Silverfleet Capital to acquire A/S Cimbria
European private equity firm Silverfleet Capital is to acquire A/S Cimbria, a manufacturer of equipment and processing lines for handling and processing of seed and grain, for DKK1,025m (EUR137m).
Completion, which is subject to obtaining clearance from the competition authorities, is expected to occur within the next few months.
The transaction is Silverfleet’s second investment announced within the past few weeks, having also completed the acquisition of La Fée Maraboutée, a French wholesaler and retailer of women’s fashion, for EUR65m on 14 December.
Cimbria, headquartered in Thisted in Denmark, is a global manufacturer of equipment used for either seed processing or post-harvest grain handling. The company’s products include equipment for cleaning, drying and storing grain and seed, as well as conveyors linking equipment in a handling or processing line. Products range from standalone equipment pieces to large custom built project installations. Cimbria operates two production facilities in Denmark, and one in each of Austria, the Czech Republic and Italy, and today has approximately 740 employees. Total sales are approximately DKK1,050m (EUR140m), with EBITDA of DKK145m (EUR19m).
Silverfleet Capital’s fund will acquire a majority investment in Cimbria from Axcel, a Nordic mid market private equity fund, and members of Cimbria’s management team will reinvest a significant amount of money for a minority stake. Debt is to be provided by Nordea.
Gareth Whiley, the partner at Silverfleet Capital with responsibility for the Nordic region and who led the transaction, will join the board as a non-executive director.
“Cimbria is widely recognised for its high-quality products serving the seed- and grain-equipment markets,” says Whiley. “In particular it has an excellent reputation in the fast-growing markets of Eastern Europe, Ukraine and, increasingly, Russia. Expanding demand for grain and other crops, primarily due to population growth, is driving a need for greater agricultural productivity, which Cimbria’s products are well-placed to serve.”
Karsten Larsen who will continue as chief executive of the business under Silverfleet Capital’s ownership, says: “We were attracted to Silverfleet Capital’s international background and strong understanding of our sector. We are looking forward to working together with Silverfleet Capital to take Cimbria through its next stage of development.”
Also working on the deal for Silverfleet Capital were Alfa Chan, who also joins the board as a non-executive director, Johannes Huttunen and Robert Knight, all from Silverfleet Capital’s London office.
This acquisition will be Silverfleet Capital’s sixth from its current EUR670m fund.
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