Barona Group Oy and CapMan Buyout X fund have agreed on CapMan investing in Forenom, which is a company owned by Barona Group. CapMan is to buy the majority of the share capital of Forenom. Barona Group Oy and the management of Forenom will remain as minority shareholders in the company.
As part of Barona Group community Forenom has reached a status as a frontrunner and market leader of the accommodation sector in Finland. In the future, Forenom’s strategic goal is to become the strongest business accommodation provider in Northern Europe. With this new investment, Forenom and its partners are certain they will get closer to their internationalisation goals.
“The development of the field is fierce. In this situation, it is especially inspiring to have a top professional of CapMan’s calibre as our growth partner. Together, and with the support of our customers, we are well-positioned to earn our place in the forefront of the development of the accommodation business,” comments Johannes Kangas, CEO of Forenom.
“We sought a strong partner for the implementation of Forenom’s strategy. We believe, that CapMan, with expertise in the hotel and real estate sectors as well as in the internationalisation of businesses, is the right partner to help Forenom reach its goals,” says Markus Oksa, CEO of Barona Group.
“We are very pleased with our investment, which allows us to accelerate Forenom’s growth and utilise the opportunities of a dynamic market. Traditionally there has been a gap in accommodation services between hotel accommodation and permanent housing. The demand for high quality housing solutions has grown and the market for housing services is becoming increasingly diverse. Migration and for example more prevalent international secondments support this trend and we expect the Nordic markets for serviced apartments to grow significantly faster compared to other accommodation and hospitality markets. We see growth opportunities in accelerating organic growth and in consolidating the fragmented Nordic market thanks to Forenom’s strong position and brand. Forenom’s committed management has been successful in developing the company and in creating a strong and unique corporate culture. We are glad to continue together from here,” says Pia Kåll, Partner at CapMan Buyout.
Forenom offers broad and comprehensive solutions to its clients independently as well as in collaboration with other members of Barona Group. With this arrangement, preconditions for development of services are expected to improve further. Through this partnership, advanced service ability is pursued.
“There is increasing demand for our services as mobile work becomes more common. This arrangement will bring about exactly the kind of know-how we need in order to evolve our services to become more international and flexible”, states Johannes Kangas.
The investment in Forenom is the ninth of the CapMan Buyout X fund, which was established in 2012. The transaction is subject to the approval of the competition authorities and is expected to close on 31 December 2016.
Markus Oksa, CEO, Barona Group Oy, Tel. +358 40 585 6619
Johannes Kangas, CEO, Forenom Oy, Tel. +358 40 572 1421
Pia Kåll, Partner, CapMan Buyout, Tel. +358 207 207 555
Founded in 2000, Finnish Forenom manages over 3,200 furnished apartments, as well as several aparthotels and hostels around the Nordic countries. By the number of apartments and turnover, Forenom is the market leader in business accommodation in the Nordic countries. The versatile clientele of Forenom includes 25,000 private customers and corporations. Forenom has a staff of around 260 employees and is expecting €60 million in turnover in 2016. In addition to offices in Finland, Forenom has offices in Stockholm, Oslo, and Copenhagen. Friday Flats, an online community for home rental and hosting, is also a part of Forenom.
Barona Group is a community of Finnish companies working in various sectors to improve working life. Barona Group was founded in 1999, and its turnover in 2016 is expected to exceed €300 million. We employ over 5,000 employees. Our mission is to build bespoke, innovative solutions in order to facilitate development and growth for our customers. Currently, we operate in nine countries including Finland, Sweden, Norway, Denmark, Estonia, Russia, Poland, Spain, and Belgium.
CapMan Buyout is a specialised mid-market private equity partnership in the Nordic region, with 18 investment professionals in Finland and Sweden. The team has made more than 80 investments and 60 exits since 1989 and its tenth fund CapMan Buyout X is currently in active investment phase.
CapMan is a leading Nordic investment and asset management company. For more than 25 years, we have been developing companies and real estate and supporting their sustainable growth. We are committed to understanding the needs of our customers in an ever-changing market environment. Our objective is to provide attractive returns and innovative solutions for our investors and value adding services for professional investment partnerships, growth-oriented companies and tenants. Our independent investment partnerships – Buyout, Real Estate, Russia and Nest Capital – as well as our associated company Norvestia are responsible for investment activities and value creation. CapMan’s service business offering includes fundraising advisory services, purchasing activities and fund management services to both internal and external customers. CapMan has 100 professionals and assets under management of €2.8 billion.