Hilding Anders
Investment summary
Fund: Fund II and Fund IV
Investment themes: Buy-and-build and structural
transformation
Investment date: November 1997 (Fund II) and April 2001 (Fund
IV)
Exit date: December 2003
Business description
Hilding Anders is one of the world's leading bed
manufacturers. A part of the company's sales are private label
products which are sold to major furniture chains in Northern
Europe, such as IKEA, Mio, and Europa Möbler. Additionally,
Hilding Anders markets beds, duvets, pillows and mattresses under
various brand names.
Background
Nordic Capital developed a working relationship with
the management and owners of Apax in 1996. Following an earlier
attempt to merge Apax with Hilding Anders in 1997, Nordic Capital
acquired a majority stake in Apax later that year. Nordic Capital
realised its vision for the combined companies in February 1999
when Apax was merged with Hilding Anders.
Investment rationale
Nordic Capital identified Apax as an ideal platform
to consolidate the fragmented bed manufacturing industry in
Northern Europe. Nordic Capital believed that creating a dominant
player in the Nordic Region would increase the attractiveness of
the company to international retailers and open up the possibility
for expansion into other countries.
Value added
Nordic Capital initiated a reorientation of Hilding
Anders' business through divestitures of the company's upholstery
business, real estate, and share portfolio. Nordic Capital also
pursued many add-on acquisitions for Hilding Anders after the
original investment, of which four were completed. Nordic Capital
introduced Hilding Anders as a consolidator in the sector
throughout Europe, and was actively involved in each negotiation.
In 2000, Fund IV completed a €16.6 million follow-on investment,
partially to finance the acquisition of Slumberland.
Exit
In December 2003, Hilding Anders was sold through an
auction to Investcorp, a global private equity firm, which intends
to support Hilding Anders with its geographical expansion outside
Europe.
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