Nefab (Sweden) - Oct 2007

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01 October 2007

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NPNC Interessenter, a company jointly owned by Nordic Capital and the Nordgren/Pihl family, has made a public cash offer for the shares in Nefab AB, a company that delivers complete packaging solutions to international industrial groups, to de-list the company for a total value of SEK 1.184bn (E128m). The offer was SEK 97 per share, which corresponds to a 39.1% volume-weighted average share price on the OMX Nordic Exchange over the past month. The transaction is expected to complete on 3 October. After the deal, NPNC will hold 90% of the shares. Nordic Capital will hold 60% of NPNC, while the 40% will be owned by the shareholding family.

Debt structure

The offer will be financed by equity, a shareholders loan and a debt package supplied by Handelsbanken.

Company

Nefab was founded in 1923 when Sigurd Nordgren started a carpentry workshop in Ovanåker, Sweden. In 1949, brother’s Hans-Elov and Sven-Erik Nordgren started to concentrate production on breadboxes made of plywood and steel strip, and the traditional ‘Nefab box’ was designed. In 1982, the company underwent a generation shift and Ing-Marie Nordgren took over from her father, and Jochum Phil (her husband) became the CEO. Nefab was listed in 1996 and at the same time the spouses ended their managerial role in the company, but remained as members of the board and as owners. International expansion, primarily into the Asian and Eastern European markets, has become the primary focus, while still retaining the Nefab culture. Nefab has branches in Europe, North and South America and Asia. Posted sales last year of SEK 1.9bn. The Nefab share has been listed on OMX Nordic Exchange, in the mid-cap category. The company is headquartered in Jönköping and has around 200 employees.

People

Ulf Rosberg, partner at Nordic Capital, was involved in the transaction and will take a seat on the board of directors

Advisers

Company - Erneholm & Haskel, (Financial Due Diligence)Equity - SEB Enskilda, (Financial Due Diligence)Equity - Vinge, (Legal)