Palamon agrees sale of Eneas for a 3.3x return
Palamon Capital Partners (“Palamon” or the “Firm”), a pan-European growth investor, has agreed the sale of Eneas Group (“Eneas” or the “Company”) to Norvestor Equity (“Norvestor”) for an undisclosed amount. The sale will bring total proceeds to NOK 750 million (approximately €80 million), representing a 3.3x return on invested capital. The transaction is expected to close in August 2016, subject to regulatory approvals. Full terms of the sale were not disclosed, however, following the transaction the Company will continue to be led by CEO and Founder, Thomas Hakavik.
Eneas is the leading independent supplier of corporate energy services to small and medium sized enterprises (“SMEs”) in the Nordic region and serves more than 25,000 customers with energy brokerage, energy audit and smart metering services.
Palamon acquired a substantial majority stake in Eneas having recognised the growth potential of its highly-scalable energy brokerage business, which intermediates between SMEs and the deeply fragmented Nordic supplier base of almost 300 energy providers. Under Palamon’s ownership, Eneas has grown into the largest independent energy broker for SMEs and the clear market leader in Norway and Sweden, representing 1.7 TWh of annual energy consumption. The Company has been able to successfully leverage its scale and sophistication in navigating the Nordic electricity market to offer competitive, convenience-focused products tailored to the needs of its SME customer base.
Jean Bonnavion, Partner at Palamon Capital Partners commented, “I am delighted with the level of success at Eneas, particularly over the past three years during which time we have grown EBITDA at 40% CAGR. Our investment in Eneas originated from our pan-European thematic strategy, which identifies high-growth businesses supported by resilient sectoral shifts. In line with our investment thesis, Thomas and his team have been able to scale the brokerage business to a position of real strength in a highly-fragmented and competitive supplier market, producing a 3.3x return for our investors.”
Thomas Hakavik, Founder and CEO of Eneas said, “Palamon has been a very strong partner for Eneas over the last three years. The Firm’s strategic guidance has proved critical in helping us to focus the company on the core business activities and drive growth. I am proud that Eneas is now the leading independent player in the Nordic energy market, in a stronger financial position than ever and with significantly improved capabilities. We are excited for the next stage of the company’s growth.”
Palamon’s previous investments in the Nordic region include: Espresso House, which it realised in 2012 for a 3.4x return and Nordax, which it sold in 2010 for a 3.8x return.
The Firm’s investment strategy targets businesses that can capitalise on long term growth trends arising from socio economic and structural changes within sub-sectors of industry. In April, Palamon signed an agreement to sell Towry, the leading independent UK wealth manager for £600 million and a 13x investment return. Palamon’s recent investments include the acquisition of control positions in three Founder-owned businesses: Currencies Direct, one of the largest specialist international payments providers in the UK; Il Bisonte, an Italian leather accessories brand with an established sales presence in Japan; and The Rug Company, the leading global retailer of designer luxury rugs
