News. 23/06/20

No wrongdoings on the part of Procuritas in Gram arbitration case

Today an arbitration award was delivered concerning the sale of the former Procuritas portfolio company Gram Equipment A/S to FSN Capital Fund V. A unanimous Arbitral Tribunal dismissed allegations that Procuritas acted fraudulently.

The Arbitral Tribunal, comprising Professor Torsten Iversen, Former President of the Danish Supreme Court Torben Melchior and Professor Mads Bryde Andersen, dismissed all accusations against persons associated with Procuritas. However, the Tribunal found reason to criticise certain circumstances in the target company Gram Equipment A/S, which is why the seller company Green Magnum S.A., was ordered to pay damages in this case. The length of the arbitration award is 429 pages.

Hans Wikse, Partner, Procuritas, is pleased that the tribunal did not place any fault upon Procuritas in terms of having misled FSN, but finds it regrettable that the Arbitral Tribunal has found that gross errors were committed in Gram Equipment A/S. He says that he appreciates the solid legal work of the Arbitral Tribunal, but that it is highly surprising that a seller company is to be held accountable for wrongdoings by Gram employees.

“The arbitration award entails that the seller has been found responsible for shortcomings of individuals in the target company as regards the disclosure of information during the sale process, while at the same time FSN’s claims in media against individuals associated with Procuritas are without any merit. We believe that certain parts of the arbitration award are surprising, for instance the individuals found responsible lacked motive as they jointly invested in the transaction together with FSN.

In 2017 FSN Capital Fund, through KG BidCo ApS, acquired Gram Equipment A/S from Green Magnum S.A., a Procuritas portfolio company. KG BidCo ApS later requested that the Arbitral Tribunal consider whether the seller had been fraudulent or acted with wilful misconduct.

“When sold in 2017, Gram Equipment A/S was a market leader, had a solid growth history and was well positioned for continued expansion. Company management believed completely and fully in the company’s future potential. FSN engaged a large number of advisors and was given every opportunity to perform thorough due diligence. It is regrettable that the Arbitral Tribunal has nevertheless found that such gross errors were committed within the target company,” says Hans Wikse.

For additional information, please contact:
Hans Wikse, Partner, Procuritas, Tel: +46 70 861 23 77

About Procuritas
Founded in 1986, Procuritas was the pioneer in introducing the concept of management buyouts in the Nordic region. Procuritas is currently investing PCI VI launched in 2017, with ca. MEUR 318 in committed capital, focusing on mid-sized companies in the Nordic region. With a passion for business, extensive industrial experience and more than thirty years’ track record covering a large variety of transactions, Procuritas has supported over 40 companies with the aim to accelerate their growth and realize their true business potential. Please visit Procuritas.com for more information on current and previous investments.

More news.

04/02/25

Strandberg Guitars appoints Markus Engelbrekts as new CEO

Strandberg Guitars is pleased to announce the appointment of Markus Engelbrekts as the new CEO, succeeding Mikaela Jansson. Markus Engelbrekts will officially join the company on February 1st, 2025. Strandberg Guitars, known for its innovative designs and high-quality instruments, is the worldwide market leader in headless guitars, under the .strandberg* brand. The company’s commitment to...

31/01/25

Procuritas announces promotions

Procuritas, the mid-market Nordic private equity investor, is pleased to announce two promotions within the team. Kenneth Christensen, Head of Financing, has been promoted to Partner at the firm. Since joining Procuritas in 2018, Kenneth has led and supported debt financing activities in both new and existing investments. With over 17 years of experience within...

30/01/25

We Select appoints Alexandra Vult von Steyern as CEO and Eric Matsgård as Chairperson

Procuritas is pleased to announce the appointment of Alexandra Vult von Steyern as CEO and Eric Matsgård as Chairperson of the Board to the We Select group. Both bring a wealth of experience in digital business and leadership, positioning the company for continued innovation and growth in the digital talent acquisition space. Alexandra Vult von...