Co-investment: Leos Lekland with Litorina

NORD Holding is invested in the Nordic children’s playground company Leos Lekland – an investment that is led by Swedish private equity fund Litorina.

Sourcing

NORD Holding has a long-lasting relationship with Litorina and has invested in funds under management by the manager. Through this relationship and NORD Holding’s German heritage in combination with the German expansion plans of the company, we were able to co-invest alongside Litorina in this highly successful Swedish company.

Structuring

NORD holding is an experienced co-investor with the majority of the team having a 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 relationship with the company’s management based on trust. Our experience is that such a meeting contributes strongly to an efficient investment process.

NORD Holding has met with the Leos Lekland team and has visited the company in Stockholm prior to 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 in the transaction. The management, including the founder, remained significantly invested to align interests among the stakeholders.

Value-add

Leos Lekland is a roll-out model, characterized by strong and constant growth. Over time, Leos has taken over smaller competitors in strategically important locations and has expanded to Finland, Norway, Denmark and lastly to Germany, with a new location currently being build in Bremen. The expansion to Germany was foreseeable and made NORD Holding the preferred co-investor in this transaction.

Follow-on

NORD Holding participated in replacing the mezzanine financing in 2017. Additionally, the investment in Leos Lekland and in Litorina were among the first investments completed in Scandinavia by NORD Holding. As a result, Scandinavia is currently one of NORD Holding’s most preferred and represented markets.

We have very much appreciated working with NORD in Leos and their support both financially and commercially. We picked NORD among several potential co-investors since they immediately understood the business model of Leos and the potential to expand the concept in northern Europe. NORD showed a clear edge in supporting us taking Leos to the German market, which was part of the value creation for Leos at the beginning.

Lars Verneholt
Partner Litorina