MB Funds to sell A-Inspection Ltd to Bridgepoint
MB Funds is to exit A-Inspection Ltd (“A-Inspection”) and to sell the company to Bridgepoint, the European private equity firm. Under the ownership of MB Funds Oy, the company has experienced strong growth and become more international, which attracted the interest of many companies in the field as well as private equity investors. The management of the company will continue as owners and in their current positions in the company.
MB Funds together with the operative management and fund investors, acquired A-Inspection (formerly Finnish Motor Vehicle Inspection Ltd), a company offering vehicle inspection, registration and testing services as well as driving examinations, from the state of Finland in April 2003. A-Inspection has experienced strong growth in turnover. The company had sales of 81.3 million euros in 2004.
A-Inspection has succeeded in expanding its operations abroad, particularly in the Baltic Sea Region. The company is the leading private enterprise engaged in vehicle inspection, registration and drivers’ examination services in Northern and Eastern Europe. In addition to Finland, the company has vehicle inspection operations in Latvia, Poland, Denmark and Russia. The number of inspection stations is nearly 200, of which over 160 are situated in Finland.
Seeking international growth
The strongest growth expectations are currently focused on Denmark, where the A-Inspection subsidiary A-Inspektion will have over 20 inspection stations by the end of the year 2005. Extending operations is planned, particularly in growth centres. The Danish market for vehicle inspection operations was opened up to competition in January 2005.
This year, A-Inspection has also begun vehicle inspection operations in Russia. The first two A-Tehosmotr inspection stations have been opened up in St Petersburg, and the expansion of operations to Moscow is under preparation.
“Vehicle inspection operations are, at the moment, deemed to have a lot of growth potential in the Baltic Sea Region. A-Inspection has succeeded in the development of its business operations and in establishing operations abroad tremendously well, so there were several parties interested in purchasing the company. Finally, Bridgepoint made the most attractive offer”, says Hannu Puhakka, Chairman of the Board of A-Inspection and Partner from MB Funds.
The company management see the change in ownership as a positive development.
“The new owner will guarantee good resources for developing services in Finland and for international expansion”, says Lasse Korppi, the current and future Managing Director of A-Inspection.
The parties to the transaction have agreed that the purchase price will not be published.
Alfred Berg ABN AMRO acted as financial adviser and Roschier Holmberg as legal adviser to the sellers.
Further information:
Hannu Puhakka
Partner, MB Funds
+358 9 1310 1352 / +358 50 511 3917