Good morning Eurohubsters, Craig McGlashan here with the Dealflow.
Before we start, a quick editor’s note. This is the last week we will publish the Dealflow this year – more details at the bottom of the email.
In a Monday morning feast, we have the second edition of our Q&A series on the outlook for 2023, this time with Karsten Langer of Riverside Europe. Deals wise, we look at a move into recycling by Nordic Capital, an exit from a security equipment firm by Fortus Group, a pub portfolio firm merger and a surveying company add-on. We also have some promotions at Ambienta to report.
Capital goods. In the second of our outlook Q&As for 2023, I spoke to Karsten Langer, managing partner of Riverside Europe.
Among the insights he shared was one industry that might be a good bet for private equity firms a little down the line.
“As we progress through the cycle and bid-ask spreads narrow, capital goods businesses may gain favour again, as investors eye an opportunity to participate in accelerating expansion,” he said.
Read the whole interview here.
Also make sure – if you haven’t already – that you read Nina Lindholm’s Q&A with Partners Group’s Bilge Ogut, available here.
Recycling. Nordic Capital bought Autocirc, a provider of reused and recycled automotive original spare parts, from the Nordic sustainable investment fund Alder.
Based in Borås, Sweden, Autocirc offers reused original spare parts to insurers, workshops and car owners. The company is active in Sweden, Norway, Finland and the UK.
Check out Autocirc’s turnover here.
Securing the deal. Rockpool Investments exited its investment in Fortus Group, a provider of security equipment and monitoring services, in an MBO backed by AIB Equity Capital.
Based in Hertfordshire in England, Fortus supplies a range of CCTV, intruder, access control and fire safety products and is the largest B2B distributor of security products in Ireland, according to Rockpool.
Rockpool and AIB provided additional funding in March 2021 to support the acquisitions of Enterprise Security and Re:Sure, resulting in Fortus’ revenues reaching over €100m.
Read our full coverage to learn the return and IRR on the exit.
Getting the round in. Caledonia Private Capital portfolio company Liberation Group will integrate with Cirrus Inns, a collection of 22 pubs and inns that trades from southwest London to the Cotswolds.
Headquartered in London, Cirrus Inns is a “constantly expanding” group of individual inns run by landlords, according to a statement.
Find out Liberation’s new footprint here.
Surveying. Palatine-backed Lucion Group completed its fourth acquisition of the year, buying surveying firm Midland Survey Ltd (MSL).
MSL provides measured building surveys, underground utility surveys, topographical surveys, 3D modelling and CCTV drainage surveys. It is headquartered in Southam, Warwickshire, and has four other offices in the UK, in Gloucestershire, Buckinghamshire, Yorkshire and Sussex.
Lucion, headquartered in Gateshead in England, is an environmental services company.
Read how Palatine believes the purchase will complement an earlier add-on for Lucion here.
Partnering up. Ambienta SGR, an asset manager focused on environmental sustainability with offices in Milan, Dusseldorf, London and Paris, has two new partners.
CFO Daniele Gatti and Matt Norrington, of the firm’s London office, have both been promoted to partner, the firm said this morning. Another four people have been promoted in private equity, two in public markets, two in sustainability and strategy and one in finance.
That’s it from me – for the whole year in fact! Nina Lindholm will be on Dealflow duty for the rest of the week and the final edition of the year will be on Friday, 23 December. The first Dealflow of 2023 will be on Tuesday, 3 January.
I hope you all have a good break and a great new year, and I’ll see you again in 2023.