Industri Kapital exits through secondary

Industry Kapital and PAI Partners have signed an agreement on the sale of Sydsvenska Kemi, the holding company of speciality chemicals group, Perstorp.

Following IK’s public-to-private acquisition of Perstorp from the Stockholm Stock Exchange in June 2001, the firm worked with management to dispose of non-core assets and to complete strategic acquisitions. Purchases included Neste Oxo and feed additive company Franklin Holding.

Perstorp also entered into strategic joint venture agreements in South Korea and Japan, positioning it in the rapidly growing Asian markets.

Since 2002, Perstorp’s speciality chemicals business has achieved consistent growth. Sales have increased by more than 10% and Ebitda growth has exceeded 17%, leading to an Ebitda margin in 2004 of 19%.

“We have worked alongside a strong and dedicated management team to focus the business, achieve operational excellence and grow the company organically and through selective strategic add-on acquisitions,” said Michael Rosenlew, a partner at IK.

Lennart Holm, CEO of Sydsvenska Kemi, said that Perstorp had become a world leader in the segments it had chosen to focus on.

“The new functional oriented organisation that we have put in place together with IK allows us to focus and utilise our resources in a much more efficient and flexible way, increasing time spent on value creation for our customers,” he said.