Asset manager Intermediate Capital Group (ICG) has provided financing to a consortium buying fire protection business Minimax Viking Group, the terms of which were undisclosed, according to a statement on Thursday.
The investment was made from ICG Europe Fund V, which is the lender's mezzanine fund. It supports the purchase of a majority stake in the company from private equity firm IK Investment Partners to a holding company of a family office, KIRKBI Invest A/S, the Groos Family and management. ICG also led the arranging of the transaction.
Sources told Reuters that the sale values Minimax at €1.37 billion.
Minimax Viking Group was formed in 2009 when Minimax and Viking Group merged, backed by Minimax’s majority owner IK Investment Partners. Prior to the merger, the two fire protection and life safety system specialists operated solely in their respective German and US markets.
Since then, the firms have expanded further afield into Europe and Asia. Revenues have grown from approximately €960 million in 2009 to €1,170 million in 2013, and the fire safety and protection industry is growing strongly due to tighter legislation and insurance requirements, the statement said.
Jens Tonn, head of Germany for ICG, said: “Minimax Viking Group is an excellent investment opportunity, a strongly performing market leading business with huge future potential.”
Benoît Durteste, head of European mezzanine at ICG, added: “We are seeing strong investing momentum so far this year. The quality of investment opportunities continues to impress us. This is a transaction for ICG Europe Fund V and provides investors in the fund with further portfolio diversification, and Minimax Viking with the flexible capital it needs”.
ICG did not comment beyond the statement.