KKR & Co. to invest in Hilding Anders AB

By IVCPOST Staff Reporter

Aug 01, 2013 10:04 PM EDT

Sources close to KKR & Co. said that the private equity firm is planning to invest EUR350 million or around US$463 million in Hilding Anders AB. The massive inflow of investment in the long-standing Swedish bedmaker allowed the company to cut down its debt, said two sources with knowledge of the deal. KKR is one of the world's most active private equity companies.

The sources said that the funds would be used to repay Hilding Anders's term loan B debt worth EUR200 million. KKR's commitment would be given in the form of payment-in-kind notes. A payment-in-kind deal is type of financing where interest on a loan can be repaid using more debt.

The proposed financing follows rumors that Hilding Anders shareholder Arle Capital Partners Ltd. wanted to sell the Sweden-based Malmo as well for as much as SEK10 billion or US$1.5 billion earlier this year. According to data released by Bloomberg, Arle Capital Partners obtained Hilding Anders AB in 2006.

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