Thule has traded hands to yet another private equity firm the third owner in five years. Nordic Capital Fund VI signed an agreement late last week to acquire the Thule Group from Candover. While both parties reportedly agreed to keep terms of the deal a secret, Candover issued a statement claiming that they realized a 2.5X return on their investments in Thule. Candover led the 465 million ($600 mm) management buyout of Thule in December 2004. Since then, Thule has grown organically as well as through a series of seven complementary acquisitions, including Brink, SportRack, Valley and, most recently, Case Logic, in the U.S.
With a 465 million 2004 price tag and a 2.5X investment return, this places the acquisition price in the 1.5 billion ($1.95 bn) range. With pro forma revenues of SEK6.6 billion ($937 mm), this would put the multiple at over 2X sales quite a premium to pay for a hardgoods manufacturer. However this is not as high of a multiple as Candover paid in 2004 and they managed to realize a solid return.
John Arney, managing director of Candover, said, “Thule has performed extremely well during Candover's partnership with the management team, led by Anders Pettersson. We have more than doubled the size of the business and sales and profits have grown strongly. Thule's success has been built on a strategy of adding new categories to its portfolio of products designed for active consumers wanting to transport equipment safely, easily and in style. The company is now in excellent shape to continue its strong growth profile and meet its ambition of being a 1 billion turnover company by 2009.”
“As was the case when Candover purchased us, there will be little if any effect on our US operations,” said Fred Clark, president of Thule Inc. “Nordic Capital was one of the other interested parties when Candover purchased Thule in 2004, and so we are very familiar and comfortable with them. We have been very successful with our strategy to grow the company, organically and through acquisitions, and we are going to continue along that path.”
Thules management will reinvest in the new company and continue to be a significant owner. The completion of the acquisition is subject to approval by the relevant authorities.
Anders Pettersson, president & CEO, Thule said, “We welcome Nordic Capital as the new owner of Thule. Nordic Capital has followed us very closely during the past four years and mutual trust has been established. Strategically, we will continue with our buy and build strategy with the aim of creating a one billion Euro company by 2009.”
