEO and president of Nefab.

Advisors
Equity – Navigo Partners (M&A).