Industri Kapital (“IK”), together with the Jensen family and management, has signed an agreement with Daetwyler, a Swiss based international multi-niche player dedicated to industrial components supply and distribution of engineering and electronic components, to sell ELFA for SEK 2.1 billion (€222m). ELFA markets, sells and distributes electronic components and other technical products to business customers in Northern and Eastern Europe.
With over 56,000 customers and 130,000 catalogues distributed annually, ELFA is a leading distributor in the Nordic countries, Poland, the Baltic countries and Russia. ELFA is recognised for its exceptional service level, guaranteeing delivery of products within 24 hours to its customers. Headquartered in Stockholm (Sweden), ELFA has over 400 employees.
During 2007, ELFA generated EBITDA of MSEK 176 (€19m) on net sales of MSEK 987 (€105m), most of which was derived from the maintenance, repair and operations segment.
Under IK’s ownership, ELFA has grown both organically and via a number of successful acquisitions including Tevalo Group (the Baltic states and Ukraine), CLL (Sweden) and Øistein Røed (Norway). ELFA has shown considerable growth outside Sweden and in particular has strengthened its position in Poland where it has seen strong organic growth and in Russia which has huge growth potential as an export market. The business has also seen strong improvements in operational efficiency.
Michael Rosenlew, Partner at IK commented, “ELFA has been a very good investment for IK. We are pleased to have worked closely with management to grow and develop the business. We have successfully demonstrated IK’s strategy of both organic and acquisition led growth together with a focus on operational improvements. Looking forward, Daetwyler is a perfect partner for ELFA and ELFA will benefit from being part of the Daetwyler group of companies.”
Bo Lindqvist, CEO of ELFA, commented: “IK was the right partner for us at the right time. Thanks to the cooperation with IK, ELFA has expanded significantly at the same time as improving the underlying performance of the business. We are confident of successfully continuing our growth strategy together with Daetwyler, who are already a strong player in the distribution of electronic components.”
The transaction is subject to customary anti-trust approvals.
For more information on Daetwyler: www.daetwyler.ch
For more information:
Michael Rosenlew, Partner, IK
Tel: + 46 8 678 95 00
Charlotte Laveson, Communication Manager, IK
Tel: + 46 8 678 95 51
ELFA is the leading catalogue distributor for industrial electronics and automation in Northern Europe with over 56,000 customers relying on its services. The company markets and distributes more than 70,000 different electronics products from 650 suppliers from all over the world. ELFA has representations as well as shops in Sweden, Norway, Denmark, Finland, Poland, the Baltic states and Ukraine. In Russia and around ten other Eastern European countries, ELFA is represented by resellers. ELFA has approximately 400 employees and generated sales of around MSEK 987 in 2007 (€105m). For more information: www.elfa.se
Industri Kapital is a European private equity firm, having raised a total of EUR 5.7 billion, including EUR 1.7 billion in the latest fund IK2007. Since 1989, Industri Kapital has acquired 65 European companies. The current portfolio encompasses 19 companies with a total turnover close to EUR 7 billion. Industri Kapital invests mainly in mid-sized companies with strong cash flow and profit improvement potential, operating in mature industries with fundamental underlying growth. For more information: www.industrikapital.com