Investee Company – Hochtemperatur Engineering GmbH (Germany)
Investee Company Business Type – Develops and provides facilities and components for high-temperature processes used in the production of raw iron, aluminium or in power generation.
Type of Financing – Management buyout
Equity Providers – Deutsche Beteiligungs AG
Equity Leader (Individual) – Torsten Grede, Deutsche Beteiligungs AG
Debt Providers – N/A
Debt Type – N/A
Debt Leader (Individual) – N/A
Equity Amount – euro24 million
Total Deal Value – euro24 million
Other Advisors – N/A
Comments – Deutsche Beteiligungs AG has acquired the engineering business of Vienna-based RHI AG. The engineering group consists of six divisions that develop and provide facilities and components for high-temperature processes used in the production of raw iron, aluminium or in power generation.
The future operations will be comprised under Hochtemperatur Engineering GmbH (HT-Engineering), based in Germany. The group generated worldwide sales of euro232 million last year and employs 780 staff, of which 510 work at various locations in Germany. Deutsche Beteiligungs AG, with its parallel fund, will hold a 92.5 per cent interest in the new company, with management acquiring 7.5 per cent of the shares.
HT-Engineering consists of six divisions with nine core companies consisting of: Didier-M&P Enerietechnik, Maerz-Gautschi GmbH, Kaefer Raco Engineering GmbH, Bachman Industries Inc, Maerz Ofenbau AG, Cimprogetti S.p.A., Zimmerman & Jansen-Gruppe, Hermann Rappold GmbH, and StrikoWesthofen GmbH.
Deutsche Beteiligungs is planning to work with the management to expand the divisions’ market and competitive positions. The goal is to exploit the group’s development potential and enhance its value.
Deutsche Beteiligungs AG and its managed co-investment fund will provide equity totalling euro24 million for this transaction. The purchase contract is currently subject to approval by the antitrust office.
Torsten Grede, member of the board of management of Deutsche Beteiligungs AG commented: “HT-Engineering represents a balanced portfolio of different businesses and an excellent platform for internal and external growth in coming years.”