Wallenbergs EQT, one of the leading international private equity groups,concluded a successful financial year for its funds and portfolio companies. In 2013, sales across EQT’s 60 portfolio companies grew by an average of 11%, and the Groups profit(EBITA) increased in average of 12%. At the end of 2013, the total number of employees surpassed 500,000. The portfolio companies had a combined 2013 turnover of more than EUR 25 billion and an aggregated EBITDA of EUR 2.8 billion . Thomas von Koch, Managing Partner of EQT since March 1, 2014, says: «I strongly believe this positive development is directly linked to EQT’s deep engagement with its portfolio companies, supporting them to become stronger and more
sustainable.
-I feel both proud and privileged to manage EQT and hope to make it the most reputable private equity firm in the world, he says to Nordic News.
Many New Investments
In 2013, EQT funds acquired or made significant new investments in ten companies and made four full and three partial divestments through IPOs. The total enterprise value of the acquired companies was approximately EUR 3.0 billion and
the total enterprise value of the fully divested portfolio companies was approximately EUR 6.3 billion. So far in 2014, five further investments were made and one partial divestment (the IPO of Copenhagen-based global facility services provider ISS).
Conni Jonsson, Chairman of the EQT Holding AB board, said: «Over our 20 years in business, EQT has built a unique platform based on our Nordic heritage, culture and values. We are now firmly established on three continents, with four different investment strategies. Strong governance, highly talented people and a focus on performance, transparency and a responsible approach to ownership continue to be key to EQT’s continued development.»
Three Funds Closed
Three funds closed in 2013: the first EQT Mid Market fund closed above target at EUR 1.054 billion, with a strong commitment from the existing EQT investor base. The fund focuses on mid-market buyouts and growth equity investments in Northern Europe, Greater China and Southeast Asia. EQT’s second infrastructure fund, EQT Infrastructure II, closed at EUR 1.938 billion after 11 months of fundraising and EQT Credit II closed at EUR 845 million, exceeding the fund’s target of EUR 750 million. All three funds are managed on-shore in the Netherlands and the UK.
Selected EQT portfolio company events
· Munksjö merged with Ahlstrom’s Label & Processing business area, forming a
global leader in specialty paper. Shares in the combined entity were listed on
the Helsinki stock exchange.
· Anticimex acquired ISS’ pest control business, significantly strengthening
its global market position.
· Scandic Hotels launched a new hotel chain, HTL, which caters to a new
generation of travelers. It also acquired Norwegian hotel chain Rica, increasing
the total number hotels by almost 50%.
· German online sports retailer internetstores acquired Swedish online outdoor
sports retailer Addnature, creating a joint platform for further European
expansion and growth.
· Bathroom ceramics leader Sanitec and Hong Kong-based discount retailer Japan
Home Centre were successfully listed on the Stockholm and Hong Kong stock
exchanges, respectively.
Portfolio company key figures 2013
Sales: Grew 11% on average in
2013 from 2012
EBITDA: Grew 12% on average in
2013 from 2012
Employees (FTE): More than 500,000 by year end
2013
Consolidated: Sales above EUR 25 billion,
EBITDA EUR 2.8 billion
Acquisitions: 10
Total acquisitions EV: Approximately EUR 3.0 billion
Divestments/Listings: 7
Total divestments EV (full divestments): Approximately EUR 6.3 billion
Celebrating 20 years
In 2014,EQT looks back at 20 years of developing, growing and improving companies while at the same time building the leading private equity firm in Northern Europe. Over this 20-year period, EQT portfolio companies have, on average, ncreased sales by 8%, EBITDA by 12% and the number of employees by 10% each year. EQT is the leading private equity group in Northern Europe, with portfolio companies in Northern and Eastern Europe, Asia and the US with total sales of
more than EUR 25 billion and over 500,000 employees. EQT works with portfolio companies to achieve sustainable growth, operational excellence and market leadership.Strong performance across EQT portfolio companies with sales surge 11% on average and EBITDA up 12% on average.
· Successful IPOs in 2013 included Munksjö, Sanitec and Japan Home Centre, and
ISS in 2014
· Three new funds closed with total commitments of more than EUR 3.8 billion
increasing the investment power of the EQT funds, reports Nordic News.
