Good morning Eurohubsters, Craig McGlashan here with the opening Dealflow of the week.
We open up today with a move by Investcorp into the growing quantum technology sector, we have an update on the Caverion control saga, an energy-saving tech listicle, a vehicle repair company changing private equity hands and an update on one of last week’s IPO exits.
A quantum of finance. As I was a software engineer in a past life, I was particularly interested in an investment by Investcorp in Terra Quantum, a quantum technology firm.
When I studied computing science back in the early 2000s, the potential for quantum computing was already being seen as the next big thing. In theory, the systems would revolutionise many forms of computing, from processing to cryptography and more.
The investment is particularly of note, according to an Investcorp spokesperson, because it’s the first time private equity money – rather than venture capital – has gone into the quantum tech sector.
“Terra Quantum is highly relevant to many of our current and future high-growth portfolio companies, and we have seen full alignment on our core values: having integrity and being performance-driven, collaborative, entrepreneurial, and global,” said Gilbert Kamieniecky, head of global tech at Investcorp, in a statement.
Agreement. We’ve been covering the tussle between Bain Capital and Triton Partners to take Finnish construction firm Caverion private in-depth on PE Hub Europe and we have some more developments to report on that front.
The Caverion board of directors has unanimously recommended that shareholders accept an amended offer by Bain, whereby they can take €8 per share immediately or €8.50 nine months after the tender offer closes. Bain’s original offer was for €7 per share and had been unanimously recommended by the board, until Triton made its rival €8 per share offer.
Bain’s new offer also has a lower acceptance level of two thirds of the shares, down from 90 percent.
The Caverion board also noted that while Bain has received “all necessary regulatory approvals”, whereas its advisers have said that the Triton offer “would be subject to a more lengthy and complex merger clearance process” that would likely require structural remedies, meaning it would take “significantly longer” than the tender offer.
Read more about the merger control concerns here.
Keeping the lights on. With the rising cost of energy and the climate crisis never too far from anyone’s thoughts, PE Hub Europe’s Nina Lindholm felt it would be a good time to take a look at some of the private equity investments in energy-saving tech.
Check out her listicle here, which includes deals involving Ara Partners, FSN Capital, CVC, Oaktree Capital Management, Resurgens Technology Partners and Partners Group.
Handing over. CapMan Buyout has agreed to sell its shares in Malte Månson, an independent service and repair provider for trucks and transportation vehicles, to Accent Equity.
Malte Månson is headquartered in Örebro, Sweden. The firm employs 180 people and recorded sales of around SKr360 million ($34.5 million; €32.3 million) last year.
The transaction is likely to close during the spring of 2023, subject to regulatory approvals and customary closing terms.
CapMan first invested in Malte Månson in 2014 and has assisted the growth of the company’s workshop chain organically and via acquisitions, according to a release.
Read more about the deal here.
The two firms aren’t the only private equity companies that have been looking at the vehicle repair sector. Earlier this month, PE Hub Europe spoke to Carlyle’s Cyril Bourdarot about his firm’s investment in Groupe Lacour, a provider of software for the automotive after-sales value chain.
IPO figures. Sticking with exits, last week we followed the IPO of Italian firm EuroGroup Laminations, a designer and producer of motor cores for electric motors and generators. The sale was of note not just because it came after a year in which IPO volumes dropped, but also because it had private equity backing, with Tikehau Capital owning 30 percent of the firm.
We’ve got some more numbers to report on that for you.
Since Tikehau bought its stake in September 2020, the company’s order book for its electric vehicle and automotive segment grew by over three times from €1.5 billion to €5 billion. The company’s EBITDA tripled during the period.
Tikehau retained an 8.5 percent stake following the IPO, which priced the firm at €5.5 per share, implying a market cap of around €922 million.
“Our investment in EuroGroup Laminations is a great example of our private equity strategy dedicated to the energy transition and ability to back leading European businesses with strong growth potential that support the decarbonisation of our economy,” said Tikehau co-founders Antoine Flamarion and Mathieu Chabran in a statement. “Companies like EuroGroup Laminations are in our view at the heart of driving the transition to a low-carbon economy and the success of the IPO illustrates the increasing demand from institutional investors for opportunities such as these.”
Right, time for my own exit. I’ll be back with you again tomorrow.