Private equity investors Altor Equity Partners and LD Invest Equity will sell their stakes in environmental and energy company Aalborg Industries to Alfa Laval. Financial terms of the deal were not released. The two firms acquired Aalborg in 2005. Nordic private equity firm Altor Equity Partners was formed in 2003. Danish buyout shop LD Invest Equity focuses on small to mid-cap investments and was formed in 2004.
Altor 2003 Fund (“Altor”) and LD Equity 1 K/S (“LDE”) have signed a definitive agreement to sell Aalborg Industries, a global market leader in marine and land-based energy and environmental solutions, to Alfa Laval, the world’s premier specialist in heat transfer, centrifugal separation and fluid handling.
Denis Viet-Jacobsen, Partner of Altor Equity Partners, comments: “during our ownership period, Aalborg Industries has solidified and expanded its leading position in marine boilers, thermal fluid and inert gas systems and other marine and land-based solutions. At the same time, the company has successfully expanded its business in waste heat recovery and has built up a successful after sales service business”.
Since being acquired by Altor and LDE in 2005, Aalborg Industries’ revenue has grown from DKK 1,656 to DKK 2,761 million in 2009, while the company simultaneously strengthened its profit margins and made several strategic acquisitions. Employment in the group has increased from almost 1,700 to over 2,600 during the period.
Mr. Viet-Jacobsen continues, “Aalborg Industries is now poised for a renewed period of growth. The company’s core strengths have been supplemented with a range of innovative environmental technologies, which will be launched in the near future. It was therefore natural for us to exit now so Aalborg Industries can continue this exciting journey with a new owner. We believe that Alfa Laval is the ideal partner for the company, the two companies complement each other well and will mutually benefit from each others’ competences”.
Jan Vestergaard Olsen, CEO of Aalborg Industries comments: “Our collaboration with Altor and LDE has been a strong source of support, while at the same time challenging us to realize the company’s full potential. We believe that being part of Alfa Laval going forward will further contribute to our positive development, and will enable us to serve our customers even better in the future”
Niels Toft, Partner at LD Invest Equity, adds: ”We are very proud and pleased to have been part of this partnership with management and Altor which has transformed Aalborg Industries significantly over recent years. Aalborg Industries serves as a great example for other Danish industrial companies to follow, having transformed into a global market leader with a truly global business platform and organization. Aalborg Industries’ team has indeed demonstrated that globalization is a valuable opportunity when addressed correctly and executed well. We are certain that Alfa Laval will be a good owner and is well set to capitalize on Aalborg Industries’ global platform, strong team and new environmental technologies.”
Harald Mix, managing partner at Altor Equity Partners: ”Aalborg Industries has been a model investment for us and exemplifies Altor’s investment strategy to build lasting value in partnership with management. The entire team at Aalborg Industries has delivered outstanding results over the years. Their effort and dedication continues to impress, and we have every confidence that they will continue to do so in the future”.
The agreement is conditional upon approval from competition authorities.
The sellers’ financial advisors were SEB Enskilda and UBS Investment Bank, and Bech Bruun acted as legal advisor.
About Aalborg Industries: Aalborg Industries grew from the former Aalborg Shipyard and delivered its first marine boiler in 1919. Still headquartered in Aalborg, Denmark, the company now has manufacturing facilities in Denmark, Brazil, China and Vietnam, as well as a global service network and serves ship owners, shipyards and industrial customers across the world. The product portfolio encompasses marine boilers, thermal fluid systems, inert gas systems, floating production systems and industrial boilers. The company had revenues of DKK 2,761 million in the latest fiscal year (2009), and had approx. 2,600 employees.
About Altor Equity Partners: The Altor funds (Altor) are private equity funds comprising the “Altor 2003 Fund”, with committed capital of EUR 650 million, the “Altor Fund II”, with committed capital of EUR 1,150 million and also the “Altor Fund III”, with committed capital of EUR 2,000 million. Altor is advised by Altor Equity Partners. Altor invests in companies in the Nordic region with a focus on value creation through growth initiatives, strategic development and operational improvements and has since its inception in 2003 invested in 27 platform investments and more than 30 add-on acquisitions
About LD Invest Equity: LD Invest Equity is among the most well-known and reputable private equity investors in the small- and mid-cap segment in Denmark. LD Invest Equity has accumulated experience from 80+ investments and has managed and invested three funds since its inception in 2004, currently with approximately DKK 7.5 billion under management. The investors are well renowned Danish pensions funds and large private investors such as Pension Danmark, PKA, FIH, Nykredit, Kirkbi, Lundbeckfonden, Novo and LD.