Private equity firm CataCap has entered into a partnership with the largest nightlife group in the Nordics, REKOM, which owns and operates 77 bars and nightclubs in Denmark, Norway and Finland. CataCap will become the majority shareholder in the group, which is expected to generate revenues of app. DKK 500 million and an operating profit of app. DKK 100 million in the current financial year. Together with the group’s current owners and management, CataCap will strengthen the organisation and make it ready for further international expansion.
CataCap has acquired more than half of the nightlife group REKOM, which owns and operates a large number of bars and nightclubs in the Nordics.
The group was founded in 2007, and today employs over 2500 people and operates 77 venues from six administrative offices. “REKOM has been in CataCap’s sights for some time. They have developed a professional and competitive operating platform and have repeatedly demonstrated that it can be rolled out in new markets with great success. In close collaboration with the management and the employees, we look forward to realise the huge potential that continues to exist in the group,” says Vilhelm Hahn-Petersen, partner in CataCap.
“We will further develop REKOM’s successful platform. Among other things, we will look at how to strengthen the organisation to position REKOM for further expansion and enter new markets both inside and outside the Nordic region,” adds Vilhelm Hahn-Petersen.
This is the ninth investment for the private equity firm CataCap, which was established six years ago. CataCap focuses on catalysing growth in small and medium-sized Danish companies with high growth and development potential.
Plans for continued expansion.
REKOM’s CEO Adam Falbert and the rest of the group’s management will continue in the company and will remain as shareholders. In addition, the management and CataCap have chosen to give a number of key employees the opportunity to become shareholders in connection with the deal.
“It’s been full speed ahead since 2007. In the last year alone, we have added 30 bars to the portfolio, and we have a clear ambition to accelerate growth even more. This is why we have been looking for a partner to support us both financially and organisationally. We have found that partner in CataCap,” says Adam Falbert, the founder and CEO of REKOM.
CataCap has been assisted by Accura, EY and EY Box, as its legal, financial and commercial advisor, respectively. REKOM was advised by Deloitte Corporate Finance and DLA Piper.
For more information contact:
CataCap invests in small and medium-sized Danish companies which have a significant development potential and an innovative business model with a long-term raison d’être. The concept is to act as a catalyst for sustainable business growth through a systematic and consistent approach for strengthening business development, operational processes and management competencies in an active collaboration with a number of strategic partners and the companies’ management and employees. CataCap operates with an extended organisation, where the fund’s own people are complemented by Operating Partners, Development Partners and Industrial Advisers, from which the individual teams around each new investment are recruited. CataCap is an active and engaged owner. The purpose of the systematic hands-on approach to develop the fund’s companies is to increase the speed and durability of the companies’ business growth and thus create long-term value for all of the stakeholders and stable, higher returns for investors.
REKOM is the largest nightlife group in the Nordics, and was founded in 2007. The group owns and operates 77 venues located across the whole of Denmark and in Norway and Finland.
These venues include après-ski and cocktail bars, pubs and nightclubs, both of individual concepts with their own characteristics and popular chain concepts.
REKOM employs around 2500 people and has more than five million visitors annually.