Industri Kapital pushed ahead with further expansion into Germany, as the Industri Kapital 2004 fund entered into an agreement to acquire DSI, a global provider of tensioning products used in bridge building, slope stabilisation and mining.
The transaction gave DSI an enterprise value of €175m, according to sources close to the deal. This acquisition follows on from the Nordic-based buyout firm’s previous German investments, which include Gardena, Poggenpohl, Pfaff Haushaltsnahmaschinen and i-centre.
After the buyout, Industri Kapital intends to implement a buy-and-build strategy, as it has done at other portfolio companies including Nobia and Consolis.
“DSI benefits from an excellent brand reputation and market leading position together with a strong track record,” said Detlef Dinsel, partner at Industri Kapital. “In particular, we intend to pursue appropriate add-on acquisition opportunities.”
DSI has been acquired from Walter-Bau, one of Germany’s large construction companies, which is in administration.
DSI has been a separate entity from the parent company and, given its financial strength and profitability, was identified as a potential sale candidate prior to the insolvency process.
Given limited business overlap with the remainder of the Walter Bau Group, DSI has not been impacted by the insolvency of its former parent. The current management team will stay with DSI and will take a significant stake in the equity of the company.
Headquartered in Germany, DSI has more than 1,100 employees globally with operations across Europe, Asia-Pacific and the Americas. With a turnover of about €300m in 2004, the company has achieved annual average growth of above 10% since 2000.
Industri Kapital manages close to €4bn in fund commitments. Since 1989, it has acquired 50 European companies. The current portfolio encompasses 21 companies with a total turnover close to €7.5bn.