Stock exchange release - 19 September 2006
CapMan sells Tiimari to Leo Longlife
Approximately MEUR 3.0 carried interest to CapMan
Funds managed by CapMan will realise their investment in Tiimari Plc. The funds will sell their stake in holding company Maritii Oy, which has 100 per cent ownership of Tiimari, to Oyj Leo Longlife Plc. Prior to the exit CapMan funds hold approx. 83 per cent of Maritii Oy’s shares, and the enterprise value of the company is approx. EUR 61 million in the transaction. The exit has an impact of approx. EUR 3.0 million on CapMan Plc’s result for 2006 as a result of carried interest income received from Fenno, Finnventure III and Finnmezzanine I funds.
Tiimari Plc is Finland’s leading nation-wide chain of stores specialised in home-ware and gifts, craft, hobby, card and packaging items, school and office stationery supplies and seasonal products. Tiimari has some 850 employees in 194 stores in six different countries. Tiimari’s turnover was EUR 76.5 million in 2005.
Leo Longlife Plc is quoted on the Main List of the Helsinki Stock Exchange and the company’s operations include business and corporate promotional gifts as well as investment and property development. Leo Longlife employs about 45 people, and the company’s turnover was EUR 68.3 million in 2005.
”Tiimari has been in our portfolio for quite a long period that has included both better times and more challenging times. During the past year Tiimari’s profit development has been good, and the company is now ready to enter the next growth phase. We believe that Tiimari and Leo Longlife together have good prerequisites to develop the business concepts of both companies and to export them to new markets,” says Jan Mattlin, Investment Manager at CapMan.
”Tiimari’s business concept is one of the best-known in Finland, and in recent years it has been strengthened to even better meet the changing needs of customers. Tiimari operates successfully in six different countries and the company has achieved significant profit development during 2006. In the future, growth will be based on the strong expansion of operations in both Tiimari’s current markets and in new international markets. It will be a pleasure to export a strong Finnish brand to the reach of new customers,” states Kristina Illi, CEO of Tiimari.
CapMan funds Finnventure III, Finnventure IV and Finnmezzanine I and the Fenno Fund co-managed by CapMan and Fenno Management Oy invested in Tiimari together with the company management in 1998. The investment in the company has been satisfactory for investors in CapMan funds.
The transaction is expected to be closed on 9 October 2006. SUMMA Corporate Finance acted as a financial advisor and Castren & Snellman Attorneys Ltd as a legal advisor to CapMan and other sellers in the transaction.
For further information, please contact:
Jan Mattlin, Investment Manager, CapMan Buyout, tel. +358 9 6155 8327 or +358 40 508 6406
Kristina Illi, CEO, Tiimari Plc, tel. +358 400 408889
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