Industri Kapital sells Elektrokoppar after nearly 10 years

Buyout firm Industri Kapital has exited from Elektrokoppar after nearly 10 years invested in the company and several difficult economic cycles in the copper industry.

Nordic buyout firm Industri Kapital has sold wire manufacturer Elektrokoppar to Swedish firm Liljedahlsbolagen for an undisclosed sum.

Copper wire: one of Elektrokoppar’s products.

The company was acquired by Industri Kapital from engineering company ABB in November 1997.

Elektrokoppar manufactures copper wire rod and winding wire. In 2006 Elektrokoppar had a turnover of SEK 8 billion ($1.2 billion, €871 million). It refines around 200,000 tons of copper and aluminium per year. The company mainly provides wire to manufacturers.

Anne Holm Rannaleet, partner, Industri Kapital, said the company did not have a natural industrial buyer and athough it has always been one of the best performers in its class, there have been several difficult economic cycles since the company was bought. “Last year the price of copper went up by 300 percent affecting the working capital used by the company. But the manufacturing sector has been booming so we ended up covering our money and made a small return,” she added. 

In 2005, Elektrokoppar entered the Eastern European markets through the acquisition of EKS Slaska in Poland where productivity has increased.  The company said strong demand from the eastern European markets has increased the firm’s turnover and profitability substantially. Elektrokoppar has also recently expanded into China.

Industri Kapital manages close to €4 billion ($5.4 billion) in fund commitments. Its portfolio has 24 companies with a turnover of nearly €8.6 billion.