CapMan makes a partial exit from LUMENE Oy

CapMan Press Release 23 December 2010 9.00 a.m. EET

CapMan makes a partial exit from LUMENE Oy

The funds managed by CapMan will sell a total of 48% of shares in LUMENE Oy to funds managed by LUMENE's other major shareholder, Langholm Capital. After the sale the funds will own 13% of LUMENE Oy. The partial exit will not affect CapMan's result for 2010 or 2011 as the positive change in the fair value of CapMan's own fund investment has been booked in CapMan's result already during the investment period.

LUMENE Oy develops, manufactures, sells, and markets high-quality skin care and cosmetic products, together with professional hair care products. Lumene is the market leader in skin care and make-up products in Finland. The company has expanded in Russia and the US in particular in recent years and strengthened its position in Sweden. LUMENE Oy recorded net sales of approx. 78 million in 2009 and employs around 510 people. The company has grown well in 2010 and succeeded in maintaining a good level of profitability.

"During CapMan's period of ownership, LUMENE Oy has concentrated on strategically important and innovative, value-added products based on arctic berry and plant extracts. The company has two strong brands, Lumene and Cutrin, today and it has been able to build a strong market position for itself in a very competitive, international market. Its extensive distribution network in Russia, the US, and Sweden will provide a solid foundation for future growth. We are pleased that we at CapMan, together with Langholm Capital, will continue to be able to participate in the company's future," says CapMan's Partner and member of the LUMENE Oy´s Board, Lars Hagelstam.

"We are well-placed to continue developing our business and expanding it internationally. Our goal as we go forward will be to seek strong growth in the Nordic countries, as well as in the US and Russia," says LUMENE Oy's President and CEO, Tapio Pajuharju.

Following the sale, CapMan funds will hold 13% of LUMENE Oy, Langholm Capital's funds will hold 79%, and the company's management and other shareholders will own altogether 8%. A CapMan representative will continue on LUMENE Oy's Board of Directors after the sale.

The CapMan Equity VII and Finnmezzanine III funds made their initial investment in LUMENE Oy in 2003 when they acquired Orion's cosmetics unit, Noiro. The name of the company was later changed to LUMENE Group. LUMENE Oy's subsidiary Farmos, the manufacturer of detergents and cleaning products, became an independent company in 2008, and CapMan exited Farmos in August 2010. The investment has proved a good one for investors in the CapMan funds. CapMan is a substantial investor in the CapMan Equity VII fund, and the fair value change related to this investment has been booked in CapMan result already earlier.

The CapMan Equity VII A, B, and Sweden funds, together with the Finnmezzanine III A and B funds, will transfer closer to the stage where they start to generate carried interest, and as disclosed earlier they are expected to start generating carried interest during 2011. The final closing of the sale is expected take place in January 2011.

Further information:
Heikki Westerlund, Senior Partner, Chairman of CapMan Plc's Board of Directors, tel. +358 (0)207 207 504 or +358 (0)50 559 6580
Lars Hagelstam, Partner, CapMan Buyout, tel. +358 (0)207 207 549 or +358 (0)40 747 1870
Tapio Pajuharju, President and CEO, LUMENE Oy, tel. +358 (0)50 577 4200

CapMan www.capman.com
CapMan is one of the leading alternative asset managers in the Nordic countries and Russia and manages private equity funds with approximately EUR 3.6 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 approximately 150 people in Helsinki, Stockholm, Copenhagen, Oslo, Moscow and Luxembourg. CapMan was established in 1989 and its B shares have been listed on the Helsinki Stock Exchange since 2001.

Langholm Capital www.langholm.com
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.


LUMENE Oy www.lumene.com
Celebrating its 40th anniversary in 2010, LUMENE Oy is a holistic beauty and well-being company with two brands: Lumene and Cutrin. Lumene focuses on skincare and color cosmetics, while Cutrin on professional haircare products. Both are developed and manufactured in Finland by a team of experts using state-of-the-art technology, but sold and marketed internationally. With an uncompromising Finnish approach to innovation, our success is founded upon a simple belief: Create effective products harnessed from natural arctic ingredients.

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