Sale of Finelcomp Oy to Juuri Partners and Esa Kivi
Sievi Capital, together with Finelcomp’s minority shareholders, wholly sold the Company to a fund managed by Juuri Partners and the Company’s CEO Esa Kivi. Finelcomp develops and manufactures enclosures and fastening solutions for electrical and telecommunication systems. The company also produces high-quality metal components for the machinery industry. Finelcomp is the Finnish market leader in its field with a 50% market share and the company is growing in the Nordic countries.
During Sievi Capital’s ownership of 3.5 years, Finelcomp’s revenue grew, manufacturing was streamlined and profitability developed positively. Moreover, a generational change was made within the Company and the business became more international. In 2017, Finelcomp’s revenue was 16 M€ and EBITDA 2.9 M€. The Company employed around 80 persons.
Our main value creation components were:
- Initiation of the M&A sales process and preparation of all materials including Information Memorandum and Teaser
- Nordic-level screening of suitable strategic buyers and private equity investors
- Managing of full-scope Due Diligence process
The Enterprise Value of the Company was c. 13.4 M€ and the transaction included a standard closing mechanism with which the purchase price was adjusted.
Juuri Partners is a Finnish private equity company, which offers financing to established and profitable small and medium-sized enterprises in Finland in order to support their growth and development. Juuri Partners also supports entrepreneurs/owners in developing and growing their companies both as a provider of financing and an external sparring partner that is strongly committed to the company. Juuri Partners acquires either majority or minority stakes in companies. The investment period of Juuri Partners is typically 3-4 years.