Thursday 04 October 2018 12:59 pm | Updated: Tuesday 21 May 2019 4:24 pm

Terra Firma founder Guy Hands launches new special opportunities fund to buy Finnish modular building company

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Private equity tycoon Guy Hands has launched a new special opportunities fund that has invested in Finnish modular building company Parmaco.

The deal, which comes after the £4bn refinancing and recapitalisation of Annington Homes in July last year, will see a Terra Firma led consortium acquire Parmaco from Finnish private equity group MB Funds.

Terra Firma Special Opportunities Fund IV has partnered with private capital manager Metric Capital and Hong Kong investment firm Sun Hung Kai & Co on the transaction, which is expected to be completed by the end of the year.

Terra Firma chairman and chief investment officer Hands said: "The Parmaco acquisition is exciting news. Under MB Funds, Parmaco has earned a reputation as a well-run, customer-focused business providing high-quality and flexible modular educational space solutions.

"We are looking forward to working closely with Ossi Alastalo and his team at Parmaco and with the teams at Metric Capital and Sun Hang Kai.

"We anticipate investing significant capital in the business to further develop the asset base and diversify into new geographies."

Parmaco, which constructs and rents schools and nursing homes, is aiming to double the size of the company in the next three to five years.

Parmaco chief executive Ossi Alastalo said: "We are delighted to be partnering with Terra Firma, Metric Capital and Sun Hung Kai, and today’s announcement is a meaningful milestone in Parmaco’s development.

"Terra Firma, Metric Capital and Sun Hung Kai immediately recognised our potential and their experience and strategic expertise in developing and growing businesses will be highly valuable in achieving our expansion plan.

"The prospects for our stakeholders – employees, shareholders, partners, suppliers and, most importantly, our customers – are very exciting and I look forward to continuing to lead the business through to the next stage of its development.”