3i buys Pharmadule Emtunga from IDI

3i has acquired Pharmadule Emtunga, which supplies high tech facilities, from Swedish private equity fund, Industrial Development & Investment (IDI). The value of the deal was not disclosed but IDI described the investment as “very successful” due to the strong management team and an experienced and committed board of directors.

3i has formed a new vehicle PHEM Intressenter to acquire the company. The transaction is conditional upon approval from the relevant competition authorities. As part of the purchase price the former owners of Pharmadule Emtunga, Clas Wallenborg, Bliwa Livförsäkring (life insurance) and the Swedish Red Cross, will retain a small interest in the company. IDI retains a small stake of less than 10%.

Pharmadule Emtunga supplies turnkey modular facilities, primarily production facilities for the pharmaceutical industry, living quarters for offshore industries and modules to the telecom sector. The company has more than quadrupled sales in three years and expects to reach sales of SEK 2.2bn for 2003. Pharmadule Emtunga currently has 600 employees and conducts operations in Vara, Gothenburg and Stockholm.

IDI acquired family-owned Emtunga International in 1998 and Pharmadule in 2000, forming Pharmadule Emtunga through a merger of the companies in 2001. Pharmadule started operations in 1986 while Emtunga’s history can be traced back to 1945. Christer Zetterberg, chairman of IDI, said: “During IDI’s ownership Pharmadule Emtunga has shown exceptional growth and at the same time improved profitability? We are pleased that Pharmadule Emtunga is getting an owner that will provide the resources required to take the business to its next stage of development.”

IDI was established in 1997 and has committed capital in excess of SEK1bn (€110m). The independent private equity fund focuses on small and medium-sized companies in Northern Europe.