3i Group plc (“3i”), an international investor, announces it has agreed to sell its 36.5% stake in HTC Sweden (“HTC”), a leading manufacturer of flooring solutions, to Polaris Private Equity.

The proceeds to 3i of approximately £12 million represent a 119% uplift over March 2012 value of £6 million and a 47% uplift over December 2012 value of £8 million.

3i originally invested in HTC in August 2006 alongside the founder to support an international growth strategy and continued investment in product development. 

Since its investment, 3i has played a leading role in supporting the company’s international expansion through the establishment of subsidiaries in Germany, France and the UK, which expanded the company’s footprint from Sweden and the US. In addition, 3i has strengthened HTC’s management team and board with the introduction of Paul Bergqvist as Chairman (previously vice-president of Carlsberg) and Björn Rosengren as Non-Executive Director (currently also CEO of Wärtsilä).

During its partnership with 3i, HTC has continued to invest heavily in the development of new equipment to maintain its market leading position in the floor grinding industry. Between 2006 and 2012, HTC has grown its revenues by over 50% and profit has more than doubled. In 2012, despite a subdued construction market, revenue grew by 10% to SEK370 million and EBITDA grew to SEK55million, an increase of 36%.

Tomas Ekman, 3i, Partner and Managing Director Nordics, commented: “We are pleased to have supported the founder of the company, Håkan Thysell and HTC in developing and expanding its business internationally. The company has grown its revenue and EBITDA during our partnership and is now well positioned to enter its next phase of development.”

Lars Landin, HTC Chief Executive, said: “Our partnership with 3i has been very beneficial to HTC.  We are pleased with the growth in sales and profit achieved in the past seven years. Our company is on stable footing and very well positioned to continue on its growth trajectory.”

Advisers on this transaction were ABG Sundal Collier as financial adviser and Mannheimer Swartling as legal adviser.

-Ends-

 

For further information, contact:

3i Group plc
Kathryn van der Kroft
Tel: +44 20 7975 3021
Email: kathryn.vanderkroft@3i.com

3i Nordics
Tomas Ekman
Tel: +46 8 506 101 33
Email: tomas.ekman@3i.com

Notes to editors:

All sterling amounts are stated as at current exchange rates except historical book values which are stated at the prevalent exchange rate at the time.

About 3i Group

3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. For further information, please visit: www.3i.com.

About HTC

Based in Söderköping, Sweden, HTC is a leading manufacturer of machines and tools for grinding and polishing of concrete floors with over 170 employees selling its products in over 60 countries.  Its products include grinding and polishing machines and tools, dust extractors, and Twister, a patented, environmental friendly diamond-based disposable cleaning pad which can be used on standard floor cleaning machines.

Regulatory information

This transaction involved a recommendation of 3i Investments plc, advised by 3i Sweden.