Since the acquisition in 2007, many value-creating strategic initiatives have been implemented, including two significant add-on acquisitions in North America, investments in production plants in Poland and Canada as well as international expansion in China, South Africa and Brazil. MCC has enjoyed annual growth in sales of approximately 8% since the acquisition in 2007, and sales amounted to approx. SEK 1,264m in 2015, with an adjusted EBITA of about SEK 152m.
“Together with the company’s management, we have strengthened MCC’s market position through add-on acquisitions, investments in product development and increased productivity. Having a strong focus on value-creation during the entire holding period, despite at times challenging market conditions, means that we are now divesting a company that is nearly twice its size – in terms of sales – with a good return,” says Daniel Repfennig, Senior Investment Manager at Ratos.
MCC was sold to VBG Group AB (publ.), a listed industrial corporation. The enterprise value amounted to approximately SEK 1.8 billion, and Ratos received approximately SEK 1.4 billion (equity value) for 100% of the shares. The divestment generated an exit gain of approximately SEK 268m and an average annual return on invested capital (IRR) of approximately 10% as well as a money multiple of 2.2x.
Facts about the investment
Investment year: 2007
Exit year: 2016