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04 April 2013

Silverfleet Capital completes A/S Cimbria acquisition

Silverfleet Capital, the European private equity firm, has completed the acquisition of A/S Cimbria, a leading manufacturer of equipment and processing lines for the handling and processing of seed and grain, for DKK 1,025 million (€137 million). The transaction was signed on 3 January 2013 and completion occurred on 4 April 2013 following thereceipt of competition clearance.

Cimbria, headquartered in Thisted in Denmark, is a leading global manufacturer of equipment used for either seed processing or post-harvest grain handling. The company’s products include equipment for cleaning, drying and storing grain and seed, as well as conveyors linking equipment in a handling or processing line. Products range from standalone equipment pieces to large custom built project installations. Cimbria operates two production facilities in Denmark, and one in each of Austria, the Czech Republic and Italy, and today has approximately 740 employees. Total sales in 2012 were DKK 1,050 million (€140 million), and the company generated an EBITDA of DKK 145 million (€19 million).

Cimbria is widely recognised for its high-quality products serving the seed- and grain-equipment markets. In particular it has an excellent reputation in the fast-growing markets of Eastern Europe, Ukraine and, increasingly, Russia. Expanding demand for grain and other crops, primarily due to population growth, is driving a need for greater agricultural productivity, which Cimbria’s products are well-placed to serve.

Silverfleet Capital’s fund acquired a majority investment in Cimbria from Axcel, a Nordic mid market private equity fund, and members of Cimbria’s management team who have reinvested a significant amount of money for a minority stake. Debt was provided by Nordea.

Silverfleet Capital has a successful track record of investing in international businesses within the Nordic region, and the firm’s previous investments in that region include Phadia, an allergy diagnostics company based in Uppsala, Sweden and Finnish Chemicals, a bleaching chemicals business headquartered in Äetsä, Finland.

This acquisition is Silverfleet Capital’s sixth from its current €670 million fund and follows Silverfleet’s recent acquisition of La Fée Maraboutée, a French wholesaler and retailer of women’s fashion, for €65 million in December 2012.

Silverfleet Capital was advised by Handelsbanken Capital Markets, Deloitte Transaction Services, PwC (Commercial), Travers Smith and Accura.