Triton reaps 4x gross money in Ewellix trade sale

Min Ho
25 July 2022

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Triton has agreed to sell linear motion solutions manufacturer Ewellix to Schaeffler, a German auto and industrial supplier group, for around EUR 582m. The amount does not include Ewellix's around EUR 120m in net debt, which will be assumed by Schaeffler.

The GP's four-year investment in the asset is expected to generate a return of around 4x gross money, a source familiar with the situation said. The sale, which was conducted by UBS, marks the first full realization by Triton V, the source added.

Triton acquired Ewellix, formerly known as SKF Motion Technologies, via a carve-out transaction from Sweden's SKF Group in 2018 for Triton Fund V. The business was valued at SEK 2.75bn (EUR 267.8m) at the time, according to a statement at the time.

During Triton's ownership, the company was repositioned as a standalone business with a focus on high growth niches within the linear motion market. Its product portfolio was streamlined and production footprint and procurement functions were improved, while investments were made in digitalization and product development, according to the source.

Triton Fund V held a final close in December 2018 on its hard-cap of EUR 5bn, surpassing its EUR 4bn target.

Triton made its first investment in the industrial tech sector in 1999 and has since invested in more than 34 industrial tech companies across Northern Europe and supported around 45 add-on acquisitions, the source said. The GP has 15 industrial tech companies in its portfolio, the source added.

Company
Gothenburg-based Ewellix is a manufacturer of actuation and linear motion solutions, which are used in medical, mobile machinery, assembly automation and robotics, as well as various general industrial applications. Ewellix has sales offices in 15 countries and works with around 550 distribution partners. Ewellix operates 6 manufacturing units across the US, Europe and Asia.

People
Triton – Claus von Hermann (managing partner).
Ewellix – Daniel Westberg (CEO).
Schaeffler – Stefan Spindler (CEO industrial).

Advisor
Vendor – UBS (M&A).

[Editor's note: The first paragraph has been updated to note that the purchase price does not include Ewellix's net debt figure.]