Procuritas picks up troubled Dantherm's HVAC business

The all-equity deal is worth DKK 164m (€22m). Procuritas invested via its PCI V fund. The deal saw Procuritas acquire the businesses through a newly established Danish holding company, Dantherm HVAC Holding.

The deal follows demand from Dantherm's lenders to reduce the interest-bearing debt owed to them as a result of poor performance by the telecoms division. Following a review of the business in 2013 led by Dantherm's board of directors, the company entered into a binding agreement with the parent company of China Technologies to sell off the telecoms business segment. However, the buyer has not yet been able to complete the deal.

In March 2015, Dantherm renegotiated its agreements with its primary lenders, which saw them extend the company's credit facilities until January 2016.

The delayed divestment of Dantherm's telecoms business has caused the company further liquidity issues with Dantherm now moving into significant negative equity and suffering a capital loss. Therefore, Dantherm's board will attempt to sell off all of the company's remaining divisions over the next six months.

Company
The newly acquired divisions, which operate subsidiaries in Denmark, Norway, Sweden, the UK and Germany, generated revenues of DKK 310m (€42m) in 2015 and employ 240 people.

Established in 1958 and headquartered in Skive, Denmark, Dantherm HVAC provides products and services for the ventilation, dehumidification and mobile heating and cooling sectors.

The telecoms division, of which Procuritas has acquired the European operations, supplies products for climate control in radio base stations.

People
Procuritas Partners – Hans Wikse (managing partner).
Dantherm HVAC Holding – Tornem Duer (CEO).

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