Nordic Capital to sell Mölnlycke Health Care to Apax Partners Funds
21 April 2005
Nordic Capital and other major shareholders have entered into a
definitive agreement to sell Mölnlycke Health Care to funds advised
by Apax Partners. The sale will enable the further development of
one of the world's leading manufacturers of single use surgical and
wound care products
Nordic Capital was instrumental in creating Mölnlycke Health
Care in 1997 through the simultaneous acquisition and structural
merger between the Clinical Division of Swedish SCA and Finnish
Tamro's Kolmiset Division. During Nordic Capital's ownership the
company has developed strongly and evolved into a large global
player. This includes extensive restructuring for improved
profitability and substantial growth including the 2001 acquisition
of Johnson & Johnson's surgical care products, in all
essentially tripling the size of the business. 2004 brought
improved profitability, a stronger cash flow and reduced debt
making it the most successful year in the company's history
"Mölnlycke Health Care has had an impressive development during
Nordic Capital's eight year ownership. We initiated the
creation of the company and have since supported its development
into a leading global player. The management has done a fantastic
job in growing the business, developing its product offering and
turning the company into one of the leaders within its markets with
strong profitability. Apax will offer Mölnlycke Health Care support
for further industrial development combined with financial
strength," says Ulf Rosberg, Partner at Nordic Capital.
"It has been exciting and a privilege to have been able to
create Mölnlycke Health Care under Nordic Capital's ownership. The
health care market is expanding and offers continued opportunities
for further growth," says Finn Johnsson, President and CEO of the
company. "I am now pleased to see that the right purchaser could be
found for Mölnlycke Health Care. After successfully establishing
the company globally, the new owner will now further support our
global growth. They also have substantial experience from the
healthcare sector and from international acquisitions, which I
think is vital."
"This purchase is appealing both from an industrial and a
financial perspective for Mölnlycke Health Care. Apax Partners has
a dedicated international team focused on investing in and working
with healthcare companies. In particular, we have significant
experience in growing companies internationally in the single use
surgical and wound care markets. We are confident of a bright
future for Mölnlycke Health Care within the Apax Partners'
portfolio of complementary companies. We are delighted to have the
opportunity to support its future development," says Ian Jones,
Partner, Apax Partners Worldwide LLP.
Closing of the transaction is subject to the approval of
European and US competition authorities.
Apax Partners was advised by Deutsche Bank and Merrill Lynch.
Debt financing to support the transaction is being provided by
Barclays Capital and Deutsche Bank.
For more information, please contact:
Ulf Rosberg
Partner
Nordic Capital
T: +46 8 440 50 50
Finn Johnsson
President and CEO
Mölnlycke Health Care
T: +46 31 722 30 00
Ben Harding
Head of Communications
Apax Partners
T: +44 20 7872 6300
Nordic Capital is a leading private equity firm focusing on
investments primarily in the Nordic middle-market arena. The firm
has a strong investment track record, an extensive network of
contacts and firsthand knowledge of local industries and business
practices. Since its inception in 1989, Nordic Capital has invested
in more than 60 Nordic based companies operating in a range of
segments and sectors. Nordic Capital's proven investment strategy
creates value by actively implementing key value drivers such as
new industrial combinations, strategic repositioning and
internationalization. A range of leading Nordic and international
institutions are investors in Nordic Capital funds.
www.nordiccapital.com
Mölnlycke Health Care is one of the world's leading providers of
single-use surgical and wound care solutions to the professional
health care sector. The surgical assortment is marketed under three
brand names, BARRIER®, Klinidrape® and ProcedurePakTM and the wound
care assortment under the brand name Tendra®. Total annual sales
are at present €477 million and the group has about 4,000
employees. Manufacturing takes place in five factories located in
Finland, Belgium, the Czech Republic, Thailand and Mexico. Sales
and marketing is carried out in four market areas; Europe/Middle
East/Africa, North America, Latin America and Asia Pacific,
altogether comprising 25 subsidiaries and a number of international
representation offices.
www.molnlycke.com
Apax Partners is one of the world's leading private equity
investment groups, operating across the United States, Europe and
Israel. Apax Partners has raised or advised approximately $20
billion around the world. With more than 30 years of direct
investing experience, Apax Partners' Funds provide long-term equity
financing to build and strengthen world-class companies. It pursues
a multi-stage equity investment strategy, investing in late
venture, growth capital and buyouts. Apax Partners' Funds invest in
companies across its 6 chosen global sectors of telecommunications,
IT, retail and consumer, media, healthcare and financial/business
services.
www.apax.com