Translations:

Current press release is available also as a translated version. Please, select your language from the menu above.

Stock exchange release - 26 October 2006

CapMan exits from Nordkalk

Funds managed by CapMan have sold their stake in producer of limestone products Nordkalk Corporation mainly to Rettig and Ahlström Capital. The funds’ held approx. 26% of Nordkalk’s shares prior to the transaction. The exit from Nordkalk moves Finnventure Fund V considerably closer to carry, but it does not have substantial impact on CapMan Plc’s Q4 result in 2006.

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



CAPMAN PLC

 

 

Jerome Bouix

Partner

Fundraising, IR and Communications

 


DISTRIBUTION

Helsinki Exchanges

Principal media

www.capman.com



CapMan
CapMan is one of the leading private equity investors in the Nordic countries and manages Nordic buyout, mezzanine, technology, life science and real estate funds with approximately EUR 2.6 billion in total capital. Each investment area has a dedicated team and altogether CapMan employs around 100 people in Helsinki, Stockholm, Copenhagen and Oslo. Established in 1989, CapMan has strong experience as a fund manager and as a partner for investors and entrepreneurs. To date CapMan has made over 150 Nordic investments and over 90 exits. The current portfolio encompasses over 60 companies with an aggregate turnover of approx. EUR 2.6 billion and aggregate personnel of 17,000 people. The latest investments are made in Finnish Maintpartner Oy, Danish ScanJour A/S, Swedish Neoventa AB and Norwegian InfoCare ASA. The portfolio of CapMan’s first private equity real estate fund consists of 22 commercial properties in the Helsinki metropolitan area. The B shares of CapMan Plc are listed on the Main List of the Helsinki Stock Exchange since 2001. www.capman.com

Nordkalk Corporation
Nordkalk is the leading producer of high quality limestone-based products in Northern Europe. Nordkalk extracts limestone mainly from its own deposits and produces limestone powder, crushed limestone and enriched calcite as well as quick lime and slaked lime. The company’s product range also includes dolomite and wollastonite. The products are used mainly in the paper, steel and building material industries and in environmental care and agriculture. Nordkalk’s net sales totalled MEUR 269.6 in 2005 and it employs about 1,350 people. Nordkalk operates at more than 30 locations in Finland, Sweden, Norway, Estonia, Lithuania, Poland, Germany and Russia. www.nordkalk.fi