Nytt Syn AS (Norway) - Nov 2007

unquote
01 November 2007

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Investor

Norvestor has created a new Nordic laser eye surgery group consisting of Swedish Globen Ögonklinik and Norwegian clinics Sandvika øyeklinikk and Argus øyeklinikk. Norvestor is the majority shareholder of the business, while the management has retained a significant stake. The transaction is a pure equity investment. The group is looking to make further acquisitions of Nordic eye surgery clinics, at which time a debt package will be arranged. Norvestor has been keen to invest in the eye surgery sector for more than a year and has been in contact with various groups in the market to find suitable targets. The investor was attracted to the deal because of the consolidation potential in the sector, unrealised growth in the market and realised synergies by managing one group of clinics. The marketing potential for the integrated company also acted as an incentive to invest. Growth will be secured with a combination of organic growth, establishing new clinics and making further pan-Nordic add-ons. One of the largest barriers to entry in this sector is attracting highly qualified personnel. But with the individual companies’ positions in the market and the momentum created with the merger, Norvestor and management are confident that the company will gain an even stronger foothold in the Nordic eye surgery segment going forward. The merged group is also looking to incorporate opticians in the new business and is currently looking at suitable chains. The GP regards the fit between eye surgery clinics and opticians to create an even larger customer group and stronger marketing opportunities. The temporary working newco for the group is Nytt Syn AS, but this name is likely to change when the entire group is established.

Company

Following the deal, the new entity comprises seven clinics in Sweden and Norway with nearly 100 employees. The excepted turnover for the business in 2007 is SEK 150m. The goal with the merged company is to double the number of clinics in Sweden and Norway over the next two to three years. Globen Ögonklinikk is Sweden’s largest eye surgery company, with clinics in Stockholm, Gothenburg and Örebro. Argus øyeklinikk has clinics in Oslo and Skien, while Sandvika øyelegesenter has one clinic in Sandvika, just outside Oslo. Combined, the clinics have 20 eye surgeons. People

Rolf Straume, partner at Norvestor Equity is the new chairman of the company and also led the transaction. Göran Lind, the CEO of Globen Ögonklinikk is the new CEO of the company.

Advisers

Equity - Ernst & Young, Nils Kristian Bo (Financial Due Diligence)Equity - Schjødt, Jakob Villum (Legal)Equity - Vinge, Peter Morawetz (Legal)

Sourced from: Nordic unquote" 69 (Jan 2008)