HgCapital tunes out of Hirschmann

London-headquartered firm HgCapital has completed its exit of the Hirschmann group through the sale of its car communication (HCC) business by selling its stake to the management team.

HCC supplies antenna systems for radio and TV reception, navigation, telephone and other automotive operational applications to the European motor vehicle industry.

HgCapital made its first exit from Hirschmann in January when it sold Hirschmann Automation and Control (HAC) for €245m. HAC is a specialist in industrial ethernet solutions and industrial connectivity, now owned by Belden, a US maker of special-purpose cables.

In this final sale, shares in HCC will now be held by Viktor Schicker, CFO of the Hirschmann Group, Reinhard Sitzmann, CEO of the group, Ludwig Geis, CEO of HCC, and Joachim Brandes, CFO of HCC.

Justin von Simson of HgCapital in Frankfurt said: “The transaction brings to a favourable conclusion what has been an extremely successful involvement for us with the Hirschmann Group. As was already the case with Hirschmann Automation and Control, we have also found an ideal solution for Hirschmann Car Communication that both preserves continuity and gives the company the opportunity with its experienced management as new owners to maintain the positive performance of the past few years.”

HgCapital acquired the business in February 2004 for €115m through a management buyout from German technology group Rheinmetall. It set about splitting the company into HAC and HCC, oversaw the sale of two non-core subsidiaries, made operational improvements to develop efficiencies across the group, and invested in developing new products.

Return details for the sale of HCC have not been disclosed but the firm did make a 5x multiple on the HAC exit.