Panostaja sells KotiSun Group to fund managed by CapMan

Panostaja Oyj          Stock Exchange Bulletin, Inside Information     December 19, 2017      13:15             

Panostaja has, together with the other owners of KotiSun Group, signed an agreement to sell the entire share capital of KotiSun Group Oy to the CapMan Buyout X fund managed by Capman. The deal will make Capman a majority shareholder in KotiSun Group, alongside Suomen Teollisuussijoitus Oy and Varma Mutual Pension Insurance Company. KotiSun Group’s management will continue as a minority shareholder in the company with their share of 30%. The conclusion of the transaction requires the approval of the competition authorities.

Panostaja’s shareholding in KotiSun Group Oy is 56.6%, which will be transferred fully to the buyer by virtue of the trade. The total debt-free sale price of the shares sold is estimated to be MEUR 88, of which Panostaja’s share after the deduction of interest-bearing net liabilities and costs related to the sale will be about MEUR 40.7. As part of the deal, Panostaja will finance the buyer with credit in the amount of MEUR 1.5. In order to be completed, the deal still requires the approval of the competition authorities, and the parties involved in the transaction are expecting the deal to be finalized by January 31, 2018. Once the deal has been completed, Panostaja Group will record about MEUR 33 in sales profit before taxes.

“We are very pleased with our investment KotiSun. In 2014, we sat down with the company’s management to draw up an ambitious plan, which we then proceeded to implement through determined efforts. Now, we have reached our mutual goal and it is time to divest our holding. I would like to thank the entire staff of KotiSun for their amazing work and our very educational journey together,” says Panostaja’s CEO Juha Sarsama.

KotiSun Group has been owned by Panostaja since 2014. During Panostaja’s ownership, the company’s operations were expanded heavily to cover new services and new geographical areas. The latest expansion was the business operations initiated in Sweden in 2017. While being owned by Panostaja, the company has tripled its net sales and EBIT and exhibited excellent development in shareholder value.

“We are very pleased with KotiSun’s development in recent years. We have achieved strong growth with Panostaja and succeeded in realizing our growth strategy. Panostaja has been a good owner for us, and together we have expanded KotiSun into a national leader in the field. Capman brings a strong international development team to KotiSun, which can support us better than before on our journey to international markets,” KotiSun Group’s CEO Kalle Lahtinen describes.

“KotiSun Group is a strong company, which has been a pioneer in its field. The company is known for its customer-oriented approach and principles of continuous development. We are very excited about this investment, which provides us with the opportunity to expedite the efforts of the leading operator in the field to grow domestically and expand the effective concept internationally. KotiSun’s growth-oriented and committed management has done a wonderful job in developing the company, so we can’t wait to get started with our cooperation,” CapMan Buyout’s Investment Director Antti Karppinen says.

KotiSun Group forms Panostaja’s KotiSun business segments. Once the deal has been completed, KotiSun Group will be fully removed from Panostaja Group’s profit/loss from continuing operations for the review period and reference period. Without KotiSun Group, Panostaja Group’s comparable net sales and EBIT from continuing business operations for the 2017 financial period stood at MEUR 150.7 and MEUR 2.9, respectively.

KotiSun Group’s net sales and EBIT for the financial periods November 1, 2016–October 31, 2017 and November 1, 2015–October 31, 2016 were formed as follows (IFRS):

KotiSun Group’s balances on October 31, 2017 and October 31, 2016 were as follows:

Panostaja Oyj

Juha Sarsama

CEO

More information:

Juha Sarsama, CEO, Panostaja Oyj, +358 (0)40 774 2099, juha.sarsama@panostaja.fi

Kalle Lahtinen, CEO, KotiSun Group Oy, +358 (0)40 417 7962, kalle.lahtinen@kotisun.fi
 

Panostaja is an investment company developing Finnish SMEs in the role of an active majority shareholder. The company aims to be the most sought-after partner for business owners selling their companies as well as for the best managers and investors. Together with its partners, Panostaja increases the Group's shareholder value and creates Finnish success stories. After the divestment of KotiSun, Panostaja will have a majority holding in seven investment targets. Panostaja’s shares (PNA1V) are quoted on the Nasdaq Helsinki Stock Exchange. www.panostaja.fi

KotiSun offers conceptualized service water and heating network renovations and sewer overhauls to consumers as a turnkey service. KotiSun also offers electrical renovations and heating energy optimization solutions under the Kotivo brand. KotiSun has grown rapidly into the largest and best-known company in the sector in Finland. The Group’s Managing Director is Kalle Lahtinen. In 2017, KotiSun’s net sales were MEUR 42.5, and the company employed 422 people. www.kotisun.fi

CapMan is the leading Nordic investment and specialized asset management company. We have actively developed hundreds of companies and properties and generated substantial value over our 28 years as one of the pioneers of capital investment in the Nordic countries. We employ more than 110 investment professionals and manage a total capital of approximately EUR 2.7 billion mostly for our customers, i.e., investors, but also as direct investments from our own balance in areas where we do not have an active fund. Our goal is to provide attractive profits and innovative solutions to investors and value-adding services to professional investment partnerships, growth-oriented companies and lessors of properties. Our investment strategies cover buyouts, growth equity, real estate, Russian investments, credit and infrastructure. Our service business covers, among others things, services for acquiring funds, procurement and purchasing activities and fund administration. www.capman.fi