Segulah recaps hydraulics company

The Nordic buyout firm’s Skr2 billion recapitalisation of Dacke, two years after the buyout firm acquired the company, is an exception in liquidity-starved credit markets.

Segulah has recapitalised Dacke, an hydraulics business, with Skr2 billion ($317 million; €213 million) of loans in a club deal put together by local bank Nordbank, the Nordic buyout firm said in a statement.

Segulah recap

Nordbank, Nordic financial services company Nordea, Danish bank FIH, Danish financial services company Nykredit and Nordic bank Straumur provided senior debt financing, while Nordbank and Straumur provided second-lien financing.

Dacke is an hydraulics company which provides to the off-shore, wind power and material handling industries.

Segulah acquired Dacke for an undisclosed sum in 2005. The hydraulics company employs 1,500 people across the Nordic region, the Baltics and China. It had sales of Skr3.4 billion with EBITA of more than Skr300 million in 2007.

Since the liquidity crisis in global credit markets began around August recapitalisations after only two years have become relatively rare. In the fourth quarter of 2007 leveraged buyout volume accounted for 86 percent of financial sponsor loans as opposed to 47 percent in the fourth quarter of 2006, when recapitalisations were far more common, according to data provider Dealogic.

Last week the Nordic buyout firm sold Danish oil and gas company Kosan Crisplant to United International Bank of Bahrain for an undisclosed sum.

Segulah closed its fourth fund in October on its hard cap of Skr5 billion five times oversubscribed seven weeks after embarking on fundraising.