Stock Exchange Release - 24 May 2012

CapMan sells Tokmanni to Nordic Capital, impact on CapMan Group’s result for 2012 approximately €1.2 million

Funds managed by CapMan and the other owners of Tokmanni Group have signed an agreement to sell 100% of Tokmanni’s shares to Nordic Capital Fund VII (“Nordic Capital”). CapMan funds' ownership in Tokmanni is approx. 52%. When closed, the transaction will transfer the CapMan Equity VII B fund into carry. The impact of the transaction on CapMan Group’s financial results for 2012 is approximately €1.2 million consisting of carried interest income from the CapMan Equity VII B and Finnmezzanine III B funds as well as return on CapMan’s own fund investments. The impact on CapMan Group’s cash flow is approximately €4.4 million. The closing of the transaction is subject to approvals by competition authorities and is expected to be finalised during the third quarter 2012. Tokmanni has been a good investment for investors in funds managed by CapMan.

Funds managed by CapMan made their initial investment in the discount store chain Tokmanni in autumn 2004, when Tokmanni and the Vapaa Valinta chain merged into one group. Tokmanni has grown substantially under CapMan’s management both organically and through acquisitions. Today, the company is Finland’s by far largest discount store chain with 144 stores across the country. The turnover of Tokmanni Group has increased from €150 million in 2004 to approximately €650 million in 2011 and the company has more than 2,900 employees.

Tuomo Raasio, Chairman of the Board at Tokmanni Group and Senior Partner at CapMan, says: “We are excited that we have been granted the opportunity to participate in the development of Tokmanni into a leading Finnish discount store chain. The strong vision and entrepreneurial spirit of Kyösti Kakkonen, the founder of Tokmanni, and Seppo Saastamoinen, the founder of Maxi-Makasiini, were central to the company’s growth story. These pioneers of the discount store industry in Finland also impressed CapMan when we invested in the company. CapMan and Tokmanni’s management team have together enhanced the core business by successfully developing several local businesses into a national chain. We have created value by accelerating growth and improving the efficiency of operations. As we have reached these goals, the time is now ripe for a new owner to take the reins.”

“Tokmanni’s success is a testament to our commitment to doing the right thing for our business. We have completed significant strategic development projects under CapMan’s ownership, of which one of the most relevant is the establishment of a new logistics centre. We have also expanded our retail network, and today have some 50 million visitors in Tokmanni chain stores annually. In Nordic Capital we will gain a strong owner, who will support us in the ongoing development of our company,” says Heikki Väänänen, CEO of Tokmanni Group.

For further information, please contact:
Tuomo Raasio, Senior Partner, CapMan Buyout, tel. +358 20 7207 505 or +358 40 0405 682
Niko Haavisto, CFO, CapMan Oyj, tel. +358 20 7207 583
Heikki Väänänen, CEO, Tokmanni Group, tel. +358 20 7286 044 or +358 50 0401 362

CAPMAN PLC

Laura Mustonen
Manager, Communications and IR

DISTRIBUTION

NASDAQ OMX Helsinki
Principal media
www.capman.com

CapMan www.capman.com
CapMan is one of the leading private equity firms in the Nordic countries and Russia, with assets under management of €3.0 billion. CapMan has four key investment partnerships - CapMan Buyout, CapMan Russia, CapMan Public Market, and CapMan Real Estate - each of which has its own dedicated investment team and funds. Altogether, CapMan employs approx. 120 people in Helsinki, Stockholm, Oslo, Moscow and Luxembourg. CapMan was established in 1989 and has been listed on the Helsinki Stock Exchange since 2001.


Tokmanni www.tokmanni-konserni.fi/english
The Tokmanni Group is the largest discount retailer in Finland. The group owns 144 stores operating under seven brands: Tokmanni, Tarjoustalo, Vapaa Valinta, Robinhood, Maxi-Makasiini, Maxi-Kodintukku and Säästöpörssi. The retail network covers the entire Finland; the northernmost outlet is in Kuusamo, while the southernmost outlet is in Hanko. In 2011, group turnover was EUR 653.9 million. The company currently has more than 2,900 employees.