European private equity firm Cinven has agreed to acquire Coor Service Management Group, the leading integrated facilities management company in the Nordic region, from 3i for a total of a
European private equity firm Cinven has agreed to acquire Coor Service Management Group, the leading integrated facilities management company in the Nordic region, from 3i for a total of around EUR540m.
Coor specialises in managing, developing and streamlining service functions for offices, properties and factories, provided under long-term contracts to a wide range of blue-chip companies and public institutions across the Nordic region. In 2006, Coor delivered net sales of SEK3,972m (EUR430m).
Cinven expects sales and profits to continue to grow strongly in the future, noting that the Nordic region is one of the most attractive integrated facilities management markets in Europe with high growth dynamics as companies and public institutions shift to outsourcing. Coor has outperformed this growing market over the past few years, and Cinven says it will continue to invest in the business to capitalise on significant opportunities for future growth.
The private equity firm has experience in the support services sector, most recently in leading the buyout of Comax, then the fourth largest integrated facilities management company in the UK, from the British government. It also led the buyout of Gardner Merchant. Cinven is an active investor in the Nordic region through its investments in Ahlsell, Phadia and AssiDoman Packaging (now part of Smurfit Kappa).
‘We are delighted to have acquired Coor,’ says Cinven partner Hugh Langmuir. ‘It has an excellent management team executing a business model which outperforms, with excellent growth prospects. The overall market outlook is attractive, especially for a company with Coor’s high quality operations. We look forward to working closely with Coor’s management in order to create value for all stakeholders in the business.’
Mats Jönsson, chief executive and president of Coor Service Management, says: ‘This is an exciting period in Coor’s development, and I believe that Cinven’s significant sector experience and financial strength make them the ideal partner. We look forward to working closely as we implement our growth strategy.’
