SWEDEN - IK makes 3x money on Myresjöhus recap

IK invested EUR 22m in equity in a transaction worth EUR 58m in March 2005. A EUR 65m refinancing arranged by Swedbank has now been fully implemented. IK retains an 85% stake in the housebuilder, which it estimates is worth six or seven times its original cost. The investor's plans for the business include developing it through acquisitions.

At the time of its acquisition, Myresjöhus was one of the leading prefabricated house manufacturers in Sweden, with sales of Skr950m (EUR 106m) and 390 employees.

Since the acquisition of Myresjöhus in March 2005, management and IK has implemented a 100 day programme, which has increased margin by around 50% and reduced operating capital. The firm is also currently building a new green field box unit factory in Northern Sweden to meet increased product demand. In December 2005 a sale-and-leaseback arrangement on the two factory buildings was also implemented.

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