Deals round-up – PRIVATE EQUITY: Industri Kapital seals giant Nordic deal

In what has been hailed as the Nordic region’s largest buyout to date, Industri Kapital has acquired a controlling stake in Alfa Laval. The process engineering group, which specialises in fluid controls and separators has annual sales of EURO1.6 billion, and the buyout reportedly values the company at around EURO1.5 billion.

Industri Kapital bought its 51 per cent stake from family-controlled giant Tetra Laval, which retains a 49 per cent holding.

The Alfa Laval group comprises 135 companies in 50 countries and enjoys a world market share of more than 30 per cent for both separators and heat exchangers.

Both Charterhouse and UBS Capital had been engaged in talks with Tetra Laval earlier this year but, the Financial Times reported, judged the asking price for Alfa too high. Neither Industri Kapital nor Tetra Laval has confirmed financial details of the transaction.

Skandinaviska Enskilda Banken arranged debt for the buyout, with Donaldson Lufkin & Jenrette and UBS Warburg acting as bridge lenders and bond arrangers. Industri Kapital’s advisers included Allen & Overy, Freshfields, Vinge and PricewaterhouseCoopers, while Ashurst Morris Crisp represented SE-Banken.