In some more exciting M&A news, according to a recent report from Bloomberg News, EQT AB is exploring its options to sell the temperature sensor manufacturer Ellab at a valuation of more than 1 Billion Euros ($1.1 Billion). The company reportedly is working with Morgan Stanley on the deal, and has already received early interest from private equity firms, the report said.
Ellab is based in Denmark and is a 70-year-old company. It has manufactured high-precision systems for temperature, pressure and humidity validation and monitoring based on data loggers and thermocouple-based wired instruments for hospitals and other healthcare uses for all of that time and, now, also supplies to the food manufacturing industry. high-precision systems for temperature, pressure and humidity validation and monitoring based on data loggers and thermocouple-based wired instruments
EQT acquired Ellab in 2019 for an undisclosed amount. The statements at the time said that EQT would be working with Ellab to improve its go to market strategy, increase investment in new product development, and expand the company’s services. The existing management team was to stay in place through the acquisition, including then-CEO Peter Krogh, who is now a member of the Board of Directors, with Ludvig Enlund presently CEO.
“We are proud of Ellab’s accomplishments over the past decades and with the recent expansion of our product portfolio and as-a-service offering we believe that we can be an even more valuable partner to our customers in the future,” Krogh said of the acquisition in 2019. “EQT shares our strong company values and we believe that their global reach and sector expertise makes them an ideal partner and will place Ellab in an excellent position for continuing our momentum and further bolster the commitment to our customers.”
The deal was struck in an agreement between EQT and the IK VIII Fund, advised by IK Investment Partners. Ellab employs about 250 people worldwide with sales in more than 70 countries.
At the time of the acquisition, Rikke Kjær Nielsen, Partner and Investment Advisor to EQT, said, “EQT has followed Ellab for several years and is impressed by Ellab’s management team and its track-record of delivering outstanding value to customers through a strong offering across hardware, software and services. Ellab is a global market leader within Validation Solutions, which has been established through more than 70 years of innovation leadership and the Company’s strong customer focus. The Company is placed at the nexus of EQT’s strategic sectors and core geographies. As such, there is an excellent match between our two companies and EQT looks forward to partnering with Ellab’s management to jointly develop the Company into an even stronger global player.”
It seems that the partnership between EQT and Ellab has been a success, if the rumored price tag for the sale turns out to have been accurate.
Read the full article here
