Secto Automotive Oy sold to Sentica Partners
Secto provides automotive leasing services to more than 1,000 corporate clients and has a fleet of over 2,500 cars. The company’s service concept includes personal service approach, transparency and flexibility. Secto collaborates very closely with its financial partners, Santander and Pohjola Bank, car dealers and providers of supporting products and services in order to provide its customers with extensive leasing services. The company’s revenues grew some 25 per cent up to €63 million in 2013 and it had a EBIT of 3.4 M€.
Our main value creation components were:
- Initiation of the process
- The goal was to reach the optimal company valuation and company structure by widening the ownership base, while at the same time reducing the ownership and transferring majority of the ownership to the new owner.
- We prepared the company valuation, the structure of the deal, the Information Memorandum and revised the business plan together with the company management
- Assisting in deal structuring and negotiations around SHA commercial terms regarding the seller’s commitment (bad leaver / good leaver, work obligation etc.)
After the transaction was completed, the Newco ownership was divided in the following way: Sentica Equity Fund III 65%, founders and key employees 35%.
Sentica Partners had 300 M€ assets under management. Sentica is an independent private equity company focusing on investing in and developing small and mid-sized companies with a Finnish origin. Sentica makes controlling stake investments in Finnish companies operating in various industries with sales typically in a range of EUR 10-100 million.