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CapMan buys industrial unit, sells retailer

The Nordic alternative assets investor has followed up an exit earlier this week with an acquisition today.

CapMan, the Helsinki-listed private equity and real estate business, has agreed to acquire the industrial services unit of Fortum, the Finnish energy company. The price of the deal, which is scheduled to complete by the end of October, has not been disclosed.

The industrial services unit, which is being renamed Maintpartner, is a leading Nordic provider of maintenance and operation services, which delivered turnover of around €80 million ($102 million) in 2005.

Jouko Latvakangas, head of the industrial services unit, becomes managing director of Maintpartner, while Esko Makelainen, a former chief financial officer of Finnish forest products company Stora Enso, is being drafted in as chairman.

The investment has been made from the CapMan Buyout VIII fund, in which CapMan plc is a major investor. The fund held a final close on €440 million in June this year.

On Tuesday this week, CapMan agreed to sell its 83 percent stake in Finnish retailer Tiimari to Helsinki-listed Leo Longlife in a deal that gave Tiimari an enterprise value of €83 million.     

Tiimari owns a chain of stores in Finland focused on products including home-ware, craft, cards and office stationery supplies. Leo Longlife’s operations include business and corporate promotional gifts as well as investment and property development.

The sale, which is expected to close on October 9, delivered €3 million in carried interest income to CapMan plc, according to a statement from the firm. In the same statement, it described the investment only as “satisfactory”.

CapMan funds Finnventure III and IV, Finnmezzanine I and the Fenno Fund (which is co-managed by CapMan and Finnish private equity firm Fenno Management) invested in Tiimari in 1998.