Dyno Nobel pays three-times

Industri Kapital notched up a three-times return on its 1999 and 2000 investment in commercial explosives company Dyno Nobel. The firm invested €220m to back the buyout of the business in a public-to-private of Dyno ASA from the Oslo stock exchange in August 2000. Dyno’s chemical business was merged with Neste Chemicals to form Dynea, which is also controlled by Industri Kapital.

Industri Kapital acquired the entire conglomerate for NKr5.3bn, with existing debt expanding the purchase price to upwards of NKr9.5bn.

Dyno Nobel has been up for sale for some months. IK had considered a flotation, but opted instead to sell the business to institutional investors led by Macquarie Bank for US$1.7bn. During IK’s ownership, sales and Ebitda increased by around 100% and 170%, respectively.

Macquarie has agreed to sell on part of Dyno Nobel to Australian trade rival Orica, but will keep the North American and Australian assets, which it will look to list in early 2006. The consortium fought off rival private equity bids from Bain Capital and Apollo.

Australian investment bank Macquarie has been diversifying and extending its role in global M&A for the last five years. It has announced more than 50 acquisitions so far this year, well ahead of the record 45 deals done in 2004.

IK’s financial adviser on the sale of Dyno Nobel was Citigroup, with Freshfields Bruckhaus Deringer as legal counsel and PricewaterhouseCoopers for the accounts.

Industri Kapital has also acquired Consolis, a Finnish producer of pre-cast concrete. Consolis is to be merged with French peer Bonna Sabla, the French producer of pre-cast and concrete products that Industri Kapital acquired from AXA Private Equity and other shareholders in August for an enterprise value of approximately €235m. The new group will have combined sales of more than €1bn, with close to 8,000 employees.

Bonna Sabla is the French leader in pre-cast and concrete products, operating mainly in the public services markets. Bonna Sabla also has significant business in Spain, the UK and North Africa. Bonna Sabla employs approximately 2,800 staff and expects to generate turnover of €400m in 2005.