The industrials sector has been busy this week, and we open today with a double acquisition by Accent Equity as the firm picks up two industrial flooring companies.
Waste management continues to be in vogue. This time Nordic Capital-backed Sortera has added on GBN Services.
Outside of industrials, we have, you guessed it, some take-private news. Brookfield and Network International have agreed on the terms of a recommended cash acquisition in a £2.2 billion (€2.5 billion; $2.7 billion) deal.
Let’s kick off with a double acquisition. Accent Equity agreed to acquire the majority ownership in industrial flooring companies Linotol and C Holmqvist Entreprenad from their founders.
The founders will retain a significant ownership stake in the new group, according to a press release.
Linotol and C Holmqvist are headquartered in Norrköping and Tyringe in Sweden, respectively. The companies serve property owners, developers and construction companies with flooring products mainly for logistics and industrial purposes.
The new group generated approximately Skr810 million (€69.5 million; $74.7 million) pro forma in 2022.
“We strongly believe in the combination of Linotol and C Holmqvist, and very much look forward to growing the businesses together with the founders, management and employees,” said Tommy Torwald, associate partner at Accent Equity. “Both companies enjoy a great reputation for their high quality and long-standing customer relationships and are ideally positioned to continue their profitable growth journeys. We are impressed with the employees’ deep knowledge and quality focus, and we are very excited about the journey ahead.”
Moving over to some take-private news. Canadian private equity firm Brookfield Asset Management has reached an agreement with London-listed Network International to acquire the business for £2.2 billion, representing a 64 percent premium to the closing price on 12 April.
Dubai-headquartered Network provides card and processing, fraud, loyalty, and bill payment products and services.
Brookfield considers Network a strong strategic fit, according to a press statement, as the company has a “well-integrated” platform covering the entire payments value chain and a long-standing customer base that includes 200 financial institutions.
“Network is a leading payments business across the Middle East and other high-growth geographies that has built a strong industry position,” said Anuj Ranjan, president of Brookfield’s Private Equity Group. “We have followed the company for some time and share the team’s vision to build on that strong position by growing its offering to clients. With a long history of partnerships across the Middle East, Brookfield is a strategic partner with the track record of owning and operating mission-critical businesses, deep global technology expertise, and a history of building value through operational improvements to help Network realise its full potential.”
Brookfield put forward its 400 pence per share offer in April, beating a 387-pence joint offer from private equity firms CVC Capital and Francisco Partners.
Back to industrials theme but switching subsectors. Sortera, a portfolio company of Nordic Capital, acquired GBN Services, an independent company within waste management and recycling of construction waste in Central and North London and surrounding areas.
London-headquartered GBN is Sortera’s second acquisition in London in the last year and its 19th acquisition since its inception.
Sortera’s turnover will increase to over SKr 3.1 billion (€265.89 million; $284.96 million) with this transaction, according to a release. Nordic Capital invested in Sortera in 2021.
“This is an important acquisition for Sortera as it firmly establishes us as one of the leading companies in the London market,” said Sebastian Wessman, CEO of Sortera. “By adding GBN to our UK operations, we will serve our customers in the London area on a much broader scale.”
We’ve covered a bunch of deals on waste management here at PE Hub Europe. Some recent ones include CPP Investments’ €965 million acquisition of a 24.99 percent stake in FCC Medio Ambiente, a European waste management operator and Exponent’s exit from recycling and recovery services provider Enva. I caught up with Exponent to learn more about the exit in early May. You can read my story here.