Denmark’s largest pension fund ATP invests in Terma

Carsten Dilling, Chairman of the Board of Directors of Terma and Mikkel Svenstrup, Chief Investment Officer at ATP.

Denmark's largest defense company and leading high-tech company will for the first time have shared ownership. This will happen when ATP Long-Term Danish Capital becomes a minority owner in Terma.

Thus, ATP Long-Term Danish Capital invests in a successful Danish company, which today employs more than 1,700 employees – of which the majority work at the two large production facilities in Eastern Jutland.

The investment is an important step on the road to growth of the Danish defense industry, says Terma:

"There is a great need for the Danish defense industry to be able to deliver new technologies and more equipment. We need to be able to do more ourselves. This need has been expressed by the government, the European Commission, and many others. Therefore, we at Terma have launched an ambitious growth strategy where we will double our turnover over the next three years. Of course, this requires capital and a solid and long-term ownership that wants to be part of the growth journey, and we are incredibly pleased that ATP wants to do that," says Carsten Dilling, Chairman of the Board of Directors of Terma.

An attractive return and a secure contribution to society

For ATP, the investment in Terma is part of the ambitions to ensure solid and long-term returns for Danes' pension savings. The investment is made through ATP Long-Term Danish Capital and consists of a single-digit DKK billion amount in the form of equity investment and a loan facility.

"Terma is a very good fit for what ATP wants to do with Long-Term Danish Capital. It is an unlisted Danish company with a clear global potential – and here, as a long-term investor, we can act as a sparring partner on the coming part of the growth journey," says Mikkel Svenstrup, Chief Investment Officer at ATP.

He adds:
"In Terma, ATP sees both the opportunity to create an attractive return for our members and to invest in a growth company that creates new Danish jobs. In addition to being an investment with potential, ATP is making an important contribution with the capital injection at a time characterized by security policy instability."

The investment is the third single investment for ATP Long-Term Danish Capital.

Capital for transformative acquisitions

As part of Terma's ambitious growth strategy, with the goal of doubling revenue in three years, there are current plans to carry out several acquisitions:

"Terma is an important partner for Denmark's defense and our allies. We must deliver the technology that will defend Denmark and Europe in the future. We are already well positioned to take on this task, and with ATP's investment, we will gain additional capital to strengthen our position in a growing global market," says Carsten Dilling.

Facts about the investment

• ATP invests a single-digit billion amount divided between an equity investment and a loan facility.
• ATP joins Terma's Board of Directors with one non-executive board member.
• Terma will continue to be 100% responsible for operations and strategy.
• MW&L Capital Partners and Gorrissen Federspiel have assisted Terma with the investment.

Facts about Terma

• Terma is a high-tech, Danish defense company based in Lystrup near Aarhus and with 1,700 employees developing solutions within defense, security, and space.
• Terma has so far been 100% owned by the Thomas B. Thriges Foundation, which will continue to be the majority owner.
• Terma is a world leader in the development of radars, where the demand for both civilian and military use is growing significantly.
• Terma is strongly positioned in the space industry, with over 50 years of collaboration with both the European and U.S. space agencies, ESA and NASA. Terma produces a number of components that are crucial for the development of the paradigm shift that is underway in the space industry.
• Terma is a supplier of solutions to the defense industry, and at factories in Lystrup and Grenaa, Terma produces key components for the new Danish F-35 aircraft, among other things.
• In 2023, Terma entered into a 30-year framework agreement on integrated air and missile defense with the Danish Defence.
• In its most recent financial statements from May 2024, Terma's revenue increased by 17% to DKK 2.6 billion and profit before tax ended at DKK 228 million. 

Facts about ATP Long-term Danish Capital

• ATP Long-Term Danish Capital (established in 2021) invests in Danish companies and provides both capital and competencies to develop and scale the companies' position, and thus contribute to creating the large Danish companies of the future with global potential.
• Long-term Danish Capital invests in large minority stakes in unlisted companies from the growth phase to large and well-established companies. Common to all is a long-term focus on sustainable value creation in companies with competent and ambitious management, strong products/services, and operating in attractive markets.