Private equity fund EQT Expansion Capital II has put 40 million euro ($57.4 million) into a management buyout of Nordic data center builder Coromatic Group. The financing, in a combination of equity and loans, enables the company’s management to take over the majority of Coromatic from private equity fund Litorina Kapital III. EQT Expansion II is a 474 million euro fund focused on investments in privately owned mid-market companies.
EQT Expansion Capital II backs management buyout of leading data center builder Coromatic Group. EQT Expansion Capital II invests EUR 40 million, in a combination of equity and loans which enables management to take over the majority of Coromatic from private equity fund Litorina Kapital III · EQT Expansion Capital II will work actively with management to further extend Coromatic’s position as market leader in the Nordic region and to explore growth opportunities internationally
EQT Expansion Capital II (“EQT Expansion Capital”) has agreed to invest in Coromatic Group (“Coromatic” or the “Company”), the leading Nordic data center builder, focused on advanced design, installation and services. The investment consists of a combination of equity and loans and is made together with current management who will stay invested and will become the majority shareholder in the Company.
Coromatic’s core business is the design and installation of high-end turn-key data centers with a special competence in ensuring uninterrupted operations, security solutions and cost efficient cooling. Coromatic also provides adjacent power products and services, such as uninterruptable power supply as well as backup power solutions. Comprehensive counseling, finding the best suitable data center solution for its customers and extensive maintenance services are strong competences of the Company. Coromatic has 235 employees and works with over 900 customers, installing close to 100 data centers per year.
“Together with EQT Expansion Capital, their international experience and network, we are excited to take the next steps in our expansion. The data center and secure power market is expected to show stable growth over the coming years. Coromatic Group is well positioned to take advantage of the growing demand as well as industry trends with continued strong focus on IT security and business continuity as well as an energy saving IT management approach,” says Maths Waxin, CEO and co-founder of Coromatic.
Coromatic was established in 2000 and has since grown strongly, both organically and through acquisitions in the Nordic region.
“We like the management’s entrepreneurial approach, the strong market drivers and in particular the growth potential in extending our market reach. Acquisitions will continue to be part of the strategy but equally important is creating synergies within the group and further rolling out our service offering, enabling us to continue the success story of Coromatic”, says Bo Kastensson who will become new Chairman of the Coromatic Board of Directors. The new Board of Directors will also include Sven Kallstenius and Juan Vallejo.
In 2010, Coromatic had sales of over SEK 650 million. The group includes Coromatic AB, Metric Power Systems AB and Skandinaviska Kraftprodukter in Sweden, Metric AS in Norway, Scanpocon A/S and Coromatic A/S in Denmark and Coromatic OY in Finland.
Coromatic fits well into EQT Expansion Capital’s investment strategy. EQT Expansion Capital enables growth and change in ownership through providing capital and knowledge with flexible financing solutions, while allowing shareholders to gain or retain majority in their companies. The transaction is expected to close late June or early July and is subject to approval from antitrust authorities.
Contacts: Johan Hähnel, Communications & PR +46 8 506 55 334 EQT Expansion Capital II
EQT is the leading private equity group in Northern Europe with more than EUR 13 billion in raised capital and multiple investment strategies. Together with a superior network of Industrial Advisors, EQT implements its business concept by acquiring or financing good medium-sized to large companies in Northern and Eastern Europe, Asia and the United States, developing them into leading companies. Development is achieved by applying an industrial strategy with focus on growth. Since inception, EQT has invested EUR 9.7 billion in more than 85 companies and exited more than 40. EQT-owned companies have more than 500,000 employees.
EQT Expansion II is a EUR 474 million fund providing capital for privately owned mid-market companies. The core investment focus of the Fund is businesses in need of capital for growth. The financing solutions have equity characteristics, while the owner normally maintains control over the company.
EQT Partners, acting as investment advisor to the managers of each EQT fund, has more than 100 investment professionals with an extensive industrial and financial competence. EQT Partners has offices in Copenhagen, Frankfurt, Helsinki, Hong Kong, Oslo, London, Munich, New York, Shanghai, Singapore, Stockholm, Warsaw and Zurich.