The execution of the transaction is subject to the approval of international competition authorities and it is expected to be closed by the end of this year. However, international approval process may delay the final closing of the deal to early 2007.
Nordkalk produces high quality limestone-based products for use in the paper, steel and building material industries as well as in environmental care and agriculture. Nordkalk’s net sales totalled MEUR 269.6 in 2005 and the company has some 1,350 employees. In addition to Finland, Nordkalk has operations in Sweden, Norway, Estonia, Lithuania, Poland, Germany and Russia.
”During CapMan’s investment period Nordkalk has made significant investments, for instance in paper pigment production in Finland and in a new lime kiln in Norway. Additionally, the company has expanded into Russia with the acquisition of the Russian Alekseevka lime factory in 2005. At the same time there has been steady growth in the company’s net sales and improved profitability,” says CapMan Senior Advisor Orvo Siimestö. ”The cooperation in the Board of Directors of Nordkalk and with the other owners of the company has been constructive and productive. We believe that Rettig, as a more prominent shareholder than before, will bring additional competence for the company’s development.”
Finnventure V and CapMan Equity VII funds invested in Nordkalk in February 2003 as part of a larger investor group, which also included Rettig and Ahlström Capital. The investment in Nordkalk has been very successful for investors in the funds. CapMan Plc is a substantial investor in CapMan Equity VII Fund, and value creation in the Nordkalk investment has been mostly entered already prior to exit as fair value gains in CapMan Plc’s result.
Finnventure Fund V has a fund size of MEUR 169.9, and at 30 September 2006 the fund’s paid-in capital totalled MEUR 159.8. After the exit is finalised, the fund will start to generate carried interest on condition that further net cash flows of approx. MEUR 2 are returned to fund investors.
For further information, please contact:
Orvo Siimestö, Senior Advisor, CapMan Buyout, tel. +358 9 6155 8328 or +358 40 562 0317
Olli Liitola, CFO, CapMan Plc, tel. +358 9 6155 8306 or +358 400 605 040
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