Guy Hands, a private equity tycoon, has introduced a new special opportunities fund that has invested in Parmaco, a Finnish modular building firm.
The deal comes after the £4 billion refinancing and recapitalisation of Annington Homes in July 2017. It will see a Terra Firma lead a consortium that will acquire Parmaco from MB Funds, a Finnish private equity group.
Terra Firma Special Opportunities Fund IV has entered a partnership with Metric Capital, a private capital manager, and Sun Hung Kai & Co, a Hong Kong investment company, on the said transaction. It is expected to be completed by the end of this year.
Hands, who serves as the chairman and chief investment officer of Terra Firma, stated: “The Parmaco acquisition is exciting news. Under MB Funds, Parmaco has earned a reputation as a well-run, customer-focused business providing high-quality and flexible modular educational space solutions.”
He added: “We are looking forward to working closely with Ossi Alastalo and his team at Parmaco and with the teams at Metric Capital and Sun Hang Kai.”
He continued: “We anticipate investing significant capital in the business to further develop the asset base and diversify into new geographies.”
Parmaco constructs and rents nursing homes and schools. It aims to double the size of the firm in the next three to five years.
Ossi Alastalo, the chief executive of Parmaco, stated: “We are delighted to be partnering with Terra Firma, Metric Capital and Sun Hung Kai, and today’s announcement is a meaningful milestone in Parmaco’s development.”
He added: “Terra Firma, Metric Capital and Sun Hung Kai immediately recognised our potential and their experience and strategic expertise in developing and growing businesses will be highly valuable in achieving our expansion plan.”
He continued: “The prospects for our stakeholders – employees, shareholders, partners, suppliers and, most importantly, our customers – are very exciting and I look forward to continuing to lead the business through to the next stage of its development.”