Palamon sells Espresso House for 3.4x money

The returns were generated for Palamon European Equity II, which closed in 2006 and has realised total returns of 2.6x on invested companies so far. The Espresso House sale is Palamon's eighth exit from the vehicle.

Herkules sourced capital for the deal from Herkules Private Equity Fund III, which closed on NOK 8bn in 2008.

During Palamon's holding of Espresso House, the company's EBITDA increased more than tenfold, while revenues grew 30% annually. The fund acquired Espresso House in May 2006, after approaching the owners in the previous year.

Company
Espresso House is a Swedish chain of coffee houses, with 120 outlets across 25 Swedish cities. Founded in 1996 in Lund, the company now employs 900 people and generates annual revenues of SEK 560m.

People
Partner Dan Mytnik led the exit for Palamon. Partner Sverre Flåskjer represented Herkules in the transaction. Adriano Capoferro is CEO of Espresso House. 

Advisers
Vendor – Nordea Corporate Finance (Corporate finance); Allegra Strategies (Commercial due diligence); PricewaterhouseCoopers (Financial due diligence, tax); Mannheimer Swartling (Legal).

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