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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