Secondary Buyout • Forest Products

MB Funds, Tesi and Nordic Mezzanine Acquire Kotkamills Oy

On March 5, 2015, private equity firm MB Funds, sovereign wealth fund Tesi and mezzanine finance firm Nordic Mezzanine acquired forest products company Kotkamills Oy from OpenGate Capital

Acquisition Context
  • This is MB Funds’ 2nd, Tesi’s 1st and Nordic Mezzanine’s 1st transaction in the Forest Products sector.
  • This is MB Funds’ 16th, Tesi’s 52nd and Nordic Mezzanine’s 5th transaction in Finland.
Investment Fate
  • Kotkamills Oy was sold to a strategic buyer in 2020 for 425M EUR.

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M&A Deal Summary

Date March 5, 2015
Target Kotkamills Oy
Sector Forest Products
Buyer(s) MB Funds
Tesi
Nordic Mezzanine
Sellers(s) OpenGate Capital
Deal Type Secondary Buyout

Target Company

Kotkamills Oy

Kotka, Finland
Kotkamills Oy is a manufacturer of quality specialty papers and wood-based products for the laminate, plywood, construction and magazine industries around the world. Kotkamills Oy was established in 1872 and is based in Kotka, Finland.
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Buyers Overview 3

Buyer

MB Funds

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1988
PE ASSETS 500M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

MB Funds is a Finnish private equity firm focused on buy-outs, privatizations, buy and builds, and expansion capital transactions. The Firm targets mid-market companies throughout Scandinavia with €20 to €200 million in revenue. MB Funds was established in 1988 and is headquartered in Helsinki.


Deal Context for Buyer #
Overall 18 of 35
Sector: Forest Products 2 of 2
Type: Secondary Buyout 2 of 4
Country: Finland 16 of 32
Year: 2015 3 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-02-20 Cityterveys Oy

Helsinki, Finland

Cityterveys Oy is a provider of healthcare diagnostic services and magnetic resonance imaging and laboratory tests. Cityterveys is based in Helsinki, Finland.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-05-07 Pinja

Jyvaskyla, Finland

Pinja is an engineering company specializing in industrial automation, software and digitalization services. Pinja was founded in 1990 and is based in Jyvaskyla, Finland.

Buy -
Buyer

Tesi

Investor Investor Investor Investor Investor


Category Sovereign Wealth Fund
Founded 1995
PE ASSETS 2.4B EUR
Size Large
Type Sector Agnostic
DESCRIPTION

Tesi is a Finnish venture capital and private equity firm specializing in fund and direct investments. Tesi specifically targets minority investments in early, growth stage, and established businesses. Areas of interest include industrial, mining, software, business and consumer services, healthcare, life science, cleantech, and marine. Tesi was established in 1995 and it is based in Helsinki.


Deal Context for Buyer #
Overall 58 of 75
Sector: Forest Products 1 of 1
Type: Secondary Buyout 3 of 4
Country: Finland 52 of 67
Year: 2015 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2015-01-07 Mitron Group Oy

Forssa, Finland

Mitron Group Oy Ltd. is a provider of display solutions for city traffic, railway transportation and at metro stations. The company provides IP based on-board systems for trains, trams and metros.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-12-04 Unisport

Vantaa, Finland

Unisport is a provider in the installation of a wide range of surfaces and equipment. It manufactures and markets athletic flooring and astroturf. Unisport was founded in 1998 and is based in Vantaa, Finland.

Buy -
Buyer
DESCRIPTION

Nordic Mezzanine is an independent provider of mezzanine financing for buyouts, growth capital needs, and capital restructurings. Nordic will consider opportunities in a broad range of industry sectors and generally looks to invest in Scandinavia, Germany, Austria, Switzerland, the Netherlands and Belgium. The Firm's target investment size is €10 to €40 million. Nordic Mezzanine was formed in 1999 and is based in Helsinki with an additional office in London.


Deal Context for Buyer #
Overall 28 of 28
Sector: Forest Products 1 of 1
Type: Secondary Buyout 13 of 13
Country: Finland 5 of 5
Year: 2015 1 of 1
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-10-21 Riri

Mendrisio, Switzerland

Riri is a manufacturer of zippers and buttons for the luxury and accessories industry. It offers zippers, jeans buttons, press snaps and buttons, rivets, clips, technical products, tape colors, and puller design solutions, as well as systems for the opening and closure of garments. Riri was established in 1936 and is based in Mendrisio, Switzerland.

Buy -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-04-01 Kwintet AB

Malmo, Sweden

Kwintet AB is a supplier of professional wear. The group supplies high-quality professional wear for a variety of uses and industries, and owns a range of strong brands including Kansas, Fristads, Wenaas, A-Code, Lafont, KLM and Hejco.

Sell -

Seller Profile 1

SELLER

OpenGate Capital

New York, New York, United States

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 2005
PE ASSETS 890M USD
Size Middle-Market
Type Sector Agnostic
DESCRIPTION

OpenGate Capital is a private investment firm focused on acquiring divestitures of larger public corporations or troubled companies needing restructuring. OpenGate does not focus any particular industry and will consider opportunities throughout North America and Europe. The Firm's target companies with up to $1 billion of revenue and valued up to $300 million. OpenGate Capital was formed in 2005 and is based in Los Angeles, California.


Deal Context for Seller #
Overall 11 of 36
Sector: Forest Products 2 of 3
Type: Secondary Buyout 3 of 9
Country: Finland 1 of 1
Year: 2015 1 of 3
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2014-12-30 Fusion Paperboard US

Hebron, Kentucky, United States

Fusion Paperboard manufactures, converts and markets boxboard, a thin, rigid board of 100% recycled fibers used to make cartons or boxes for cereal, frozen food, and other consumer products. With a paper mill in Versailles, CT, and a converting facility located in Hebron, KY, Fusion Paperboard innovates and develops paperboards that enable customers to revolutionize their packaging offerings.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2015-04-02 Hamilton Scientific

De Pere, United States

Hamilton Scientific designs, manufactures, and installs laboratory furniture, fume hoods and epoxy resin tops. Its products are marketed and sold under three established brand names; Hamilton, Advanced Laboratory Concepts (ALC) and Collegedale. The business has a highly diversified, North American customer base in the academic, government, research, pharmaceutical and biotechnology markets. In addition to facilities in Wisconsin, Texas, Arkansas, and Mexico, Hamilton Scientific has established domestic and international dealer networks, and dedicated sales personnel in China, India and the Middle East.

Sell -