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Nordic EQT defies barren exit market with second disposal of the year

EQT Scandinavia, the mid-market buy-out firm, has made its second disposal of the year with the sale of Stenqvist, a retail packaging manufacturer, to European private equity firm Triton.

EQT made the original purchase four years ago with Skr140m, or E15m. It built on the initial investment with the acquisition of Rosenlaw, the Finnish market leader in 2000 and Unibag, the Danish market leader in 2002. Sales have grown from Skr873m in 1998 to an estimated Skr1.6bn last year.

‘During EQT's ownership Stenqvist has accelerated growth and improved profitability,' said Thomas von Koch, a partner at EQT. ‘Complementing Stenqvist's strong management team with an experienced and committed board of directors has contributed to making Stenqvist a very successful investment for EQT.'

EQT disposed of Stenqvist by auction. The firm is thought to have made a threefold return on its original investment but declined to reveal the exact value of the sale.

Triton bought the company with the help of debt from Nordea and finance from EQT's new mezzanine fund.

The sale of Stenqvist represents EQT's second exit of the year. The firm has already sold Nordic Info, a Danish credit and business information company, to UK's Experian for E150m.

Despite EQT's success, global exit markets remain barren with the IPOs window effectively shut and trade buyers very thin on the ground. Secondary buy-outs such as the sale of Stenqvist to Triton are becoming increasingly popular as other exit routes remain blocked.

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