CapMan and Langholm Capital sell Farmos to KiiltoClean

CapMan press release 11 August 2010 at 2.00 p.m. EET

CapMan and Langholm Capital sell Farmos to KiiltoClean

CapMan funds and Langholm Capital have sold their shareholdings in Farmos Holding Oy to KiiltoClean Oy. The exit will not impact CapMan Plc's result in 2010, as the funds in question are not yet in carry.

Finnish-based Farmos is a leading manufacturer and supplier of detergents, cleaning and hygiene products, as well as industrial chemicals. Founded in 1953, Farmos' net sales totalled approx. €44 million in 2009 and it currently employs some 250 people in Finland, Russia, Estonia, Latvia, Lithuania, and Sweden.

"Farmos has developed positively during our ownership and we are very pleased that we have found a strong industrial company to acquire Farmos. Together with KiiltoClean, Farmos will be well-placed for future growth," says CapMan Partner Lars Hagelstam.

"Under CapMan's ownership, Farmos has had the resources to carry through its vision to become the leading provider of cleanliness and hygiene solutions in its main markets in Finland, the Baltic countries, and Russia. Farmos has expanded its operations through acquisitions in Russia and all three Baltic countries and has also invested in its own production facility in Russia. On the Finnish retail market, Farmos has been very successful with its Erisan and Serto brands. Being part of the Kiilto will enable us to focus on the growth of our core business, as well as our international expansion in the future," says Juha Saarinen, CEO of Farmos.

The sale of Farmos is a partial exit for the CapMan funds CapMan Equity VII A, B, and Sweden, together with Finnmezzanine III A, B, and C, which originally invested in Lumene by acquiring Orion's Noiro cosmetics unit in 2003. In 2008, Farmos was spun off as an independent business from Lumene. Both Lumene and Farmos have developed market leading positions in their sectors. Prior to the sale announced today, CapMan funds owned approx. 60% of Farmos with the remainder owned by Langholm Capital and the management. Lumene will remain a CapMan portfolio company. The exit will move the CapMan funds in question closer to carry, but does not change the guidance previously given by CapMan on when these funds are expected to start generating carried interest income.

For further information, please contact:
Lars Hagelstam, Partner, CapMan Buyout, tel. +358 (0)207 207 549 or +358 (0)40 747 1870
Christian Lorenzen, Managing Partner, Langholm Capital, tel. +44 (0) 20 7484 8850
Juha Saarinen, CEO, Farmos, tel. +358 40 513 9473

CapMan is one of the leading alternative asset managers in the Nordic countries and Russia and manages private equity funds with approximately EUR 3.5 billion in total capital. CapMan has six investment areas (CapMan Buyout, CapMan Technology, CapMan Life Science, CapMan Russia, CapMan Public Market and CapMan Real Estate), and each of them has a dedicated team and funds. Altogether CapMan employs approximately150 people in Helsinki, Stockholm, Copenhagen, Oslo and Moscow. CapMan was established in 1989 and its B shares have been listed on the Helsinki Stock Exchange since 2001.

Langholm Capital
Langholm Capital focuses on businesses that are strategically positioned to capitalise on opportunities arising from emerging consumer and demographic trends, as well as fundamental changes currently taking place in consumer lifestyles and priorities. Recent investments include Bart Spices, Tyrrells Potato Chips, Just Retirement (Holdings) plc and Lumene.

Farmos Oy is the leading Finnish producer and marketer of professional detergents, disinfectants and hygiene products as well as industrial chemicals. Farmos serves its customers in every industry requiring a high level of hygiene and cleanliness. Farmos' main brands in the retail sector are Erisan and Serto. Farmos employs some 250 people of which 160 are in Finland. Net sales of Farmos totalled approx. €44 million in 2009.

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