Credo Partners partially exits Lönne Holding

Lönne Holding consists of two main businesses organised in separate subsidiaries: Lönne Scandinavia and Lönne Service.

Brammer is a provider of products and services for machine producers (OEMs) and machine users (MROs).

Following the acquisition of Lönne Service, Credo Partners and founder Terje Lønne sold all shares in Lönne Holding to listed British company Brammer. Prior to the deal, Credo Partners and Terje Lønne each owned 50% of Lönne Holding.

Brammer acquired Lönne Holding for an initial cash consideration of NOK 190.1m, together with the assumption of net debt estimated at NOK 188.1m on completion. In addition, a deferred cash consideration of up to NOK 80m is payable based on a multiple of the increased EBITDA over set targets for the years 2014, 2015 and 2016.

The acquisition will be financed via Brammer's existing facilities. The deal is expected to complete by mid-January 2014. Brammer expects the deal to enhance its earnings from 2014 onwards, before amortisation of intangible assets and exceptional costs.

Ole Jacob Myre will continue as CEO of Lönne Scandinavia following the transaction, and Terje Lønne will continue as a director in the business.

Lönne Scandinavia and Lönne Service will continue to cooperate closely within the industrial products and electro-mechanical services sectors. Brammer aims to further Lönne Scandinavia's strong growth and development within the pan-European core business.

Company
Lönne Service is a Norwegian electro-mechanical services firm with a focus on service and maintenance of electric motors for land-based industries and offshore businesses. The company expected to reach a turnover of close to NOK 70m in 2013.

Lönne Scandinavia is a Nordic distributor of industrial products with a particular focus on electric motors and electro-mechanical components. It is expected to post a turnover of close to NOK 500m for 2013.

Operating in Norway, Sweden, Finland and Denmark, Lönne Holding has 4,500 customers mainly in the oil and gas, fisheries, mining, energy and food processing sectors, with a Nordic central warehouse in Helsingborg, Sweden.

Lönne Holding is reportedly generating revenues of NOK 495.2m and adjusted EBITDA of NOK 18m. Revenues in 2012 stood at NOK 492m and adjusted EBITDA was NOK 27.7m.

As of 31 December 2012, Lönne had net assets of NOK 112.3m and gross assets of NOK 492.2m.

People
Wilhelm Mohn is a senior partner at Credo. Sigbjørn Framnes is the CEO of Lönne Service. Ole Jacob Myre is the CEO of Lönne Scandinavia. Ian Fraser is the CEO of Brammer.

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Nordics
• Buyouts
• Exits
• Now researching
• Industrials
• Norway