Silverfleet swoops for Cimbria deal

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Private equity (Swiss: PEHN.SW - news) firm Silverfleet Capital is on the verge of buying manufacturing company Cimbria for €137m (£111m).

Silverfleet, formerly known as PPM Capital, is set to complete the acquisition of Cimbria from Axcel, a Nordic private equity fund, over the weekend. A deal could be announced as early as tomorrow, according to people familiar with the matter.

However, Silverfleet’s takeover of Cimbria still needs clearance from the competition authorities, which is expected to occur within the next few months.

Cimbria, whose head office is in Denmark, manufactures equipment for seed and grain processing. Its products, some of which are sold in the UK, include equipment for cleaning, drying and storing grain and seed.

Silverfleet formerly the private equity arm of Prudential (LSE: PRU.L - news) is looking to purchase a majority stake, while members of Cimbria’s management team, led by chief executive Karsten Larsen, are likely to reinvest their shareholdings for a minority stake.

Gareth Whiley, the partner at Silverfleet who led the transaction, is poised to join the board of Cimbria as a non-executive director after the takeover. Debt for the deal is being provided by Nordea Bank (Other OTC: NRBAY - news) .

The Cimbria transaction is a welcome boost for the European private equity industry, which has seen deal volumes slide over the past few years.

The takeover of Cimbria is also Silverfleet’s sixth from its current €670m fund. Last month Silverfleet, whose past British investments include Gala and Office, completed the acquisition of La Fée Maraboutée, a French wholesaler and retailer of women’s fashion, for €65m.