Cidron makes $787M bid for Munters

(Reuters) – A private equity fund bid 5.4 billion crowns ($787 million) on Wednesday for Swedish engineer Munters, trumping a bid from another engineer, Alfa Laval, in the fast-recovering manufacturing sector.

The offer from Cidron, owned by private equity fund Nordic Capital VII Limted, was recommended by Munters’ board and could lead to one of the biggest deals for a listed Swedish company in recent years.

Nordic manufacturers have recovered strongly from the plunge in demand suffered in the global financial crisis.

Cidron said it was offering 73 crowns in cash per Munters share, representing a 7 percent premium over Alfa Laval’s 68 crown per share bid. [ID:nLDE68505X]

“Nordic Capital has broad experience of implementing successful growth strategies and we will, together with Munters’ management and co-workers, carry on Munters growth and expansion strategy,” Cidron Director Joakim Karlsson said.

The board of Munters said separately it was unanimously recommending shareholders to accept the Cidron offer.

Nordic Capital is a group of private equity funds that invests in small and mid-sized companies, primarily in the Nordic region.

Cidron said Nordic Capital Fund VII had 4.3 billion euros in available capital from international institutional investors. (Reporting by Niklas Pollard; Editing by Erica Billingham)