Roper Industries, the US-based industrial manufacturer, has completed the 100% acquisition of Struers Holding for DKK1.23 billion ($151 million) from EQT.
EQT, the Scandinavian buyout house, sold Struers in a transaction that values the business at DKK1.23 billion.
EQT’s Scandinavia I Fund acquired Struers in January 1998 in a DKK800 million buyout from Danish-based Radiometer. EQT contributed equity of DKK240 million to this deal and has received DKK820 million from the sale, amounting to a gross IRR of 39.8%. The acquirer, Roper Industries, has assumed net debt of DKK410 million. According to Roper Industries the purchase price represents approximately seven times expected first year EBITDA.
Struers is headquartered in Denmark and includes a Scottish subsidiary, Logitech. The company manufactures equipment and consumables for materialographic preparation, a process used for quality control and failure analysis of solid materials. Shortly after EQT bought the company it sold Radiometer Analytical in order to focus on the core business. Last year Struers had net sales of DKK605 million ($69 million) achieving 22% organic growth over 1999. Both Struers and Logitech will join Roper’s analytical instrumentation division.
John Hestehave, CEO of Struers, says: “I find that Roper’s business philosophy, which includes acquisitions of companies with strong brand names, leading market positions and strong technological capabilities, suits our company very well. Under the ownership of Roper we will have the opportunity to further develop Struers as an independent business unit and continue our successful growth in sales and earnings.”
Roper Industries manufactures industrial controls, fluid handling and analytical instrumentation products for international markets including oil and gas, chemical and petrochemical processing, medical diagnostics, scientific research and semiconductors. Last year it generated net sales of $504 million. This acquisition is the company’s largest in a number of deals in recent years.