Industri Kapital acquires Kwintet from Axcel
The Industri Kapital 2000 Fund will acquire Kwintet a/s from a group of investors led by Axcel.
Kwintet is the leading European supplier of professional wear with turnover and EBITDA expected to reach approx. EUR 390 m (DKK 2.9 bn) and EUR 47 m (DKK 350 m) in 2005. The Kwintet group supplies high-quality professional wear for a variety of uses and industries, and owns a range of strong brands including Kansas, Fristads, Wenaas, A-Code, Lafont, KLM and Hejco. The company, headquartered in Odense, Denmark, has 2,900 employees and sales offices in 11 countries.
“Kwintet is the clear market leader in top-to-toe work wear with a range of strong brands and a reputation for quality amongst its customers throughout Europe. Our intention is to continue to build on the company’s strong market position and to improve the business further by enhancing the product offering and strengthening the procurement and logistics setup” said Trygve Grindheim, Partner at Industri Kapital. “The market for professional wear is still very fragmented, and Kwintet’s unique strategic position makes it a natural consolidator in the industry. Industri Kapital strongly believes that Kwintet can significantly increase its revenues over the years to come through a combination of organic growth and targeted acquisitions.”
Axcel and co-investors, including LD and Wenaas Holding, invested in Kwintet in 1999.
“We invested in a company which was the market leader in Scandinavia but was facing challenges in some areas. Under our ownership, Kwintet’s market position has been considerably strengthened through a number of acquisitions in Northern Europe and the group turnover has increased from EUR 255 m (DKK 1.9 bn) in 1999 to approx. EUR 390 m (DKK 2.9 bn) in 2005. Moreover, we have streamlined the company’s sourcing through significantly increasing the level of outsourced production in Eastern Europe and Asia”, said Christian Frigast, chairman of Kwintet and CEO of Axcel. “In recent years, the company has focused on consolidation of existing activities and is well positioned for further growth. On behalf of the shareholders we would like to express our thanks to the group’s management and employees for their great efforts. At the same time, we are confident that the positive development will continue under the new ownership”.
“Our co-operation with Axcel and partners has been very constructive, and we are pleased with the development of our company. Kwintet is by far the leading supplier of professional wear in Europe with the strongest brands and coverage across product offering, customer base and geographical presence,” said Flemming Enevoldsen, CEO of Kwintet. “We now look forward to working together with Industri Kapital as we further develop the company through continued acquisitions and an increased focus on procurement and logistics in the years to come”.
Industri Kapital was advised by Nordea Corporate Finance and Rønne & Lundgren. Debt for the transaction will be provided by Nordea and FIH.
The transaction is only subject to approval by the competition authorities.
Christian Frigast, CEO
Tel. +45 33 36 69 99 or +45 26 32 64 00
Trygve Grindheim, Partner
Tel. +44 20 7304 4300 or +44 7768 276 304
Anne Holm Rannaleet, Partner & Information Director
Tel: +46 8678 9550
Flemming Enevoldsen, CEO
Tel. +45 66 61 22 00 or +45 40 43 13 03