Huurre Is Fourth Nordic Deal for NWEP

NatWest Equity Partners led the FMk 200 million (ecu 33 million) March buyout of Huurre, a Finnish commercial refrigeration products group. The transaction, the UK private equity house’s fourth deal in the Nordic region and its first in Finland, was executed by NWEP’s London-based dedicated Nordic team.

Huurre’s product range encompasses chilled cabinets for drinks and ice-cream retailing and similar applications, commercial freezers and cold rooms, and drive-in refrigerated warehouses. The market leader in commercial refrigeration equipment in Finland and Sweden, Huurre has manufacturing facilities in Finland, Sweden and Indonesia and subsidiaries in the UK, Germany, Norway, Hungary and Russia, employing a total of 450 people. Operating profits at Huurre improved significantly in 1997, reaching FMk 29 million on a turnover of FMk 390 million. Huurre currently derives 30% of its turnover from sales outside the Nordic region, exporting to a diverse selection of countries worldwide.

Huurre was auctioned by Merita Bank, which had acquired the company in the late 1980s. NWEP is backing incumbent management, led by Lars Lindell. An investment of FMk 88 million gave NWEP an initial 88% stake. The balance is split between management and leading Finnish insurance group Tapiola. Management has the potential to increase its percentage holding in Huurre, but NWEP will maintain majority control through to exit. SE Banken provided acquisition finance and working capital facilities for the deal.

NWEP views Huurre, which it believes has significant potential for organic growth, particularly in export markets, as a standalone investment.

The MBO’s completion announcement coincided with news of NWEP’s exit from Zincocelere, the first deal completed by the group’s Italian office in 1996. Zincocelere, Europe’s leading manufacturer of medium- to high-complexity circuit boards, was sold to Viasystems Group, one of the largest PCB groups in existence. The $100 million acquisition consideration ranks this deal as one of the most substantial exits yet seen in the Italian private equity market and delivered NWEP an IRR of close to 50%.

NWEP, which is currently in the market with a first third-party fund for investment throughout Europe, last year invested GBP300 million (ecu 460 million) in European private equity transactions through its offices in the UK, Germany, France, Spain and Italy.