Mont Blanc (Sweden) - Dec 2007

unquote
01 December 2007

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Accent Equity 2008 has acquired Mont Blanc, a Swedish load carrier manufacturer, from JAC Products, a US automotive accessories company. The company was sold through a limited auction led by PK Partners in which a handful of private equity firms participated. The acquisition marks the first investment from the Accent Equity 2008 fund, which closed on €380m in summer 2007 (September 2007, page 5). The GP was attracted to the deal due to the company’s management, product offering and efficiency potential in existing and new markets. Mont Blanc was held as a non-core business by its previous owner, where the business’ prospects were not fully realised. It has struggled to be profitable with 3% EBITDA margin, while the industry average is 10%, even with high turnover figures. Accent aims to capitalise on its central business units and market the consumer side of company to secure growth, both organically and by making substantial add-ons. The deal closed at the end of January.

Debt structure

Swedbank Sjuhärad provided a senior debt package to support the deal.

Company

Dalsjöfors-headquartered Mont Blanc is a manufacturer of different types of load carrier for the consumer and automotive industry. Its products include roof racks, roof boxes, bicycle holders, roof rack platforms, canoe and boat holders, dog guards and other accessories and specialty products. The business is the second-largest load manufacturer in Europe after Thule, which was acquired by Nordic Capital from Candover for €1.3bn in summer 2007 (July/August 2007, page 29). Founded in 1947, Mont Blanc also has production sites in Leighton Buzzard in the UK, employs 200 people and turnover for 2007 is projected to be in excess of SEK 300m.

People

Niklas Sloutski, deputy CEO & senior partner, and Jerker Sundström, partner, of Accent Equity Partners have worked on the deal and will join the board of directors. Per Ekolm is the CEO of Mont Blanc.

Advisers

Equity - KPMG, (Financial Due Diligence)Equity - KPMG, (Commercial Due Diligence)Equity - Mannerheim Swartling and Dahl, (Legal)

Sourced from: Nordic unquote" 70 (Feb 2008)