KFI Kapital divests Purac to Beijing Drainage Group

KFI Kapital has sold waste water treatment company Purac to SDIC & Beijing Drainage Investment Fund, a fund majority-owned by the Beijing Drainage Group. Before the transaction, KFI Kapital owned 92,2 per cent of the shares in Purac AB through a holding company.

Purac was founded in 1956 in Lund and has been majority owned by KFI Kapital through the holding company Läckeby Water Group since 2008. Under the ownership of KFI Kapital, Purac has developed into a leading contractor within water and wastewater treatment and biogas production in Scandinavia and China. The company is expected to generate sales of approximately 730 MSEK in 2015, with 143 employees in four countries. Purac is managed from its head office in Lund, and is primarily active on its home markets in Sweden, Norway and China.

- Purac is a leading player on a growing market and there has been a great interest for the company. With Beijing Drainage Group as owner, Purac will be perfectly equipped to continue its successful expansion, especially in China, says Stefan Lambert, CEO of KFI Kapital.

- Beijing Drainage Group shares our vision of Purac’s future development and we look forward to refining the company together with them. Through the transaction, Purac will have a strong long term owner, according to Jonas Fack, CEO of Purac.

- We have worked with Purac since the early 1990’s on the Chinese market and the acquisition will enable our cooperation to reach a new level. We look forward to taking over the responsibility for Purac and to continue developing the company together with its management.  We see great potential in continued growth both in Scandinavia and in China, says Fu Xiao, CEO of SDIC & Beijing Drainage Investment Fund.

EY Corporate Finance acted as financial advisor and Vinge as legal advisor to KFI Kapital in connection with the transaction.

KFI Kapital is an investment company focusing on small, profitable companies with a Swedish base. KFI Kapital is owned by KF Invest, a fully-owned subsidiary of KF. For more information, visit www.kf.se

Purac, founded in 1956, is a leading EPC company within water and wastewater treatment and biogas procuction, active in Scandinavia and China. The head office is located in Lund. For more information, visit www.purac.se

SDIC & Beijing Drainage Investment Fund (SDIC), is a fund mainly sponsored by a majority-owned subsidiary of Beijing Drainage Group (BDG). SDIC owns and develops businesses focused on water and wastewater treatment in China. SDIC has available investment funds of 10 GRMB. BDG is a state-owned Chinese company that owns and operates 95% of all reclaimed water, wastewater and sludge reuse utilities in Beijing.

For more information:

Stefan Lambert, CEO of KFI Kapital, +46 70 216 65 69

Jonas Fack, CEO of Purac, +46 70 164 43 79

Fu Xiao, CEO of SDIC & Beijing Drainage Investment Fund, +86 1350 117 95 13