German manufacturer of ophthalmic lenses for spectacles
Rodenstock, founded in 1877, is Europe’s No 3 and the global No 4 in the manufacture of optical lenses and frames. A strong B2B brand internationally but with a consumer base in Germany, it is mainly present in Europe where 80% of the company’s sales are for prescription lenses. It has production facilities for lenses at 11 locations in 10 countries with two thirds of its output in Europe, over 50% of which is in Germany. Revenues for the business in 2005 were €345m.
The company has also developed leading manufacturing technology for high performance progressive lenses. Bridgepoint estimates that the global market for corrective lenses is worth between €7.5bn and €9bn, of which 28% is in Europe.
According to Uwe Kolb, Bridgepoint partner responsible for investment activity in Germany, the Rodenstock brand is one of the company’s key assets in a market enjoying annual growth rates in excess of 4% for its core products.
Following the acquisition of Rodenstock by the Permira Funds in June 2003, the company repositioned itself with a focus on style, innovation and technology leadership. In order to achieve this, the company has since invested a total of €100m. Research and development expenditure have increased 50% since 2003. Thomas Krenz, managing partner of Permira in Frankfurt added: “To us Rodenstock is a very good example of how a private equity investor and a company with a family background can complement each other. Together with management and the employees of Rodenstock, we managed to turn the company into one of the trendsetters which represents a benchmark in the optical industry.”
Debt for the transaction was provided by Royal Bank of Scotland and Société Générale.