Fouriertransform, a state-funded venture and growth capital fund focused on the Swedish automotive industry, has agreed to invest SEK 185 million ($28.9 million) to support the continued growth of TitanX Engine Cooling. After the investment, Fouriertransform will own approximately 38 percent of TitanX, while EQT Opportunity will remain as majority owner.
Fouriertransform AB (“Fouriertransform”), the state-funded venture and growth capital fund focused on the Swedish automotive industry, has agreed to invest SEK 185 million to support the continued growth of TitanX Engine Cooling (“TitanX”). After the investment, Fouriertransform will own approximately 38% of TitanX, while EQT Opportunity will remain as majority owner. EQT Opportunity will appoint five board members and Fouriertransform will appoint two board members in TitanX.
TitanX was acquired by EQT Opportunity in 2008 and is a leading Sweden-based supplier of cooling solutions to the heavy trucks market. TitanX has most of the major manufacturers of heavy duty trucks as OEM customers, such as Daimler, Scania and Volvo, currently supplying them from factories in Sweden and in the US. New production facilities have recently been opened in Brazil, with plants to be opened in Mexico and China in the near future.
During EQT Opportunity’s ownership, TitanX has won several large contracts, most recently a major order with Daimler Trucks North America to supply cooling solutions in the US. Both the new contracts and the renewed contracts with existing customers will reinforce TitanX’s position as one of the leading suppliers of cooling solutions in the western world. The new capital will be used to further strengthen the development of TitanX and secure future growth in key markets.
“This is a very important investment for the Swedish automotive cluster and will be our single largest investment to date and we are very happy to be part of TitanX’s development and future. TitanX has started to build an impressive global position as the leading supplier built on technology leadership and efficient operations”, says Per Nordberg, CEO of Fouriertransform.
“Having additional capital will support TitanX’s strategic journey to continue to grow, secure the development of the new production facilities and expand our business into new markets. TitanX will continue to be competitive, win new orders and get an even stronger market position. We will also be able to improve the financial structure”, says Stefan Nordström, CEO of TitanX.
“Fouriertransform, with its focus and experience on the Swedish automotive industry, is a great co-investor for EQT Opportunity and TitanX. The capital injection will be part of the pre-IPO preparations and an IPO of TitanX will be contemplated in the next coming years”, says Samir Kamal, Partner at EQT Partners in Sweden, Investment Advisor to EQT Opportunity.
The transaction is subject to approval by the German and Austrian competition authorities, and is expected to be completed by the end of March 2013.
Contacts: Samir Kamal, Partner at EQT Partners and Investment Advisor to EQT Opportunity +46 8 506 55 367
Stefan Nordström, CEO at TitanX +46 31 727 69 50
Per Nordberg, CEO at Fouriertransform +46 8 410 40 601
Johan Hähnel, EQT Opportunity Spokesperson +46 8 506 55 334
EQT is the leading private equity group in Northern Europe with approximately EUR 20 billion in raised capital and multiple investment strategies. Together with an extensive network of independent Industrial Advisors, EQT implements its investment strategy by acquiring or financing good medium-sized to large companies in Northern and Eastern Europe, Asia and the United States, supporting their development into leading companies. Development is achieved by an industrial strategy with focus on growth. Since inception, EQT has invested more than EUR 11 billion in more than 110 companies and exited approximately 60. EQT-owned companies have more than 550,000 employees.
EQT Partners, acting as Investment Advisor to the managers of each EQT fund, has around 120 investment professionals with an extensive industrial and financial competence. EQT Partners and its affiliates have offices in Copenhagen, Frankfurt, Helsinki, Hong Kong, Oslo, London, Munich, New York, Shanghai, Singapore, Stockholm, Warsaw and Zurich.
TitanX Engine Cooling is a supplier of engine cooling solutions to manufacturers of trucks, buses, off-highway equipment and industrial diesel engines. The company has manufacturing sites in Mjällby and Linköping, Sweden, Jamestown, NY, in the US, and in Jaguariuna, Brazil.
Fouriertransform is a state-funded venture and growth capital company with an investment framework of SEK 3 billion focusing on the Swedish automotive industry. Fouriertransform provides industrial expertise for growth, supported by its extensive network of industry experts. Fouriertransform focuses on small to medium-sized, innovative companies strengthening the Swedish Automotive industry.