Leaving Wincor Nixdorf

KKR and Goldman Sachs Capital Partners completed their exit from German banking machine manufacturer Wincor Nixdorf, reaping a further €333m on top of proceeds from last May’s IPO.

The firms sold their remaining 38% stake at a price of €60 per share, delivering an impressive return overall when added to the €390m they raised last year. A dividend deal in December 2003 also allowed them to extract further cash from the company.

KKR and Goldman have now cashed out of the business, which they bought out from German engineering firm Siemens in 1999. The sales price of around €700m included about €200m in equity, the bulk of which came from KKR. Market sources said that the overall result delivered a return of over 3.5x for KKR.

The latest selloff came through an accelerated bookbuild through a private placement to institutional investors. “The second stage of the disposals still held by KKR and Goldman has gone very smoothly,” said Karl-Heinz Stiller, president and CEO of Wincor Nixdorf.

Wincor Nixdorf has been performing strongly. It plans to increase its dividend by 50% for 2005 and earlier raised its forecast for the fiscal year 2004/5 to 10% sales growth and 12% operating profit. This was due to a rise in first quarter sales. Net sales rose by 16.8% and operating profit increased by 24.1%.Net sales were €455.1m, up from €389.8m in the same period of the previous year.

Going forward the firm plans to build through smaller acquisitions.