CapMan announced that it has sold Cardinal Foods to a company formed by Swedish agricultural cooperative Lantmannen Group and private equity firm CapVest. CapMan originally invested in Cardinal Foods in 2005 through the acquisition of two independent poultry and egg production companies.
CapMan sells Cardinal Foods, impact on CapMan Group’s results for 2013 is EUR1.9 million
Funds managed by CapMan and other owners of Cardinal Foods have signed an agreement to sell Cardinal Foods AS to a company formed by Swedish agricultural cooperative Lantmannen Group and private equity firm CapVest. Funds managed by CapMan own approx. 49% of Cardinal Foods’ stock. The impact of the transaction on CapMan Group’s result for 2013 is approx. EUR1.9 million from carried interest income and fair value changes from own fund investments. The transaction contributes EUR3.7 million in cash flow to CapMan Group. The transaction is subject to final approval by the competition authorities and is expected to close by 1 July 2013. The investment in Cardinal Foods has been excellent for investors in CapMan’s funds.
CapMan originally invested in Cardinal Foods in 2005 through the acquisition of two independent poultry and egg production companies. Since then, Cardinal Foods has experienced significant organic growth, while at the same time acquiring and integrating several complementary businesses. Today, Cardinal Foods is the second largest poultry product and egg producer in Norway, with sales in excess of NOK 1.3 billion and approx. 300 employees. Prior to the sale to Lantmannen and CapVest, Cardinal Foods’ subsidiary Norsk Kylling was sold to Rema Industrier in 2011.
“Cardinal Foods has developed according to our expectations and the investment has provided excellent returns for our fund investors. We are proud of the success of the company during our ownership. Cardinal Foods has established a solid market position through both organic growth and market consolidation. We have further improved the cost structure of the operations, from which the new owners can commence their value creation plans,” says Kai Jordahl, Senior Partner and Head of CapMan Buyout.
“Under the ownership of CapMan, Cardinal Foods has become the leading player within white meat and eggs in the Norwegian market. The successful partnership with CapMan has provided strong support to the company, and allowed us to develop through organic growth, acquisitions, and with significant operational improvements. We have an excellent position for further development and are happy to have Lantmannen and CapVest as new owners to assist us in a next phase”, says Torfinn Prytz Higdem, CEO of Cardinal Foods.
CapMan Group is one of the leading private equity firms in the Nordic countries and Russia, with assets under management of approximately EUR3.1 billion. CapMan has five investment partnerships – CapMan Buyout, CapMan Russia, CapMan Credit, CapMan Public Market, and CapMan Real Estate – each of which has its own dedicated investment team and funds. Altogether, CapMan employs 110 people in Helsinki, Stockholm, Oslo, Moscow and Luxembourg. CapMan was established in 1989 and has been listed on the Helsinki Stock Exchange since 2001.
Cardinal Foods AS www.cardinalfoods.no Cardinal Foods is a leading supplier of white meat and eggs and has a significant position in the Norwegian market. The company’s strategy is to continue to develop the most efficient production facilities for poultry and eggs in Norway, combined with innovative and user-friendly, top quality products. The company controls the entire value chain, from farmer to consumer. Slaughtering, cutting and processing of white meat are carried out at Jaeren and Stokke in Vestfold in efficient and full-scale production plants. Egg processing takes place in Norway’s most modern facilities for egg processing, located in Ski.