SWEDEN - Nordic Capital-backed Thule divests US towing operations

Rikke
30 June 2009

Tweet
Facebook
LinkedIn
Google plus
Send to

Nordic Capital-backed Thule, a provider of sports and utility transportation equipment, has divested its North American towing systems operations, including the brand Valley, through a management buy-out.

Thule, at the time backed by UK buyout house Candover, acquired the unit in 2006, following which it implemented a restructuring of the business. Thule Towing Systems is currently number two in the North American market, with annual sales of approximately USD 55m. According to a statement issued by Thule, however, the market for towing systems in North America has been "especially hit by the decline in demand."

Thule was first acquired by EQT in 1999 for an estimated enterprise value of EUR 80m. In a secondary buyout in 2004, EQT divested its stake to Candover in a deal reportedly worth EUR 465m. Nordic Capital puchased the business from Candover in 2007, in deal valuing the business at EUR 1.3bn.

In 2008, Thule underwent substiantal restructuring. Seven Nordic banks agreed to strengthen the capital base of the business and deleverage the group, and in December last year, Thule announced that the financial restructuring was succesful.