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Nordic Capital and ATP make recommended offer to de-list Danish Flack

Nordic Capital and ATP Private Equity have joined forces to make a recommended bid for Danish rescue services business Falck for more than E700m. The deal represents ATP's fourth major coinvestment since it was set up in its present form in 2001.

Falck told the Copenhagen Stock Exchange that the consortium's bid was more attractive than other offers it had received and the firm's largest shareholder has also backed the bid.

Nordic plans to de-list the company and work with the existing management to grow the business along the lines of present strategy.

Nordic holds 88 per cent of the bid vehicle Cidron and ATP holds the remaining 12 per cent.

This sort of co-investment has become increasingly popular among large institutional investors in private equity in recent years because it is a much more cost-efficient way of investing in the asset class. The co-investment is net of management fees and carried interest that goes the way of the general partner, meaning the returns on successful deals are much larger.

ATP has invested in Nordic Capital's last two funds.

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