First exit for Nord II: Hepro Group – a leading player within welfare technology and aid equipment, is sold to the Swedish company AddLife

First exit for Nord II: Hepro Group – a leading player within welfare technology and aid equipment, is sold to the Swedish company AddLife

February 2017. Nord II has signed an agreement with the listed Swedish company AddLife regarding a sale of all shares in the three companies in the Hepro Group; Hepro AS, Mektron AS and Hepro Sverige AB. Hepro Group develops, designs and markets welfare technology and aid equipment which aims to ensure that elderly people will be able to live safely in their own homes longer.

Hepro develops products that provide increased safety and make life easier for elderly people at home, a market with strong growth. This is the Private Equity company Nord Kapitalforvaltning’s first exit from the Nord II fund.

-Hepro is now acquired by a company that can continue the positive development, especially within welfare technology. This is also a confirmation that active ownership can help develop Northern Norwegian companies to gain attraction in international markets. It will be valuable for the individual company and over time help attract private risk capital to the region, says managing partner in Nord Kapitalforvaltning, Bjørn Hesthamar.

Hepro Group has succeeded in establishing itself in the Norwegian market as one of the leading companies within aid equipment for private homes and welfare technology.

-Even before acquiring Hepro we looked at this market as an attractive business area. Demand is growing and the supply side does not appear very structured. After we took over ownership of Hepro in 2014, we have worked to develop the company towards both existing and new markets. The initiative on digital welfare technology is an important example of this. I feel confident that the positive development will continue under AddLife’s ownership, says Bjørn Hesthamar.

-With a growing and aging population throughout the Nordic region, there is a strong need for assistive equipment for home care, and it is only expected to grow stronger. This involves functional products and digital welfare technology that will provide greater independence, activity and security for people with disabilities, says Kristina Willgård, CEO, AddLife

The company’s products and solutions are currently primarily sold to the public sector and private health care companies, with some sales directly to the end customer. Hepro Group has 38 employees and sales of approximately 155 MNOK, mainly in the Norwegian market.

-We have agreed with AddLife not to disclose the price for the company. I am however confident that our investors will be satisfied with the return, says Bjørn Hesthamar in Nord Kapitalforvaltning. Our investors will get approximately 2.5x the money in about two years.

A fund managed by French Rothschild & Co. and the government owned investor Argentum Fondsinvesteringer are the cornerstone investors in the fund Nord II.

Steinvender has been the seller’s advisor in the process.

The transaction is expected to complete on or about March 1, 2017

Tromsø/Stockholm, February 22, 2017

For further information, contact:

Bjørn Hesthamar
 Managing partner Nord Kapitalforvaltning AS
 +47 950 11 222

Kurt Kristoffersen
 CEO Hepro AS
 +47 932 93 030

Kristina Willgård
 CEO AddLife AB
 +46 705 10 12 23

Lars-Erik Rydell
 Business area manager Medtech AddLife AB
 +46 709 46 48 77