IK doubles money on VSM sale

Industri Kapital has agreed to sell VSM Group, a Swedish supplier of sewing machines, to Kohlberg Management IV for €145m.

The sale, which marks the end of IK’s eight year long involvement in the company, has generated a 2x return for Industri Kapital 1994 Fund.

Kohlberg, which owns Singer sewing machines, plans to merge the business together under the name SVP Holdings, which will include the Husqvarna Viking and Pfaff brands owned by VSM.

Formerly known as Husqvarna Sewing Machines, it used to be a subsidiary of Electrolux before it was acquired by IK and renamed Viking Sewing Machines. It acquired British software company Embroidery Networks Ltd, now Viking Emnet, in 1999, and the following year bought Pfaff Household Sewing Machines.

VSM’s particular focus is the construction of high-end sewing machines and accessories, which contrasts with Singer’s production of household sewing machines. It employs 2,000 people with factories in Sweden and the Czech Republic and has annual sales of €240m