STJ advises Nordic Capital on its $136m clean-up trade in Munters AB – completing a 15 month journey realising c. $430m in proceeds while assisting to enable 50%+ share price appreciation through fundamental re-rating.
We are pleased to announce that STJ has advised Nordic Capital on its successful clean-up trade in Munters AB, a leading global provider of sustainable climate solutions to customers in sectors with highly attractive end-markets, raising $136m, or 14.7% of the Company. The trade was structured as an intra-day bought club deal, pricing at a 3.8% premium to the spot price, an 8.6% premium to the 12-month VWAP and a 53.2% premium to the 52-week low. The trade was concluded against a background of high volatility on the day of FY results and after careful consideration of various structures, enabling a complete de-risking of the clean-up trade at an attractive valuation level.
This placement completes a 15-month journey with Nordic Capital on its investment in Munters, where STJ had been engaged in October 2018 to advise on positioning and monetisation options. The STJ Strategic Research Advisory team worked closely with Management and recommended a 3-step plan to help reset the equity story focusing on a repositioning of the equity story and resetting of guidance, planning for a Capital Markets Day and series of non-deal roadshows with an interim management team, following significant Company underperformance since IPO (where STJ was not involved). During that process, the share price recovered by c. 50% + and this enabled a series of carefully executed sell-downs over a period of 8 months starting in June 2019, ending with the clean-up trade on 13th February 2020.
Following significant reverse inquiries from investors in the lead-up to the results and given share price performance on the day of results, the deal was structured as a club deal with 5 long-only principal investors, enabling a placement of the full remaining Nordic Capital stake at a premium to the live spot price on that morning against a live volatile share price. The deal was placed with high quality investors, including several new investors, leaving the company with a diverse and supportive shareholder base and completing the transition from private ownership with Nordic Capital to a fully distributed public shareholder base.
Journey from STJ engagement to Nordic Capital full exit: