Deals

Capman consortium buys biofuel energy company

A consortium of three companies has bought biofuel combustion plant supplier KMW Energi, as buyout firms look to invest in the growing biofuel sector.

-

Nordic buyout firm CapMan, Swedish-based SEB Venture Capital and global energy and environmental specialist Aloe Private Equity have bought Swedish KMW Energi for an undisclosed sum.

KMW Energi supplies bio-fuel combustion plants and its turnover in 2006 was €21.6 million ($28.9 million).

CapMan senior partner Lars Hagdahl said KMW Energi’s plants are designed with technological competence; they are also safe, efficient and environmentally friendly. 

The consortium is buying an 80 percent stake, while the undisclosed owners will retain 20 percent. The transaction will be finalised in early July.

Biofuel companies have attracted private equity investors keen to capitalise on the growing industry’s reputation as one of the most prominent alternatives to oil to meet society’s energy needs in an environmentally friendly manner.

A consortium led by Dubai-based Abraaj Capital bought the Egyptian Fertilizers Company for $1.41 billion (€1.1 billion) earlier this month on the reasoning the company’s fertiliser would be crucial to the growing biofuel industry.

Separately, Capman portfolio medical technology company Aerocrine completed its IPO on the Stockholm stock exchange. Capman retained its 6 percent stake in the company which it co-owned with HealthCap, H&B, Investor and Scandinavian Life Science Venture. The shares are subject to a 12 month lock-up period.

CapMan invested in Aerocrine in 2005. It raised SEK 225 million (€24 million, $32 million) in a pre-IPO placement retail customers of the Icelandic Kaupthing bank and several institutional investors including allergy company Phadia. The shares were listed today at SEK 25 per share, corresponding to a market capitalisation of around SEK1150 million.