Category Archives: News

CVC’s Strategic Opportunities platform agrees to acquire 50% stake in DFE Pharma

Platform announces its second deal from Fund II which held its final close in July

CVC Strategic Opportunities II today signed an agreement to acquire a 50% stake in DFE Pharma (“DFE”), a leading global excipients manufacturer for the pharmaceutical industry. DFE is currently a 50/50 joint venture between dairy companies FrieslandCampina and Fonterra. CVC Strategic Opportunities II will acquire Fonterra’s holding in the business.

Headquartered in Goch, Germany, DFE is a global leading excipient manufacturer. Excipients are the inactive substances that are blended with the active ingredients in medicine for purposes such as binding, bulking, disintegration or to aid in the processing of the active ingredient. With operations in Europe, India and New Zealand and an active presence in over 100 countries, DFE develops, produces and markets excipients primarily for oral solid dose and dry powder inhalation.

Bas van Driel, CEO of DFE Pharma said: “We are excited to be partnering with CVC and look forward to working with them to continue to deliver the best possible solutions to our customers. The combination of FrieslandCampina and CVC as shareholders will provide extra opportunities to excel. CVC’s international network, experience and track record in pharma, as well as support capabilities will be essential in expanding the breadth of our business and exploring potential M&A opportunities.

“On behalf of DFE management, I would like to thank Fonterra for its ownership and, together with FrieslandCampina, for creating DFE in 2006 and allowing it to grow into the world leader in pharma grade lactose excipients, known for its very high quality.”

Kathy Fortmann, President FrieslandCampina Ingredients: “The addition of CVC Capital Partners will facilitate DFE’s growth ambitions over the medium and long term. We thank Fonterra for being constructive partners for the last decade and are confident that the ongoing supply relationship will be mutually beneficial.”

Thierry Bogaert, CVC Industrial Partner said: “DFE supplies mission critical products to the pharma industry. We look forward to the partnership with FrieslandCampina and working with the DFE management team to further enhance and expand the business, providing the full support of the CVC network.”

Jan Reinier Voûte, Co-Head CVC Strategic Opportunities added: “This is the second deal announced from Strategic Opportunities Fund II following its final close in July 2019. The Strategic Opportunities platform invests in high-quality businesses with longer growth horizons and the investment in DFE fits perfectly within this strategy, especially with the joint ownership with FrieslandCampina.”

Fonterra CEO, Miles Hurrell, said: “We would like to thank the DFE management team and our partner FrieslandCampina for the great relationship over the years, which we are pleased will carry on via the ongoing supply of Fonterra’s pharma grade lactose to DFE.”

The transaction is subject to customary regulatory approvals.

Goldman Sachs New Zealand Limited acted as exclusive financial advisor, Russell McVeagh and HVG Law as legal advisors to Fonterra. FrieslandCampina was advised by Allen & Overy, and CVC Capital Partners by Rothschild & Co, Freshfields Bruckhaus Deringer and KPMG.

 

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CapMan enters Nordic distribution partnership with Nordea

September 25, 2019

CapMan Press Release
25 September 2019 at 1.00 p.m. EEST

CapMan enters Nordic distribution partnership with Nordea

CapMan has commenced co-operation with Nordea regarding the distribution of CapMan Nordic Property Income Fund (“CMNPI”), a non-UCITS fund managed by CapMan. As a result, CMNPI will become part of Nordea’s product offering, enabling their customers to subscribe for the fund in a convenient manner.

CMNPI was established at the end of 2017 and is one of few non-UCITS funds investing in real estate with a Nordic scope. The fund has completed a total of nine transactions to date in Finland, Sweden and Denmark. The fund’s assets are diversified across various property types and its gross asset value has reached EUR 130 million. From the fund’s inception date to today, the fund has returned approx. 13%.*

“This distribution partnership combines two strong brands. CapMan’s long experience in investing in Nordic real estate markets and its alternatives asset class know-how meet Nordea’s strong networks and market leading wealth management practice in the Nordics. CMNPI has had a flying start and the first year for the fund has provided excellent returns.* The expanded distribution enables us to significantly grow the fund size while offering a wider group of investors a cost-efficient way to diversify their real estate investments across geographies and different property types,” comments Mika Matikainen, Managing Partner and Head of CapMan Real Estate.

Following the distribution agreement, CMNPI becomes part of Nordea’s product portfolio and enables the distribution of the fund directly to Nordea’s customers. The threshold to invest becomes lower as investors can subscribe for the fund starting from an investment of EUR 5,000.

“CapMan’s strong know-how and specialised alternative assets expertise, including expertise in real estate, broadens Nordea’s investment product offering and provides access to a high-quality Nordic real estate fund for Nordea’s wealth management customers. CapMan also has other products positioned for professional investors that we can include in our product offering at a later stage. Co-operation with strong fund managers is important for Nordea as we want to maintain our position as the best and most awarded wealth manager in the Nordic countries also in the future,” says Tanja Eronen, Co-head, investment products at Nordea.

“We are extremely pleased with the co-operation with Nordea, which is a great example of the execution of our strategy. The distribution agreement allows a more diversified group of investors to benefit from the local expertise and networks of our Nordic real estate team. In the future, we may expand the product portfolio offered through partners also to other product categories,” says Joakim Frimodig, CapMan’s CEO.

CMNPI is an open-ended investment fund (non-UCITS) which accepts new subscriptions on a quarterly basis. The fund enables easy access to the Nordic real estate market by increasing the allocation into alternative asset classes through the diversification of the portfolio by geography and property type. The fund focuses on stable income generating properties in the largest and most liquid Nordic cities with solid long-term growth fundamentals. The fund’s assets are professionally managed commercial properties, such as office, logistics and light industrial properties.

The fund is managed by CapMan AIFM Ltd, an alternative investment manager (AIFM) licensed and supervised by the Finnish Financial Supervisory Authority.

Additional information and KIIDs:
Mika Matikainen, Managing Partner, Head of CapMan Real Estate, tel. +358 40 519 0707
Tanja Eronen, Co-head, investment products, Nordea, tel. +358 40 7447482

https://www.capman.com/real-estate/nordic-property-income/

* Past performance is no guarantee for future returns. The value of the money invested in the fund can increase or decrease and there is no guarantee that all or any of your invested capital can be redeemed. Prior to making any investment decisions investors shall get acquainted with the relevant information materials concerning the fund as well as the risks associated with investing in the fund. The fund’s official information materials can be obtained from the website mentioned above.

CapMan is a leading Nordic private asset expert with an active approach to value creation. We offer a wide selection of investment products and services. As one of the Nordic private equity pioneers, we have developed hundreds of companies and real estate assets and created substantial value in these businesses and assets over the past 30 years. Our objective is to provide attractive returns and innovative solutions to investors. We have a broad presence in the unlisted market through our local and specialised teams. Our investment strategies cover Private Equity, Real Estate and Infra. We also have a growing service business that includes procurement services, fundraising advisory, and analysis, reporting and wealth management services. Altogether, CapMan employs 140 people in Helsinki, Stockholm, Copenhagen, London, Moscow and Luxembourg. More information at www.capman.com.

 

 

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Greycroft and LiveOak Venture Partners Lead $3M Seed Funding Round for CyberFortress

LiveOak

Chief executive Huw Edwards announced Wednesday CyberFortress had closed a $3 million seed funding round co-led by New York-based private equity firm Greycroft and Austin-based LiveOak Venture Partners.

Monte Tulum Capital, which had invested in CyberFortress’s pre-seed round, is also participating in the latest funding. Porthcawl Holdings, Jungle Disk’s parent company, provided pre-seed financing in 2018.

The San Antonio-based insurtech (insurance technology) startup will use the $3 million investment to accelerate its product launch in Texas in early 2020, Edwards said.

Launched in 2018 by former Rackspace employees Huw Edwards and Michael DeFelice, the San Antonio-based startup offers tailored insurance policies to protect small- to medium-sized e-commerce companies from cyber threats. Most insurance providers tend to tailor their cyber insurance policies for large-scale enterprises, requiring upfront payment of large annual premiums. They also lack historical data to quantify cybersecurity risks.

CyberFortress is building a deep machine learning-based approach to quantify all risks of online revenue interruption for e-commerce companies, whether from cyberattacks, internal server errors, or third-party e-vendor failure.

That differentiation is coupled with its customer-centric approach: Easy-to-understand policies, a straightforward application process, fast payouts in the event of a claim, and the ability to pay for annual premiums in monthly installments rather than in a lump sum.

Given that most small business owners lack the robust reserves of larger companies, they may face bankruptcy in the aftermath of prolonged online interruption in their e-commerce. CyberFortress’ business interruption policy features make this new type of insurance uniquely small business-friendly.

“A small e-commerce company can’t afford to spend months engaging with their insurance company waiting for a payout,” Edwards said “If they can’t collect revenue, they may not be able to make their next payroll. Our policy is laser-focused on solving this critical problem for small businesses.”

CyberFortress launched its Downtime Risk Assessment at the conclusion of its participation in the Plug and Play insurtech accelerator program earlier in 2019. The free assessment helps e-commerce companies reduce their risk of events that could lead to downtime.

The assessment’s continuous collection of data from thousands of features and technology choices evaluated over time provide a fact-based, probabilistic assessment of a company’s exposure to suffering e-commerce downtime.

Will Szcerbiak is leading the investment for Greycroft, a seed-to-growth venture capital firm that has over 300 investments across the tech sector.

“Their underwriting is efficient, and the rapid, automated payment of claims will make for a delightful customer experience,” Szcerbiak stated. “These characteristics are unusual in the commercial insurance universe, and we believe they will set CyberFortress on a path to scale.”

Joining the startup’s board of advisers is Katie Wade, the former Connecticut Insurance Department commissioner with more than 20 years of industry experience in public policy and regulatory compliance. Venu Shamapant, a founding LiveOak Venture partner, also joins the CyberFortress board of directors with this financing.

Based in Austin, LiveOak is a venture capital fund specializing in full-cycle investing in Texas-based startups. They invested in San Antonio before, notably in the cybersecurity company Infocyte four years ago. Shamapant continues to believe “San Antonio has interesting depth in pockets of advanced tech.”

“What caught our attention about CyberFortress is the experience of their team with small- and medium-sized businesses and e-commerce businesses — they have a deep understanding of the pain points in that market segment,” Shamapant said. “That, coupled with an innovative solution, got us excited about the opportunity to back this team in their efforts to revolutionize the cyber insurance industry.”

Others recognize the groundbreaking nature of what CyberFortress is developing. The startup has been working with a team of Milliman consultants to develop and validate its risk model. The consulting firm is the largest independent provider of actuarial and risk management services to the insurance industry.

“The insurance product we are helping CyberFortress develop is a revolutionary approach to identify and insure risk to e-commerce revenue streams,” said Sheri Scott, principal actuary and the CyberFortress consulting team lead at Milliman.

Insurance industry stakeholders are also taking notice of the San Antonio startup, Edwards said, as he attended Insure Tech Connect, the largest insurtech conference, this week.

“We’re finding that it’s [insurance] carriers and brokers that are now showing interest in insurtech solutions — they recognize the need to partner with insurtech startups,” Edwards said. “We need to work with these partners because very few startups can become major carriers overnight.”

The $3 million funding round will be put to work to expand the team and fuel its growth in the Texas market. While the CyberFortress team of eight employees has deep expertise in cybersecurity, data science, risk management, they are looking to hire developers and business development staff.

“The capital will be used to secure partnerships with e-commerce and other providers, and to scale, not to sit in a bank account,” Edwards said.

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Montagu Private Equity to acquire Jane’s from IHS Markit

Montagu

Montagu Private Equity (“Montagu”) today announces that it has reached an agreement to acquire Jane’s (“the Company”) from IHS Markit.

Jane’s is a leading provider of open source intelligence, providing timely information and data for the aerospace, defence and security industries. These insights are underpinned by a team of global analysts, covering areas ranging from information on military capabilities and budgets to national threat intelligence and defence markets forecasts.

Jane’s is a respected, trusted partner of the world’s top governments and national security agencies, as well as the largest aerospace and defence businesses. The Company was established in 1898 and has built its reputation through 120 years of service, delivering critical intelligence to its customers across the world.

Jane’s has over 300 staff based in strategic locations and works with over 600 contributing experts globally. Following completion, Jane’s will operate as a standalone business led by Blake Bartlett and his senior leadership team. Montagu intends to leverage its extensive expertise and network, working closely with Jane’s leadership team to continue the company’s growth trajectory and build upon its strong brand.

Ed Shuckburgh, Director at Montagu, said: “Jane’s is well positioned to benefit from a world which is growing increasingly reliant upon data-driven intelligence. Jane’s insights are respected and valued across the aerospace, security and defence industries and we look forward to working with Blake and his leadership team deliver on the next step in their growth strategy”.

Blake Bartlett, CEO at Jane’s added: “We will continue to focus on providing valuable insight to our customers around the world and we look forward to working closely with Montagu on further strengthening Jane’s offering and service.”

Jane’s currently sits within IHS Markit’s Transportation division alongside its Automotive and Maritime industry subsegments. Jane’s was original acquired by IHS Markit in 2007 from The Woodbridge Company and under IHS’ ownership, the business has accelerated its transition from a publisher into a digitally driven, data, information and intelligence provider.

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Investor’s ownership in EQT

Investor

2019-09-24 08:15

In conjunction with today’s first day of trading of EQT AB on Nasdaq Stockholm, Investor AB has, as communicated on September 2, 2019, pro-rata together with partners, sold a limited share of its holding in EQT AB in order to secure a free float of the share. Following the sale, Investor’s ownership amounts to 176,739,596 shares in EQT AB, equivalent to 18.5 percent of the company. Proceeds to Investor will amount to SEK 1.6bn.

In October, Investor may come to sell an additional maximum of 2,451,580 shares at the listing price dependent on the advisory banks’ utilization of the over-allotment option. Investor, being the largest owner, has in accordance with market practice, entered into a securities lending agreement with the advisory banks encompassing 10,396,188 shares for one month in order to facilitate the handling of the over-allotment option.

The sale and the lending of Investor’s shares in EQT AB will be reported to the Swedish FSA’s PDMR transactions register.

Investor’s engagement in EQT is long-term.

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Blackstone launches Mileway – largest last mile logistics real estate company in Europe

Blackstone

London, 24 September 2019 – Blackstone announces today the launch of its pan-European last mile logistics real estate company, Mileway. The new company owns and operates approximately 1,000 logistics assets that have been acquired by real estate funds managed by Blackstone over the last several years.

Mileway’s logistics properties, which are predominantly located within and around major European cities serving the last mile needs of its tenant base, total more than 9 million square meters. The portfolio spans urban centers across Europe’s largest economies, including the UK, Germany, France, Spain, the Netherlands and the Nordics. The company will continue to expand its portfolio in existing and new markets.

Emmanuel Van der Stichele has been appointed the Chief Executive of Mileway.

James Seppala, Head of Blackstone Real Estate Europe:
“Mileway is a natural evolution of our European logistics strategy, which is one of our highest conviction, long-term investment themes. As the largest last mile logistics real estate company in Europe, Mileway will meet growing e-commerce-related demand for last mile logistics real estate, facilitate faster delivery times and support the growth of small and large businesses.”

Emmanuel Van der Stichele, CEO, Mileway:
“The growth of e-commerce and urbanization is intensifying the requirement for faster logistics solutions. Mileway is the number one gateway to urban markets, and we are uniquely positioned to help businesses shorten delivery times, grow their customer base and scale geographically.”

Emmanuel Van der Stichele was previously Fund Director of the Goodman European Logistics Fund, one of the largest European non-listed logistics funds with approximately €3.5 billion of assets under management. Dominiek Van Oost has been appointed Chief Operating Officer and Thomas ten Bokum will start as the new Head of Investment and Portfolio Management in October 2019.

Blackstone is one of the leading owners of logistics properties globally, with assets across North America, Europe and Asia. The launch follows a number of investments by real estate funds managed by Blackstone in the logistics sector globally. Since 2010, Blackstone has acquired nearly 1 billion square feet of logistics globally.

About Mileway
Mileway is the largest owner of last mile logistics real estate assets in Europe. It has a pan-European footprint, with approximately 1,000 assets across eight major European economies. Core markets of the UK, Germany, the Netherlands and France represent over 80% of the portfolio, with a growing presence in the Nordics and Southern Europe. The business is headquartered in Amsterdam, and has a dedicated team of over 150 employees, with a local presence in each of its markets.
To find out more, visit: www.mileway.com 

About Blackstone Real Estate
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has $154 billion of investor capital under management. Blackstone is one of the largest property owners in the world, owning and operating assets across every major geography and sector, including logistics, rental housing, office, hospitality and retail.

Contact:
Blackstone
Ramesh Chhabra / Alexandra Ritterman
Ramesh.Chhabra@blackstone.com / Alexandra.Ritterman@blackstone.com
+44 7738 935187 / +44 7778 487939

Mileway
Olga Kononova
Olga.Kononova@lmlogistics.com

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Deli Home Holding B.V. aims to strengthen position through acquisition of Weekamp Deuren

NPM Capital

Gorinchem, the Netherlands, 24 September 2019

NPM Capital portfolio company Deli Home, a manufacturer and distributor of constructive and decorative homewares, is announcing that it has reached agreement on the acquisition of Weekamp Deuren (‘Weekamp’). The proposed takeover will be submitted for approval to the Netherlands Authority for Consumers & Markets (ACM) and is expected to be completed in mid-November 2019.

The Deli Home and Weekamp project ranges are perfectly complementary. Whereas Deli Home and its subsidiary Skantrae enjoy a particularly strong position in interior doors, Weekamp has been dominant in exterior doors. Skantrae is primarily a trading company, while Weekamp excels in customised products. This makes the proposed takeover a natural next step, one which is in line with the company’s strategy of international expansion, economies of scale, customised solutions and in-house production.

The new alliance will enable Deli Home to provide even better services to its customers, as well as providing opportunities for growth for both companies within all the industries in which they currently operate. In addition, there are synergy benefits to be gained for both companies in areas such as purchasing, manufacturing, stocks and logistics, while the two companies will also be able to use and increase their expertise more effectively. Together, they will represent a major force in the door market, with more than €100 million in revenue and nearly 1,000 employees. Both companies will continue to operate from their current sites following the acquisition, with no fundamental changes.

Johan Weekamp (CEO Weekamp Deuren): “In Deli Home, we have found the best possible partner to take our company to the next level. My brother and I have spent the past 40 years writing an exciting boys’ adventure novel of sorts, and in taking this next step we will be able to offer our employees, customers and suppliers the continuity they deserve in the future, plus the guarantee that our high-quality products will remain widely available for many years to come.”

Victor Aquina (CEO Deli Home): “Weekamp offers us a unique opportunity to invest, earlier than we would have been able to otherwise, in customised products for our range of doors, which is very important for our company. It is completely in line with our strategy. Furthermore, Weekamp is a family business, just like the other subsidiaries previously acquired by Deli Home. This underscores our commitment to enterprise, passion and technical expertise.”

About Deli Home
Deli Home is the producer of high-end brands such as CanDo, Bruynzeel, Lundia and Skantrae. The company also manufactures and distributes timber, doors, floors and staircases, storage products, insect screens and sanitary products. Deli Home employs a staff of 800 people, operates in a total of 10 countries, and generates revenue of €260 million.

Deli Home’s mission is to streamline complex tailor-made solutions for the DIY and professional markets in order to make outstanding workmanship available to anyone. Deli Home invests in corporate social responsibility (CSR) through sustainable production, long-term employability and responsible forest management. Timber is what connects all these various product groups: woodwork is very much in our DNA.

About Skantrae
Skantrae B.V., a subsidiary of Deli Home Holding B.V., is based in Zevenaar, the Netherlands. The company has been operating in the door market for more than 40 years, specialising in the manufacture of doors, accessories and services for the wholesale market (building materials and retail).

With a stock of 120,000 doors, 35,000 fibre-optic packages and 35,000 door handles, Skantrae can deliver at short notice. The trendsetting company develops new lines of doors and concepts in-house, ensuring that it can offer a competitive and up-to-date product range at all times. Skantrae employs 130 people and generates revenue in excess of €50 million.

About Weekamp
As an independent family business established in 1978 and based in Dedemsvaart, the Netherlands, Weekamp manufactures doors for both serial and standalone new construction projects, as well as for large-scale home renovation. The company supplies to wholesalers (building materials and retail) as well as to the woodwork industry and contractors.

Weekamp’s in-house production at its manufacturing facilities in the Czech Republic and Indonesia enables the company to provide an appropriate solution for any situation. Weekamp also operates from sites in Dedemsvaart, the Netherlands (head office) and has a sales office in the United Kingdom. The company’s annual revenue is more than €50 million and it employs 850 people.

Read the profile of Deli Home

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NPM Capital acquires Zorgwerk from ADG dienstengroep

NPM Capital

ADG dienstengroep and NPM Capital announced today that they have reached agreement on NPM Capital’s acquisition of Zorgwerk. The proposed takeover will be submitted for approval to the competent authorities and is expected to be completed by the end of this year. 

Zorgwerk is the market leader in the Netherlands in staffing services for healthcare, social assistance and child care. The strength of the company lies in the digital transformation that Zorgwerk already has initiated back in 2005, which involved creating a fully online platform used on a daily basis by thousands of healthcare professionals across the Netherlands. This platform enables Zorgwerk to match the supply of and demand for healthcare professionals efficiently and effectively. This involves short-term services (including emergency services) provided daily by organisations operating in a variety of sectors (including nursing and care, home care, healthcare and mental health care). Care professionals favour Zorgwerk because the platform provides them with the flexibility and empowerment they need. This is consistent with the public demand among care professionals for greater independence.

Driving further growth

Johan Terpstra, Managing Director of NPM Capital: “We are very excited to be given this opportunity to invest in Zorgwerk. The management, led by CEO Daniëlle van der Burg, were able to successfully digitise their business model, giving them a head-start we would like to build on further. We will be giving the team the freedom and opportunity to achieve their goals and further grow the company. We believe that, in partnering with the Zorgwerk team, we will do an even better job of matching the supply of and demand for care workers using digital resources and will provide improved services to care institutions in a variety of sectors through temporary and well-qualified care workers.”

Hans Kroeze, CEO of ADG dienstengroep: “Zorgwerk has gone from strength to strength in recent years operating under the auspices of ADG. It substantially increased its client base, revenue and profit, while at the same time contributing to ADG’s further growth. I firmly believe that Zorgwerk’s strategy will continue to thrive – and may be accelerated where necessary – with NPM Capital as its new shareholder.”

Daniëlle van der Burg, who will remain Zorgwerk’s CEO once the acquisition is completed, is looking forward to working with NPM: “In NPM Capital, we have found a strong partner that supports our growth objectives. Our employees and clients are central to our culture, with the main goal being innovating and improving our business processes. It is this combination to which we owe our leading position and excellent reputation in temporary staffing solutions for providers of care services. With NPM as our new owner, I see great potential for further improving our strategy and accelerating our growth.”

The acquisition of Zorgwerk will not affect any jobs: all staff will remain employed by Zorgwerk, while Daniëlle van der Burg will continue to serve as CEO.

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EQT portfolio company Hector Rail Group to sell UK subsidiary GB Railfreight

eqt

  • EQT Infrastructure portfolio company Hector Rail Group to sell its UK subsidiary GB Railfreight, a leading rail freight operator in the United Kingdom, to Infracapital
  • During EQT’s tenure, GB Railfreight has experienced substantial growth through organic expansion of the contract portfolio into new segments and customers, and revenues have grown by 60%, while the fleet has increased by some 40%
  • Following the sale of GB Railfreight, EQT continues to own the remaining Hector Rail investment consisting of Hector Rail AB, with operations across Scandinavia, and Hector Rail GmbH, with domestic operations in Germany

EQT Infrastructure II (“EQT Infrastructure” or “EQT”) today announced that its portfolio company Hector Rail Group (“Hector Rail Group” or “Hector Rail”) has entered into a definitive agreement to sell GB Railfreight Limited (“GB Railfreight” or the “Company”) to Infracapital, the unlisted infrastructure equity arm of M&GPrudential (“Infracapital”).

Founded in 1999, GB Railfreight is the third largest rail freight operator in the UK and provides essential freight and non-freight haulage services to its customers. The Company’s team of 900 people operates well above 1,000 trainloads a week, moving approximately 23 percent of UK’s rail cargo. The Company has a fleet of over 180 locomotives and 1,500 wagons, transporting goods for a wide range of customers, including Network Rail, MSC, Bombardier, Drax, Tarmac and Aggregate Industries.

GB Railfreight was acquired by EQT Infrastructure II, through its existing portfolio company Hector Rail, in November 2016. The strategy during EQT’s ownership has been focused on driving sustainable growth, expanding into new segments and customers while continuing to provide best-in-class, environmentally friendly transport solutions in the UK rail market. Commercial initiatives have been supported by investments into the locomotive fleet, where locomotives and wagons have been acquired to further accelerate growth.

During EQT Infrastructure’s ownership, GB Railfreight successfully expanded its contract portfolio by adding additional contracts from both existing and new customers, and significantly increased its share of the UK rail freight market. There has been strong focus on driving expansion in the high-growth intermodal segment, with several new routes having been launched. Since 2016, GB Railfreight has expanded from being a one port only operator, to now having presence in several larger deep-sea ports in the UK, e.g. Felixstowe, Southampton and London Gateway. Over the course of EQT Infrastructure’s ownership, revenues have grown by 60%, while the fleet has increased by some 40%.

John Smith, CEO and founder of GB Railfreight, comments: “Together with EQT, the Company has been able to continue on our strong growth trajectory, adding a range of new freight services across the UK rail network and supporting the growth of the UK economy by transporting goods and materials across the country. We continue to see strong demand for our services and look forward to entering the next phase of growth together with our new owners.”

Anna Sundell, Managing Director at EQT Partners and Investment Advisor to EQT Infrastructure, adds: “GB Railfreight has continued to grow and gain market share while continuing to foster a strong safety-oriented culture and best-in-class operations, ensuring that the Company can deliver high-quality services to all its customers. Management and the entire GB Railfreight team have done a fantastic job. With the ever-increasing demand for environmentally friendly transport solutions, GB Railfreight continues to be very well positioned to continue on its strong trajectory under Infracapital’s ownership.”

Following the sale of GB Railfreight, the remaining part of Hector Rail, consisting of Hector Rail AB with operations across Scandinavia and Hector Rail GmbH with operations in Germany, stands well prepared to continue its strong trajectory as independent train haulage and traction provider in the European rail transport market. Hector Rail offers environmentally friendly transportation services of heavy industry products, raw materials and intermodal freight to clients such as industrial companies, forwarders, and other transport companies.

The transaction is expected to close mid-October 2019.

Deutsche Bank AG acted as financial advisor and Clifford Chance LLP and Simpson Thacher & Bartlett LLP as legal advisors to EQT Infrastructure.

Contact
EQT Press Office, press@eqtpartners.com, +46 8 506 55 334

About EQT
EQT is a leading investment firm with more than EUR 62 billion in raised capital and around EUR 40 billion in assets under management across 19 active funds. EQT funds have portfolio companies in Europe, Asia and the US with total sales of more than EUR 21 billion and approximately 127,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.

More info: www.eqtgroup.com
Follow EQT on Twitter and LinkedIn

About GB Railfreight
Founded in 1999 and headquartered in London, United Kingdom, GB Railfreight is the third largest rail freight operator in the United Kingdom, with a turnover in excess of GBP 200m. GB Railfreight is one of the fastest growing companies in the UK railway sector and transports goods and provides services for a wide range of customers.

About Infracapital

Infracapital, the unlisted infrastructure equity arm of M&GPrudential, invests in, builds and manages a diverse range of essential infrastructure to meet the changing needs of society and support long-term economic growth. We take an active role in all of our investments, whether nascent or large, to fulfil their potential and ensure they are adaptable and resilient. Our approach creates value for our investors, as we target investments with the scope for stable and sustainable growth. Our portfolio companies work closely with the communities where they are based, to the benefit of all stakeholders. Infracapital is well positioned to deliver the significant investment required to help build the future. The founder-led team of experienced specialists has worked with 50 companies around Europe and has raised and managed over £5 billion across five funds.

M&GPrudential is a leading savings and investments business which was formed in 2017 through the merger of Prudential plc’s UK and Europe savings and insurance operation and M&G, its wholly-owned international investment manager.  In March 2018, Prudential plc announced its intention to demerge M&GPrudential and give it a premium listing on the London Stock Exchange. In August 2019, M&GPrudential announced its intention to list its shares under the name M&G plc when it demerges from Prudential plc in the fourth quarter of this year.

www.infracapital.co.uk

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Blackstone sells its 61% stake in Hembla AB to Vonovia SE

Blackstone

London, 23 September 2019 – Blackstone Real Estate Partners Europe IV and its affiliates (“Blackstone”) announce the sale of their 61% shareholding, which controls 69% of the voting rights, in Hembla AB to Vonovia SE, for SEK 215 per share.

Hembla AB is a property company that focuses on owning and developing rental residential properties in Greater Stockholm. It has a portfolio of 21,411 apartments and over 5,000 additional apartments in its development pipeline. Hembla AB has over 7,000 shareholders and is listed on Nasdaq Stockholm.

The sale price of SEK 215 per share represents a premium of 11.5% compared to the closing price for Hembla AB class B shares on Nasdaq Stockholm on 20 September 2019 and a premium of 15.6% compared to the volume-weighted average share price on Nasdaq Stockholm in the last three months.

Completion is expected to occur in the fourth quarter of 2019.

James Seppala, Head of Real Estate Europe, Blackstone and Chairman of Hembla AB, said:
“We invested in Hembla in 2016, and are honoured to have been able to contribute, alongside Hembla’s  independent board members, other shareholders and its excellent management team, to the company’s significant development and growth. Hembla’s unwavering focus on its tenants, and on reinvesting 100% of its income back into its properties, is what has made the business so successful, and we are thrilled that the company will continue to thrive under Vonovia’s stewardship. Sweden remains a core region of focus for us and we look forward to continuing to invest meaningful capital here going forward.”

About Blackstone Real Estate:
Blackstone is a global leader in real estate investing. Blackstone’s real estate business was founded in 1991 and has $154 billion of investor capital under management. Blackstone is one of the largest property owners in the world, owning and operating assets across every major geography and sector, including logistics, rental housing, office, hospitality and retail.

Media Contacts:
Blackstone (UK)
Ramesh Chhabra / Alexandra Ritterman
Ramesh.Chhabra@blackstone.com  / Alexandra.Ritterman@blackstone.com
+44 7738 935187 / +44 7778 487939

Urban Advisors (Sweden)
David Ibison
david@urbanadvisors.se
+46 72 371 75 09

Categories: News