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CapMan to sell majority stake in Moventas to Industri Kapital29/01/2007. Source: AltAssets. 
 CapMan has agreed to sell the majority of its shareholding in Moventas to Industri Kapital. Industri Kapital 2004 fund will make the transaction on behalf of a new company, and following the transaction it will own 58 per cent of Moventas, Varma will own four per cent, the management 22 per cent and CapMan funds 16 per cent.
In connection with the transaction, CapMan Equity VII fund will partially exit from Moventas, and CapMan Mezzanine IV and Finnmezzanine III funds will exit from Moventas in total. The realisation has an approximately fourfold return on investment to investors, according to a statement.
Moventas is a manufacturer of industrial and wind turbine gears and a provider of gear maintenance and service. CapMan funds invested in Moventas in April 2005, when they acquired the then Metso Drives from Metso Corporation. The funds' ownership in Moventas was 77 per cent prior to the transaction, Varma's ownership was about 17 per cent and the management's share was approximately six per cent.
Orvo Siimestö, senior advisor at CapMan, said, 'The strong technical knowledge and good customer relationships built during Metso's ownership have created solid ground for Moventas' rapid growth and improved profitability. During CapMan's ownership the increase in sales has been very fast especially in wind turbine gears. The company has made significant investments, and the current capital expenditure programme aims at doubling the volumes. The announced transaction is a natural step in the development of Moventas.'
Michael Rosenlew, partner at Industri Kapital, added, 'We are delighted to be acquiring Moventas, which benefits from a leading position as an independent major wind gear manufacturer with a strong position in selected industrial market segments. We are looking forward to working with the management team and CapMan, to bring the company to its next stage of development. We will continue organic expansion by leveraging Moventas' unique position, focusing on supporting the company in enhancing operational excellence and in particular on improving customer services. We will also pursue acquisition-led growth.'
CapMan manages Nordic buy-out, mezzanine, technology, life science and real estate funds with approximately €2.6bn in total capital.
Industri Kapital manages close to €4bn in fund commitments.
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