It was eye-catching statement Last Friday: Royal VolkerWessels sold part of its private group to investment firm Triton Partners. The Rijssen construction group – once again wholly owned by the Wessels family since being delisted from the stock exchange for the third time in 2020 – announced last year’s results earlier today. Turnover increased by 3 percent to 6.8 billion euros in 2023, and net profit by 7 percent to 205 million.
What made this announcement so startling is that this growth is partly due to the energy and telecommunications divisions, which VolkerWessels is now selling. Homij, a subsidiary specializing in assembly technology, will also be acquired by Triton. The downsized VolkerWessels will henceforth focus entirely on its core activities in the areas of construction, real estate and infrastructure. “We have come to the conclusion that other activities are better aligned with Triton’s international ambitions and activities,” says a company spokesperson.
Read also
Private equity is recovering after a difficult 2023
This means that nearly a quarter of VolkerWessels’ 12,500 employees will find another employer, although the company swears the takeover will have no consequences for employees. The parties involved remain silent about the acquisition amount, according to Financial Times Its value ranges between 600 and 800 million euros. The new owner believes the former VolkerWessels parts could be more profitable, but does not appear to be planning to replace current management: “I look forward to accelerating growth with Triton,” said Stanley Maas, CEO of the three business units sold. .
Private equity investment firm Triton, which is headquartered in London, has been active in the Netherlands for years, although it probably doesn’t ring a bell immediately for most people. Unlike some other investors, it has remained free of publicized scandals, controversial acquisitions or notable financial hits since its founding in 1997. Triton treasures the haven, and didn’t want to ask any questions Monday either. Norwegian Refugee Council To answer. Not much remains about Swedish founder Peder Brahl a favour Although he had a skiing accident and owns a second home on his island near Stockholm.
Serious player
Triton, although little-known, is a serious player in the European private equity market, with invested capital of more than €18 billion. In 2015, it acquired the bulk of the bankrupt Imtech group, the profitable Scandinavian division Imtech Nordic, for €130 million. Deal: According to the curators, this business unit is worth 250 million euros.
In 2019, Triton opened an office in Zuidas, Amsterdam, with the aim of making further acquisitions in the Netherlands. “We see more than enough opportunities here.” He said It was opposed by Coos van de Linde, who will run the Amsterdam office F.D. Triton already owns a majority stake in technology services company Unica, and in 2017 acquired a 51% stake from the founding Van Vliet family. In the years that followed, acquisitions of tour operator Sunweb, instrument maker Royal Reesink, and medical chain Bergman Clinics followed.
Initially, Triton also announced that it would take over the management of tour operator Corendon, with the aim of merging it with Sunweb. But after the outbreak of the Corona crisis, this stopped at the end of 2020, which angered Corendon.
The latest deal would have fit the strategy Triton regularly uses: acquire a company and then develop it by acquiring other companies in the same sector. Areas that overlap – for example customer service or administration – can be merged and downsized, leading to increased profitability. like him Taking Unica has had fifteen smaller competitors in recent years I slept Imtech Nordic – now renamed Assemblin – is also struggling with a series of acquisitions.
improve the performance
While some private equity funds prefer to sell acquired companies after three or four years, Triton usually takes a little longer. A source who requested anonymity said that the period from acquisition to sale ranges on average between five and six years. It can also be longer; According to its own website, Triton has owned nine companies for a decade or more. Last year, Triton set up a new fund that allowed new and existing lenders to invest in four companies that Triton had owned for some time, including Unica and Asemblin. Investors in the “old” fund can thus be repaid through profit.
Triton says it looks for “fundamentally sound European companies” that are not achieving their full potential. After an acquisition, managers are often allowed to remain in their positions, but they will have to engage with outside specialists who will help improve performance. “Value creation,” in private equity terms.
Opinions differ on the degree of control retained by existing directors and shareholders after an acquisition. In technical service provider Unica I stay The Van Vliet family claims to have great influence, but at tour operator Sunweb, CEO Mattijs Ten Brink left abruptly last summer over a difference of opinion. I confess LinkedIn He had been fired.
Triton certainly isn’t afraid to take risks. For example, in 2021 it invested tens of millions of euros in the purchase and construction of stadiums in Northeastern Europe. The self-started LeDap (the opposite of “padel”) is supposed to grow from 90 fitness centers and 600 jobs to more than 200 centers and 1,700 jobs in just over a year. Since the hype after that had more or less died down, the investment was not very successful. Triton was forced to write off more than €60 million of pedal positions in 2022, some of which have now been destroyed. Convert it To shopping malls.
“Lifelong zombie fanatic. Hardcore web practitioner. Thinker. Music expert. Unapologetic pop culture scholar.”