Norwegian private equity firm Pareto is set to buy Orkla Finans, a rival Norwegian private equity firm, Pareto announced. The details of the deal were not disclosed. Pareto has more than 400 employees and equity capital of close to NOK 3.3 billion ($564 million). Pareto will buy all the shares in Orkla Finans.
Pareto has today signed an agreement to buy Orkla Finans. The primary objective of this acquisition is to strengthen focus on asset management and project financing.
Under the acquisition Pareto AS will buy all the shares in Orkla Finans AS. The agreement is subject to the approval of the Financial Supervisory Authority of Norway and the Norwegian Competition Authorities.
Pareto already manages securities and projects on behalf of clients for over NOK 79 billion, while Orkla Finans manages assets totalling around NOK 20 billion.
“Through the purchase of Orkla Finans, Pareto will acquire products and expertise that will complete the range of services we offer in the fields of asset management and project financing,” says Svein Støle, Managing Director of Pareto.
Competence and scale economies
“The financial sector is evolving in a direction that demands larger-scale operations and growing in-depth expertise on the part of each player. We have focused on finding an industrial owner for Orkla Finans who will promote this type of development,” says Roar Engeland, head of financial investments at Orkla.
“The Pareto Group and Orkla Finans go hand in glove. This is a good industrial match that will benefit our clients and our employees alike. We have expertise, projects and products that can be further developed and grow in a partnership with Pareto. At the same time, we gain access to new competence and new products. For our investors, this translates into exciting, new investment opportunities,” affirms Bjørn Slåtto, Managing Director of Orkla Finans.
Pareto is a leading, independent player on the Norwegian financial services market. The company operates in the fields of securities brokerage, financial advisory services, project financing, bank services, asset brokerage and asset management. Pareto has offices in Oslo, Stavanger, Bergen, Trondheim, Kristiansand, Bryne, Singapore and New York. The Group has over 400 employees and equity capital of close to NOK 3.3 billion.
About Orkla Finans:
Orkla Finans is an investment management company that develops, arranges and manages investment solutions. The company has a broad product platform and offers investment opportunities in real estate, energy/raw materials, derivatives and bonds, shipping, private equity, and Norwegian and foreign securities funds. The company has offices in Oslo, Bergen, Trondheim, Stavanger, Kristiansand, Tønsberg and Hamar. The Group has 75 employees.