Candover Investments Buys Thule Car Racks From EQT for EU465 Million

Candover Investments Plc, a U.K. buyout firm, announced the purchase of Thule AB, a Swedish maker of car roof racks, truck racks, cargo roof boxes, ski, kayak, canoe and bike carriers for 465 million euros ($595 million).

Candover is buying Thule from EQT Partners AB, a Stockholm- based buyout firm backed by the billionaire Wallenberg family. Owned by EQT since 1999, Thule Racks had sales of 2.2 billion kronor ($310 million) in 2003.

"Thule holds global market-leading positions and has considerable opportunities for expansion,'' John Arney, a director at Candover, said in a statement.

Typically it is the nature of buyout firms to fund two-thirds of each takeover with loans and then seek to expand their companies before selling in a five year time frame. UBS AG and Royal Bank of Scotland Group Plc are arranging loans for the Thule Rack takeover. Deutsche Bank AG advised Candover.


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