EQT VI has acquired the Anticimex Group, a provider of pest control, food safety and adjacent services, from Swedish listed private equity firm Ratos for an enterprise value of approximately SEK 2.9 billion ($0.4 billion). Anticimex was founded in 1934 in Sweden.
EQT VI acquires 100% of the Anticimex Group, Northern Europe’s leading provider of pest control, food safety and adjacent services, from Swedish listed private equity firm Ratos for an enterprise value of approximately SEK 2.7 billion ($0.4 billion) EQT VI will continue to develop Anticimex through further product and service expansion in Sweden as well as an accelerated internationalization Anticimex was founded 1934 in Sweden and is today a leading Northern European service company providing safe and healthy indoor environments through inspections, guarantees and insurance. Services include pest assurance, hygiene assurance, dehumidification, fire protection as well as property transfer and energy surveys. The company has around 1,300 employees and operations in Sweden, Norway, Finland, Denmark, Germany and the Netherlands. Anticimex has enjoyed 77 years of uninterrupted growth and for 2011, sales amounted to close to SEK 2 billion.
The company serves around 2 million customers and has an exceptionally strong brand with a unique market position, a loyal customer base and a successful business model. Anticimex has its own distribution channels as well as franchise networks and partners such as insurance companies and real estate agents.
Ratos acquired Anticimex at the beginning of 2006. During the holding period the original operations have grown and been expanded with new service areas. Sales have increased by approximately 7% per year from SEK 1,275m in 2005 to SEK 1,927m in 2011 and operating profit has risen from SEK 118m in 2005 to SEK 192m in 2011.
Ratos CEO Arne Karlsson comments: “Anticimex has a unique position with a successful business model, a strong brand and growth every year since its formation in 1934. Stable cash flows and good sales increases have made Anticimex a very successful investment for Ratos. EQT will now take over as the new owner and further develop the range of services both in Sweden and in other markets.”
The selling price for 100% of the shares (equity value) amounts to approximately SEK 1,775m and the enterprise value is approximately SEK 2,900m. Ratos’s share of the equity value amounts to SEK 1,530m and the exit gain amounts to approximately SEK 940m, calculated on the book value in Anticimex at 31 December 2011. The final exit gain will be affected, among other things, by Ratos’s share of profit from Anticimex during the period until final completion of the deal and by a potential earn-out payment. The average annual return (IRR) amounts to approximately 24%, before a potential earn-out payment. Ratos’s holding in Anticimex is 85%. Co-owners are the company’s board and management.
The transaction is subject to approval from the relevant authorities and is expected to be completed at the end of the second quarter.
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