Sun European gets K3 Capital; European PE busy amid holiday season

K3 Capital Group is a professional services firm providing advisory services to SMEs throughout the UK and overseas.

Good morning Eurohubsters, Nina Lindholm here with Friday’s Dealflow.

While many are already preparing for the holidays, deal activity is yet to calm down. That gives us some interesting deals to look at from this week. On top of that, Sun European Partners has bought a stake in a UK professional services firm in a deal that values the company at over $300 million.

Good advice. Earlier this week, we reported on how Sun European Partners was in advanced talks to acquire K3 Capital Group, a professional services firm providing advisory services to SMEs throughout the UK and overseas.

The talks have clearly gone well, as the firms have reached an agreement, according to a regulatory filing.

The deal values the Bolton, England-based K3 Capital Group at approximately £271 million ($334.1 million; € 314 million). The deal, for £3.50 per K3 share, represents a premium of about 16.7 percent to the company’s close on 7 December, according to the filing.

The acquisition of K3 isn’t the only recent business services deal for Sun European. In early November, the firm added Blume, a customer acquisition specialist in legal services and consumer regulated sectors, to its portfolio company Fletchers Group. Fletcher is a group of legal teams specialising in medical negligence.

Industrial. Staying on the topic of large deals, CVC Capital Partners-backed STARK Group bought Saint-Gobain Building Distribution (SGBD) from Compagnie de Saint-Gobain, valuing the firm at £740 million ($909 million; €862 million).

Saint-Gobain designs, manufactures and distributes materials used in buildings, transportation, infrastructure and in many industrial applications.

To find out what brands are included in the sale and the net sales CVC expects the acquired business to generate, take a look at our full coverage here.

Wind power. Another fairly sizeable deal from this week was Sandbrook Capital and PSP Investments teaming up to provide $250 million in equity to Norwegian offshore wind services company Havfram.

The money is on top of an equity commitment of up to $250m Sandbrook made when it acquired a majority stake in the company in early November.

Headquartered in Olso, Havfram provides transport, installation and development services for the offshore wind sector. The company was spun out of Havfram AS – formerly known as Ocean Installer AS – a global maritime contractor sponsored by HitecVision, which remains a minority investor in Havfram.

“PSP Investments believes the buildout of the offshore wind supply chain to be part of the solution in addressing climate change and the global shift to net zero,” said Patrick Charbonneau, senior managing director and global head of infrastructure investments at PSP, in the statement. “The state-of-the-art vessels built by Havfram will enable the construction of the largest offshore wind turbines to date.”

To find out how Havfram plans to use the funding, check out our full coverage of the deal here.

Green software. This week also saw another renewable energy related deal, but from a slightly different perspective. Tikehau Capital took a 100 percent stake in Isotrol, a company that develops proprietary software for the renewable energy sector.

Based in Seville in Spain, Isotrol’s management systems are found in more than 2,100 renewable energy installations globally and are used in the operation of more than 130 GW across 45 countries.

Tikehau Capital made the investment via its energy transition strategy, which targets the development and international expansion of mid-sized companies focused on clean energy generation, low-carbon mobility and energy efficiency.

You can find our full reporting on the deal here.

That’s all from me. I hope you all have a great weekend. I’m actually writing this to you from Finland, so I’ll be spending the weekend with my family, and a lot of snow. Craig McGlashan will be back with you on Monday.