Private equity firm Terra Firma has led a consortium to acquire Finnish property firm Parmaco from MB Funds, a Finnish private equity firm.
The acquisition is being made in partnership with Metric Capital and Sun Hung Kai, an investment firm.
Parmaco specialises in building and renting buildings for schools, day care providers and nursing homes. It operates primarily in Finland but has recently expanded its operations into Sweden.
Over the last four years the company has grown its asset base six-fold and now has a new build portfolio spanning more than 200,000 square metres of space. Over the next three to five years its strategy is to double in size again to over 500,000 sqm, supported by strong demand from local municipalities for flexible space which can meet modern educational requirements.
Guy Hands, Chair and CIO of Terra Firma, said: “Under MB Funds, Parmaco has earned a reputation as a well-run, customer-focused business providing high-quality and flexible modular educational space solutions. We are looking forward to working closely with Ossi Alastalo and his team at Parmaco and with the teams at Metric Capital and Sun Hung Kai. We anticipate investing significant capital in the business to further develop the asset base and diversify into new geographies.”
Ossi Alastalo, CEO of Parmaco, added: “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. 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.”