3i Group plc (“3i”) today announces that it has agreed the sale of its investment in Aspen Pumps Group (“Aspen”), the global market leader in condensate removal pumps, to Inflexion Private Equity, the mid-market private equity firm.

Proceeds to 3i will be c. £208m, which represents a c. 55% uplift on its 30 September 2019 valuation. Including the £52m of proceeds already received, this represents a 4.1x return on invested capital and a 34% IRR.

Aspen is the global leader in the supply of condensate removal pumps into the fast growing air conditioning market. Aspen has also built an impressive portfolio of brands including Xtra accessory products, JAVAC tools, Advanced chemicals and Big Foot roof support systems. In December 2019 Aspen Pumps celebrated the milestone of selling 1 million pumps in a single year, further cementing its position as the wholesaler’s choice for innovation and reliability.

3i invested in Aspen in 2015 and has supported the company’s transformation from a UK exporter into a truly multinational business with a strong local footprint and people in each of its key geographies. As part of the buy-and-build strategy, Aspen has completed 6 acquisitions in France, Germany, Australia and the UK, enabling international revenues to more than treble over the last 5 years.

Pete Wilson, Partner and Head of UK Private Equity, 3i, commented: “This has been a classic 3i deal, where we have partnered with a high quality management team to support Aspen’s transformation from a UK exporter into a truly multinational business, through a combination of strong organic growth and innovative product development as well as targeted acquisitions. I’d like to thank Adrian Thompson and his management team for their commitment to delivering this plan and wish them all the best in the future.”

Adrian Thompson, CEO, Aspen Pumps, said, “Working with 3i, it was clear from the start that they really understood the business, had significant experience in our sector and brought a great deal of energy and enthusiasm. They have been a fantastic partner, supporting us on the development of our strategy, our acquisitions and on expanding our global footprint.”

Jonny Crane, Partner and Global Head of Industrials, 3i, added: “Aspen is an exceptional business which has been a strong fit with our industrial sector strategy, due to its market leading, innovative products that are increasingly critical to its end users. This has enabled it to build a strong and sustainable market position globally and the business is well positioned to build further on its leadership going forward.”

The transaction is expected to complete in Q1 2020, subject to customary antitrust approvals.

3i’s advisors on the transaction were Robert W. Baird (financial advisor), Travers Smith (legal), Deloitte (financial and tax) and LEK (commercial).

-Ends-

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3i Group plc

Notes to editors:

About 3i Group

3i is a leading international investment manager focused on mid-market Private Equity and Infrastructure. Its core investment markets are northern Europe and North America. For further information, please visit: www.3i.com

About Aspen Pumps

Aspen Pumps Group is the global leader in the supply of condensate removal pumps into the fast growing air conditioning market. Aspen has also built an impressive portfolio of brands including Xtra accessory products, JAVAC tools, Advanced chemicals and Big Foot roof support systems. In December 2019 Aspen Pumps celebrated the milestone of selling 1 million pumps in a single year, further cementing its position as the wholesaler’s choice for innovation and reliability. With offices and warehousing in the UK, France, Germany, USA and Australia, Aspen Pumps Group has become a truly global business on its journey from an East Sussex start up founded by 3 air conditioning engineers in 1995.

Regulatory information

This transaction involved a recommendation of 3i Investments plc.

Luxmet completed their 0,8M€ oversubscribed round led by Innovestor: Advanced high temperature process monitoring and control systems for steel and metal industries.

Heavy industry plays its own significant climate change role. The media often highlights for example air travel and the meat industry as mainly responsible for carbon dioxide (CO2) emissions. But, as a matter of fact, heavy industry is a bigger source of CO2 emissions than air travel and all other transport modes combined.

Luxmet is on an important mission in cutting down CO2 emissions. Its ArcSpec solution is being applied in heavy industry, more specifically in steel production. Steel is now and will continue in the future to be an important part of sustainable development. Without steel, a low-carbon future is not possible: wind power and other renewable energy forms demand steel.

Electric arc furnace enables sustainably produced steel

Steel is produced in two alternative ways: the traditional model is to mine ore and refine it into steel in a blast furnace. Another more environmentally friendly method, is to utilize recycled steel: used metal is melted with electricity in a so-called electric arc furnace. This electric arc method generates merely a third of the CO2 emissions compared with blast furnace technology.

Luxmet’s ArcSpec technology makes electric arc furnaces even more environmentally friendly. According to Luxmet’s CEO Mikko Jokinen:

“Our solution analyzes all essential activities happening inside the furnace and therefore enables the optimization of the whole production process. Temperature’s inside the furnace can reach even 2000 degrees Celsius, so we attach our light-measuring sensors on top of the furnace’s roof. From there the observations are transferred to a nearby computer where the data is analyzed in real time.”

Founded in 2014, Luxmet’s technology is based on research from Oulu University. Jokinen joined the team when the research results were strong enough to start a company. Since then the company has expanded its operations: paying customers can at the moment be found in Finland, Norway, Spain, and Italy.

Going global

At the moment internationalization is at the core of Luxmet’s agenda. To enable it, Innovestor recently lead and organized Luxmet’s funding round. The target was to raise 0,8 million euros and the round was actually oversubscribed.

“We were supposed to have it open for a month but we reached the target in just two weeks”, Jokinen explained, clearly satisfied and excited about the co-operation with Innovestor.

The European Union requires significant CO2 emission reductions for heavy industry in the upcoming decades. This calls for innovations like ArcSpec.

At the moment Luxmet has a clear competitive advantage compared to other players in the domain. Their competitors either cannot deliver real time analyses or they concentrate on just one sub-process. ArcSpec is patented extensively which further strengthens Luxmet’s head start.

“ArcSpec is a result of many trials and errors. We realized early on that an innovation like this cannot be developed in the researcher’s lab. Instead, you need to try things out in actual factories. That is the only way to gather valuable real-life experience. Now our product is ripe and we are ready to go full steam global”, Jokinen sums up.

About Luxmet 

Luxmet has developed a unique solution for real-time measurement of steel production processes. The patented technology developed by the company is completely unique and enables for the first time reliable, real-time monitoring of the steel manufacturing process. The technology has been shown to improve processes by up to 8%. For steel producers, this means not only millions of euros in annual savings, but also more ecological production.

About Innovestor

Innovestor is an early-stage venture capital investor, who actively offers direct co-investment syndication opportunities and builds growth programs.  We manage the largest private venture backed portfolio in the Nordics and have to date invested around 140M€ together with our +500 co-investors. Around +1500 growth companies apply to our programs per year to whom we organize and facilitate +200 events with the support of +200 partners.

HUIZHOU, China–(BUSINESS WIRE)–Dec. 12, 2019– Global investment firm KKR and NVC International Holdings Limited (“NVC International”) (Stock Code:2222) today announced the completion of KKR’s purchase of a majority interest in NVC Lighting’s China lighting business (“NVC China” or the “Company”). With the completion of the transaction, KKR owns 70 percent of NVC China and NVC International holds the other 30 percent.

This press release features multimedia. View the full release here: https://www.businesswire.com/news/home/20191212005229/en/

NVC China is a leading manufacturer of branded lighting products in China, and additionally provides lighting solutions to consumers and business clients through a robust distribution network across the country. Together with KKR and NVC International, NVC China aims to enhance its ability to meet Chinese consumers and businesses’ demand for high-quality lighting products and solutions. With the support of KKR’s extensive operational expertise, the Company will look to adopt enhanced technologies and practices to differentiate itself as an industry innovator in areas such as energy conservation.

Paul Yang, Member and Head of KKR Greater China, said, “NVC China is a true leader in China’s growing lighting market with a well-known brand and world-class operations. KKR will support the NVC China management team and look to accelerate the Company’s expansion plans and identify new opportunities for growth across cutting-edge design, digital optimization, and environmental sustainability. We look forward to working with NVC China’s current operation centers and distributors with strengthened and continuous investment in China, enhancing NVC China’s long-term planning and brand competitiveness, to a win-for-all within NVC’s ecosystem.”

Wang Donglei, Chairman of the Board of NVC International, said, “We are thrilled to welcome KKR as a new shareholder in NVC China to position this business for its next phase of growth. We are confident that the resources and operating expertise that KKR brings to the NVC China team will be extremely valuable for the long-term success of this business. We are excited to remain invested in NVC China alongside KKR which will allow NVC International and its shareholders to continue to benefit from the Company’s future successes.”

NVC China will continue in its commitment to the China market and focus on addressing the increasing demand of Chinese consumers and business clients for high-quality lighting products. The support of KKR’s resources and operational expertise will enable the business to undertake a long-term growth strategy that is also supported by China’s ongoing consumption, industrial and commercial upgrades, as well as the promotion of environmental protection, health and energy conservation. These trends underpin healthy long-term sector growth for the lighting industry in China, and NVC China will invest in its business to ensure the NVC brand stays ahead as a technology and business model innovator.

KKR made its investment from its flagship Asian Fund III. China is a core focus within KKR’s Asia Pacific strategy and will continue to prosper going forward. KKR has deployed more than US$4.6 billion since 2007 to support the development of domestic champions into industry leaders. KKR delivers deep, local expertise to Chinese companies across various sectors through its offices in Beijing, Hong Kong, and Shanghai.

About KKR

KKR is a leading global investment firm that manages multiple alternative asset classes, including private equity, energy, infrastructure, real estate and credit, with strategic partners that manage hedge funds. KKR aims to generate attractive investment returns for its fund investors by following a patient and disciplined investment approach, employing world-class people, and driving growth and value creation with KKR portfolio companies. KKR invests its own capital alongside the capital it manages for fund investors and provides financing solutions and investment opportunities through its capital markets business. References to KKR’s investments may include the activities of its sponsored funds. For additional information about KKR & Co. Inc. (NYSE: KKR), please visit KKR’s website at www.kkr.com and on Twitter @KKR_Co.

About NVC International

NVC International is a leading lighting solutions holding company. It designs, develops, produces, markets and sells a variety of lighting products, with a strong focus on energy-saving and health-promoting lighting products. After the transaction, NVC International will be primarily engaged in its non-lighting business in China and international business, which includes the design, development, production, marketing and sales of lighting products.

View source version on businesswire.com: https://www.businesswire.com/news/home/20191212005229/en/

Source: KKR

Investors:
NVC International IR Team
Victoria Yu/Janet Tang
+852 3970 2238
ir@nvc-international.com; nvclighting@wsfg.hk

Media:
For KKR:
KKR Asia Pacific
Anita Davis, +852 3602 7335
Anita.Davis@KKR.com
Or
KKR Americas
Kristi Huller / Cara Major, +1 212-750-8300
Media@KKR.com

FTI Consulting (for KKR China)
Dee Wang, +86 21 2315 1138
kkrchina@fticonsulting.com

For NVC International:
Victoria Yu/Janet Tang
+852 3970 2238
ir@nvc-international.com; nvclighting@wsfg.hk

UK-based graphene electronics technology company Paragraf announces today the addition of £3.4m to its series A round, with Draper Esprit joining as significant investor, bringing the total to £16.2m. The round was led by Parkwalk and included investment from IQ Capital, Amadeus Capital Partners, Cambridge Enterprise, the commercialisation arm of the University of Cambridge and Partners Investment Company, as well as several angel investors. The additional funding will enable Paragraf to significantly accelerate the delivery of its first graphene-based electronics products to market, transitioning the company into a commercial, revenue-generating entity.

As graphene appears to be reaching its tipping point in many low-cost applications such as road surfacing, paint and clothing where its improved wear resistance properties are offering benefits, the widely speculated, high-performance electronics applications have remained tantalisingly out of reach. Paragraf’s patent-protected break-through approach to graphene synthesis has enabled the company to develop some of the first graphene electronics devices using standard mass production scale approaches.

Paragraf has achieved very early delivery to market of its first product, a super-high sensitivity magnetic field detector with order of magnitude performance enhancements over existing sensors. The technology also provides operational capabilities over temperature, field and power ranges that no other device can currently achieve. On the back of this success the company has made a strategic decision to take on additional financing, enabling the business to super charge its development roadmap.

Dr Simon Thomas, CEO and Co-founder of Paragraf, said: “By accepting additional investment Paragraf is demonstrating its drive and commitment to rapidly productising its game changing graphene technologies, accelerating the timeframe in which these devices can be developed and, importantly, delivered to market.”

David Cummings, Partner at Draper Esprit, said “Graphene is known to be a material with huge potential, but Paragraf’s approach takes this into the realm of the commercially possible. We’re delighted to be able to support this dynamic company in accelerating the delivery of its first graphene-based electronics products and are looking forward to working closely with them as they continue to develop their technology.”

Investment AB Latour (publ) has, through its subsidiary Aritco Group, acquired Invalifts Ltd and Ability Lifts Ltd, based in Birmingham, UK. The companies distribute, install and service platform lifts in the UK and has an annual turnover of about GBP 5 m with 18 employees. The acquisition further strengthens Aritco’s position in the important UK market. Sellers are Mr. Derrick Beck and Mrs. Joy Beck.

“I am excited to welcome Invalifts and Ability Lifts to Aritco Group”, says Martin Idbrant, CEO of Aritco Group. ”Invalifts and Ability Lifts will together with our subsidiary Gartec Ltd, become a market leader in the UK for distribution, installation and service and maintenance of platform lifts.”

“It has been very important for me to find a new owner with strong values and long term perspective that can continue to develop the company in a positive direction, which I am convinced that we have found in Aritco and Latour”, says Mr. Derrick Beck, CEO of Invalifts and Ability Lifts.

Göteborg, 2 December, 2019

INVESTMENT AB LATOUR (PUBL)
Johan Hjertonsson
President and CEO

For further information, please contact:
Martin Idbrant, CEO Aritco group AB, +46 727 15 36 52
Björn Lenander, CEO Latour Industries, +46 708 19 47 36
Aritco Group is a globally leading manufacturer of platform lifts for one-family houses and accessibility adaptation of public/commercial buildings. Sales go through a strong network of local partners in Europe, Middle East and Asia.

Investment AB Latour is a mixed investment company consisting primarily of a wholly-owned industrial operations and an investment portfolio of listing holdings in which Latour is the principal owner or one of the principal owners. The investment portfolio consists of nine substantial holdings with a market value of about SEK 65 billion. The wholly-owned industrial operations has an annual turnover of about SEK 13 billion.  

• Press release 2019-12-02