Skamol
Country: Denmark
Region: Nordjylland
Investors: Polaris Private Equity
Polaris Private Equity’s investment in Skamol, a specialist insulation products manufacturing business, shows how private equity firms are able to support portfolio companies in good times and bad. Polaris acquired Skamol at the height of the economic boom, and almost immediately started work on a new business plan.
Thanks to Polaris’ hands-on approach, Skamol thrived. The firm got deeply involved at an early stage, developing a restructuring plan and putting in place a new management team with the skills to cope during the crisis. In addition, over the next few years more than DKK150 million was spent on new manufacturing facilities and the acquisition of a business in Russia, plus improvements to manufacturing, sales and back office functions. Polaris sold Skamol in 2012.
Viggo Nedergaard Jensen
Senior Adviser - Polaris Private Equity
Together with a very capable management, we have developed Skamol to be a visible and esteemed international player in the industry.
25%
EBITDA margin, up from 8% at investment
4.5%
CAGR in revenues despite recession
What did the business need?
Support during downturn
International growth including emerging markets
Operational improvement
Management support
How did private equity backing create lasting value?
Developed a restructuring plan
Put in place a new, experienced management
Invested more than DKK150 million on new manufacturing facilities and the acquisition of a complementary business in Russia
Improvements to manufacturing, sales and back office functions
Benefit of Polaris’ quarterly expertise-sharing workshops focusing on key management areas such as LEAN, M&A, HR and profitable growth
What outcomes did private equity investment achieve?
EBITDA margin improvement from 8% to 25%, with profits rising from DKK23m to DKK78m
Net debt more than halved between 2009 and 2012
Globally diverse business – largest country accounts for just 12% of sales
Developed business plan ahead of realisation for next phase of Skamol’s growth
Investors
