Co-Investment: Leo's Lekland with Litorina
Sourcing
NORD Holding has a long-lasting relationship with Litorina and is a Limited Partner in their funds. Through this relationship and NORD Holding’s German heritage, in combination with Litorina’s plans to expand into Germany, we were able to co-invest with them in this successful Swedish company.
Structuring
NORD Holding is an experienced co-investor, with the majority of our team boasting an extensive background in direct private equity investments. For every Co-Investment, the NORD Holding team meets the management of the company to address fundamental due diligence questions and to build a personal and trusting relationship with the company’s management. In our experience, these meetings contribute heavily to an efficient investment process.
NORD Holding met with the Leo‘s Lekland team and visited the company in Stockholm before making the investment. The transaction was structured with a majority stake being taken by Litorina, a co-investment from NORD Holding, and a small ownership stake for a mezzanine provider. The management, including the founder, remained significantly invested in order to align interests among the stakeholders.
Adding value
Leo’s Lekland is a roll-out model, characterized by strong and constant growth. Over time, Leo’s has taken over smaller competitors in strategically important locations, and has expanded to Finland, Norway, Denmark, and most recently to Germany, with a new location currently being built in Bremen. The expansion into Germany was a natural next step, which made NORD Holding the preferred co-investor in this transaction.
Following up
NORD Holding assisted further in 2017 by replacing the mezzanine financing. The investment in Leo’s Lekland and in Litorina was one of the first investments completed by NORD Holding in Scandinavia. Nowadays, Scandinavia is currently one of NORD Holding’s most favoured and well-represented markets.
We have very much appreciated working with NORD Holding on Leo’s and their support both financially and commercially. We selected NORD Holding from among several potential co-investors since they immediately understood the Leo’s business model and the concept’s potential to expand in northern Europe. NORD Holding demonstrated its clear edge over competitors as it supported us in taking Leo’s into the German market, which was part of the value creation for Leo’s at the beginning.
Partner Litorina
