Cimbria sold to Axcel
June 8, 2011
by World Grain Staff
THISTED, DENMARK — EQT Opportunity announced June 6 that it has agreed to sell Cimbria, one of the leading manufacturers of equipment for handling and processing of grain and seed products, to Axcel, a private equity firm.
“We are very happy with the way Cimbria has developed and in particular shown its strong resilience by growing through the financial crisis”, says Odd Christopher Hansen, chairman of the board of Cimbria and industrial advisor to EQT. “The company is now well-positioned for future growth due to the strong position in the emerging markets including Eastern Europe.”
EQT acquired a majority stake in Cimbria in 2007 from the founding family and the company has since then increased sales by more than 30% while earnings before interest, taxes, depreciation and amortization (EBITDA) doubled. CEO Karsten Larsen has worked to integrate, restructure and streamline the company and established a centralized organization with a clear growth and production optimization strategy.
“EQT has been a supportive shareholder, and together with its industrial advisors, provided valuable expertise for Cimbria. With EQT as a shareholder Cimbria has developed into a more professional and focused company with a solid strategy for profitable growth,” says Karsten Larsen, CEO of Cimbria.
Advisors to the sellers were, in addition to EQT Partners, Handelsbanken Capital Markets, Kromann Reumert, Deloitte and KPMG.
Closing of the transaction is subject to approvals from competition authorities and is expected in August 2011.