Procuritas Capital Investors V exits SEM, the last remaining investment in the fund, and prepares closure of a successful fund with above target return

Procuritas Capital Investors V (“PCI V” or the “fund”) has today entered into a share purchase agreement regarding the divestment of all shares in Swedish Electromagnet Invest AB (publ) (“SEM”) to PHINIA Inc (“PHINIA”), (NYSE:PHIN), a leader in premium fuel systems, electrical systems, and aftermarket solutions. 

Founded in Sweden in 1915, SEM applies more than 100 years of experience delivering ignition systems to spark ignited internal combustion engines for commercial vehicles, to small engines for handheld tools, and to large stationary engines.

Kenneth Christensen, Partner at Procuritas (investment advisor to PCI V) commented, “It has been a pleasure to work with the SEM team. During PCI V’s ownership revenues have increased with more than 50% at stable high profitability margins despite facing several macro challenges along the way, and as part of that entered new markets and expanded its customer base. Further, through its strong R&D capabilities, SEM has continued its historical track record of developing new innovative solutions together with its customers, with most recent product offering being the ignition systems for zero emission commercial vehicles. As a result, I believe SEM today is well positioned in the ongoing green transition within commercial vehicles and that PHINIA will be a great new partner for SEM on that journey.”

Mattias Feiff, Co-Managing Partner at Procuritas added, “SEM is a great company with a strong market position in its niche. With the ongoing green transition, the market is opening up for new exciting growth opportunities for SEM, and we believe it is the right time for SEM to get a new long term strategic partner, which they now will have with PHINIA. For Procuritas the divestment of SEM also marks the final exit of Procuritas Capital Investors V, which has been a very successful fund delivering well above our target of 3x gross return.”

Magnus Hellström, CEO of SEM, commented, “It has been a pleasure to work with Procuritas. The company has developed in so many aspects during this journey thanks to the strong support from Procuritas. We have developed new product platforms and added world leading OEMs to the customer base, positioned ourselves well for the green transition and increased revenue while tackling macro challenges as the Covid-pandemic. It feels like a perfect timing to now bring in an industrial owner with strong brands and a large complementary product portfolio. We see very good opportunities for synergies. We are very proud of the journey we have made together with Procuritas and look forward to the future as part of PHINIA Inc.”

The transaction is subject to approval from the Inspectorate of Strategic Products, which is the relevant authority under the Swedish foreign direct investment (FDI) rules. The transaction is expected to be completed during Q3 2025.

PCI V was advised by Alantra (M&A), Gernandt & Danielsson (Legal) and Deloitte (Financial).