11 April 2023
NLM Vantinge and CataCap enter partnership
The private equity fund CataCap acquires a majority share in NLM Vantinge. The company specialises in recycling and upcycling of industrial by-products and residues for the biogas industry in particular, as well as in the production of highly effective feed additives for primarily dairy cows. The additives, being based on traceability and focus on food safety, increase milk production and fat content from the cows, and thereby contribute to reducing the CO2 footprint from milk production. Three of four previous owners of NLM Vantinge have established a partnership with CataCap to continue the positive development and support the green transition.
LM Vantinge is an industrial service company that handles by-products and residues, which after processing and certification are included in the production of heat, biodiesel and biogas. The company’s main competence is recycling of by-products from industries that produce margarine, surfactants, soaps, emulsifiers, fatty acids, biodiesel, glycerol, milk powder, chips, etc. that are based on vegetable fat and oil products. By-products are primarily sourced from Europe.
In addition, NLM Vantinge produces a number of products that are included in feed compounds for primarily dairy cows. Some products are also used by the aquafeed industry. The products for the feed industry includes calcium soaped fats and sprayed fats, both sold throughout Europe as private label or under NLM Vantinge’s own brand Lipitec®. The feed products also include waste products as raw materials.
NLM Vantinge has a strong focus on quality, product safety and sustainability and is GMP+, REDcert and VLOG certified.
In the 2022 Annual accounts, the company had revenues of DKK 468 million and earned DKK 75 million before interest and depreciation (EBITDA). NLM Vantinge is headquartered in Vantinge, Funen.
“NLM Vantinge has undergone an impressive development in recent years within both feedstuff and biogas. In order to meet the high demand as a result of the green transition in Europe, it has been natural for us to search for a financial and operational partner, who can help with the transition going forward. We have been in dialogue with CataCap since 2016 and appreciate their financial and operational experience and belive they can help us accelerate the company’s growth potential,” says Per Leth Sørensen, CEO and co-owner of NLM Vantinge.
Of the previous owners, Per Leth Sørensen, Carsten Brogaard Jensen and Thomas Ågren will continue in their current roles and will own a significant share of the company together with CataCap.
NLM Vantinge addresses global megatrends and supports green transition
The strong growth in both business areas is driven by positive megatrends and need for increased biomethane production, thereby supporting EU’s ambition to reduce CO2 emissions with 55% by 2030.
“NLM Vantinge is a highly specialised supplier within calcium soaped and saturated fats for the feed industry as well as fatty liquid products for biogas plants in particular. The circular business model coupled with the high level of competence in fat and oil products makes the company highly relevant for the green transition ongoing in Europe. We have invested in the company because we believe there is an enormous step-change potential going forward,” says Rasmus Lokvig, partner in CataCap.
The investment in NLM Vantinge is the second investment for CataCap’s fund III. The fund focuses on catalysing the transformational growth in small and medium-sized companies with high growth and development potential.
The execution of the transaction is subject to approval by the competition authorities.
CataCap has been advised by Horten, Deloitte, The Footprint Firm and Bain.
NLM Vantinge has been advised by Moalem Weitemeyer and Anders Christensen (M&A)
CataCap
Rasmus Lokvig, partner
+45 23 43 25 74
rpl@catacap.dk
About NLM Vantinge
Current owners took over NLM Vantinge in 2006. All production facilities are located in Vantinge on Funen. The company has also a subsidiary without production in France.
NLM Vantinge provides industrial services related to waste and by-products for manufacturing companies in Europe. The service is carried out in collaboration with the companies, where an optimisation of the production lines means that the company’s waste and by-products can be used in other companies. Waste and by-products are thus upgraded to one product for another manufacturer.
NLM Vantinge manages logistics, regulatory approvals and control analyses and delivers an upcycled, certified product to its customers. As a rule, the products are sold directly to other production companies as a replacement for other raw materials.
In addition, NLM Vantinge produces calcium soaped fat and saturated rumen-protected fat for dairy cows, piglets and for use in the production of aquafeed. Feed products are sold all over Europe.
The basic business concept of NLM Vantinge is a comprehensive use and combination of scientific and engineering knowledge about chemical processes, legal and environmental issues.
About CataCap
CataCap is a Danish private equity fund investing in mid sized companies.
We partner with companies with significant growth potential and innovative business models with long-term sustainability.
Our team draws on decades of operational expertise – both within industry, and as private equity partners.
By merging the traditions of private equity with our systematic operational approach and human touch, we invest to unlock the full potential of the unique business models we identify.
We take active ownership, foster winning teams and catalyse growth to create value for people, businesses and investors, that endures beyond our time as owners.
www.catacap.dk/about
