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Private Equity Investor Brief
German Private Equity - an attractive asset class for institutional investors.
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Case Studies
GROHE: a family-owned enterprise is strengthening its market position
In 2007, Germany’s biggest manufacturer of bathroom fixtures, GROHE, exceeded a turn-over of more than 1 billion Euros, for the first time throughout its company history. This development continued in 2008, when GROHE was able to maintain its EBITDA-growth and raise its consolidated earnings before interest, taxes and depreciation by six percent, to 216 million Euros (preliminary), coming from 203 Million in the previous year. Compared to 2007, and in spite of an economic crisis, the consolidated turn-over remained fairly stable, at 1.01 billion Euros (preliminary). As a result, the company achieved an operating margin of nearly 21 percent (2007: 20 percent). Cash in hand was sustained at a high level and amounted to 275 million Euros, at the end of the year. With respect to the German market, GROHE improved its turn-over to six percent and thus clearly increased its market share. All of this is evidence of a lasting success story. And the result of an intensive transformation, which began in the middle of 2005 and which fundamentally changed the face of a company that had always been famous for its high-class workmanship and innovative bathroom design. mehr »
Eterna Mode GmbH- how Managers turned into Entrepreneurs
Back in 1874, Swiss writer Gottfried Keller realised that "you are what you wear" and proceeded to write a short novel on the subject. Today, "Kleider machen Leute" is one of the best-known tales in German language literature. Even though the original story has a slightly different historical slant, the concept of clothing as the most distinctive element of a person’s appearance is still quite valid … mehr »
Q-Cells: Technology made in Germany
This is a textbook example of a German success story - and a success for private equity: Ten years ago, in an industrial estate close to the East-German town of Bitterfeld, three young scientists and one management consultant had the idea to produce solar cells. Today, their vision has turned into the world’s biggest manufacturer for solar cells and into one of Germany’s fastest growing enterprises. This development was made possible through lasting support from venture capital companies, who put their trust into the entrepreneurs’ business plan, right from the beginning. mehr »
Schütz Dental Group: a management buy-out preserves the company's identity
In the spring of 2005, Schütz Dental, a company with a long tradition, was facing a crucial change: After serving his company for 42 years, owner Horst Schütz decided to retire from operational business. In all those years, he had developed Schütz Dental Group (comprising four divisions: dental lab products, dentistry supplies, Laser technology and implants) into one of the world's leading manufacturers of dental products. mehr »
Agrolab GmbH Group: Scheming for business expansion
In 2001, after a meeting on corporate strategy, Dr. Paul Wimmer, managing director of the Agrolab group, realises that his business will not be able continue as it has done, so far. Even though it has grown at a respectable rate, year by year, and even though it has incorporated several smaller, competing laboratories, none of this has really resulted in a breakthrough. Major activities will be required, and this means large acquisitions. mehr »
Kabel Deutschland: Entertainment on a high level
State-owned enterprise turns triple-play-provider: Cable television network operator Kabel Deutschland (KDG) evolved into one of the Germany’s leading triple-play-providers, within only few years - a good example of the dynamics which a private equity investment may unleash. mehr »
Premiere: Pay TV Operator invests into new Technology
Premiere, a Munich based television broadcaster, used to be part of the KirchMedia-Group. After the parent corporation had filed for bankruptcy in 2002, Premiere was up for sale. In 2001, the company’s turn-over had been close to 800 million Euros, whilst the overall loss (EBITDA- consolidated earnings before interest, taxes and depreciation) amounted to the comparable sum of 775 million Euros. Premiere’s bad performance was one of the reasons for the group’s insolvency. mehr »
Wincor Nixdorf: Successful in difficult times
Turning an east Westphalian family business into a darling of the stock exchange: With the support of Kohlberg Kravis Roberts (KKR) and Goldman Sachs Capital Partners (GSCP), Wincor Nixdorf succeeded in becoming autonomous, after the company had been separated from Siemens. Furthermore, the company got itself enlisted in the stock exchange and managed to do so at a time when other IPOs were called off, one by one. mehr »
Cardfactory AG: Reshuffling the cards
A quick glance into your wallet will prove: There’s less hard cash around, but the number of plastic cards is on the rise. These may be simple identity cards with no further functionality, swipe cards with a magnetic strip (such as the "BahnCard”) or cards with an additional chip (such as EC / Maestro cash cards). In future, we will see cards with even more sophisticated technologies ending up in everyone’s purse, such as proximity cards based on RFID tags (Radio Frequency Identification), or identity cards featuring biometrics. Cardfactory AG from Oldenburg, Germany, has positioned itself in the market for such advanced card technologies. mehr »
Debitel: Success through good communication
When telephone operator Debitel was sold to the Freenet group of companies in March of 2008, this was the conclusion of a successful private equity investment. By virtue of the take-over, a new market leader in the field of mobile telephony had emerged, positioned even ahead of competitors such as DTAG or Vodafone. Debitel’s story illustrates how private equity can move a business forward. mehr »