Leadec sells product engineering and prototyping at the Chemnitz site

Industrial service company Leadec, a member of the international private equity group Triton, sold its product engineering and prototyping businesses at the Chemnitz site. Each of these businesses holds leading market positions in its niche, yet both now fall outside the company’s core business area. The sale is a part of Leadec’s strategy of focusing more tightly on its selected service lines and expanding these globally. The technical service business will be organized into four clusters in the future: Install, Maintain, Support, and Digitize & Optimize.

Leadec found two perfect buyers for the businesses. Hörmann Group picked up product engineering while the ROBUR Group purchased prototyping. The new owners, who both set acquisition of the employees and their know-how as critical prerequisites, offer the two departments improved developmental possibilities.

Consus Partner was the exclusive adviser to Leadec throughout the entire sale process.

For Consus Partner, this project represents the  for Triton, each of which was a smaller carve-out from its company portfolio. It demonstrates our strength in handling complex transactions with detailed preparation and in successfully identifying the right buyers.

ISS Facility Services to be the new service provider to Deutsche Telekom

Starting in July 2019, the ISS Group will provide integrated facility services for Deutsche Telekom at around 9,000 of its sites nationwide. The Telekom order is one of the largest outsourcing agreements in Europe and consists of multiple ten-year contracts with subsidiaries of the Deutsche Telekom AG. Once implemented, these contracts will account for about 4% of the revenues of the ISS Group, based on 2016.

Around 6,000 ISS employees will be dedicated to supporting Deutsche Telekom staff and managing several thousand buildings, antennae, towers, masts and other technical systems.

Consus Partner provided comprehensive support to the ISS Group, including overall project management and financial modelling. This continues its  successful collaboration with ISS, after the purchase of the former E.ON subsidiary Evantec, acquisition of VSG from Vattenfall and other projects.

ISS acquires facility management provider Evantec from palero

ISS acquires faciliy management provider Evantec from paleroISS Facility Services Holding GmbH, a subsidiary of Danish ISS A/S, has acquired EVANTEC GmbH from private equity investor palero invest. Prior to the takeover by palero, EVANTEC was part of the E.ON group. With around 800 employees, the company generated around EUR 50mn sales in 2016 with technical, infrastructural and nuclear-related services.

This acquisition further strengthens the professional skills and management expertise of ISS in Germany in the field of technology. After winning Vattenfall’s Facility Management contract in 2014, the competence acquired with EVANTEC offers ISS very good opportunities for further development in the energy sector.

Consus Partner advised ISS on the acquisition. This constitutes our 12th completed transaction in the field of industrial services and our 4th transaction for ISS.

“Consus Partner Goes Southeast Asia” – A New Office Opens in Cambodia

Consus Partner has opened an office in Cambodia from which it can better cultivate the Southeast Asian market, especially Cambodia and Myanmar. The region has been experiencing dynamic growth and industrialization such as Myanmar recently opening its borders to overseas companies and Cambodia seeing the construction of its first large factory.

Our initial involvement was to advise the Gauff engineering group as it set up a joint venture in Cambodia in 2009 and another in Myanmar in 2012. The following year we advised the Daun Penh (Cambodia) Group (“DPCG”) as it entered an exclusive sales agreement with Sebapharma to market the latter’s products in Myanmar. DPCG is one of the leading family-owned companies in Southeast Asia and it has been working tirelessly to help Cambodia and Myanmar in particular to develop.

Consus Partner has been represented on site in Cambodia by founding partner Dr. Philip Zimmer since 2015. At present he is working with DPCG to explore options for cooperation with European mid-sized companies who want to tap into new markets in the region. Independently of DPCG, we also advise overseas companies who wish to enter the region.

Aventics Sells Tooth Chain Business to Renold

tomb_gr_engl_31AVENTICS GmbH, a company belonging to the private equity fund Triton, has disposed of its tooth chain business through an asset deal. Tooth chains are integral to drive and conveying systems, used for example by carmakers and glass producers. Although the business was a global market leader in its niche, AVENTICS chose to divest it to focus on its own core business of pneumatics.

Happily AVENTICS found the perfect buyer in the English company Renold plc, itself a global market leader in the manufacturing of chains and chain drives. The new owner, who felt it was extremely important that all of the employees accept the transfer, offers greater development opportunities for the business, which has a plant in Gronau an der Leine.

Consus Partner was the exclusive advisor for AVENTICS throughout the entire sales process.

All six of the transactions we supported last year were concluded with foreign buyers (3 in HK/China, 2 UK, 1 USA). Half of them were carve-outs. This demonstrates both our strength to handle complex transactions with in-depth preparation and our ability to identify the right international acquirers successfully.

Triumph Sells Dorina Brand to Hop Lun Group

carousel_tomb_30_engl.pngTriumph International, one of the world’s largest lingerie manufacturers, has sold its value segment brand DORINA to Hop Lun, a Hong Kong-based lingerie group.

DORINA with its about 40 employees in Munich and Heubach, Germany, markets ladies’ underwear mostly in the hypermarket and supermarket channel. Aside from Germany it is also very successful in several other European countries such as Hungary and Austria.

Triumph continues the refocusing of its brand portfolio with the sale of DORINA in order to concentrate on its main brands Triumph and sloggi. Hop Lun gains a successful German and European brand in addition to their existing brands Scandale, Marie Meili and 6ixty8ight. It also improves its access to the hypermarket and supermarket segment.

Consus Partner has advised Triumph in this carve out and M&A project and has identified the acquirer. Over the next months we will accompany the transition to Hop Lun where appropriate. This shows our approach to not only advise on the transaction itself but also enhance the business’ value beforehand and assist in the ensuing integration.

Fabasoft seeks acquisitions with Consus Partner advising – executive

Fabasoft [FRA:FAA ] aims to make a deal a year in the next three years, co-founder, investor and board member Helmut Fallmann said. The company is advised by Joerg Mayer of Frankfurt-based M&A boutique Consus Partner, he added.

Headquartered in Austria and listed in Frankfurt, Fabasoft is a software manufacturer and cloud provider. In the year 2014/2015 (ended on March 31st) it reported EUR 27.6m revenues.
Fabasoft looks at different types of acquisition candidates, the executive said. It would be interested in consulting businesses for the public sector based in Brussels, the UK or in the Netherlands, he added.
To expand its Cloud business Fabasoft would acquire companies with applications/software solutions in the manufacturing, financial and pharmaceutical sectors, Fallmann said. The geographical focus for this division is the German speaking countries with a preference for the German region of Baden Wuerttemberg, he added.

Consulting firms focused on enterprise search, located in Germany Switzerland, Holland and UK could be of interest, the executive said. In this division, the company’s lead product is Mindbreeze InSpire.
The candidates should have revenues in the range of EUR 2m to EUR 7m, Fallmann said. Fabasoft aims to acquire the majority of the candidate and is interested in keeping the previous management/owner involved.
Talks with potential candidates are ongoing, Fallmann said. Ideally, he would like to make a first buy in the cloud business in Germany and in parallel a small acquisition in the UK of a consulting firm for the public sector, he said. The second step would be an acquisition in enterprise search, he added.

The Cloud and the Enterprise Search divisions are growing very fast but the largest revenue generator is now the Enterprise Records Management division, the executive said. The objective is to have the three divisions contributing equally to the total revenues in about two years‘ time, he added.

In the period 2000-2002, after its listing in 1999, Fabasoft made three acquisitions, one in Austria, one in Germany and one in the UK, the executive said. Since then, growth has been organic although the company has been looking to make buys, he said. High transaction prices and unwillingness of the previous owner to stay on board have been among the main reasons for the lack of deals, he said.
A transaction price based on 7x the current EBITDA is reasonable although the price expectations of the sellers are often much higher, the executive said.

Fallmann is now more confident of the possibility to make buys. He said that in recent years Fabasoft’s awareness of the market has increased significantly. Furthermore in the last months the company has been approached by companies looking for buyers and investors. For small businesses it is becoming increasingly difficult to remain independent and face the competition, he said.
Deals can be financed with a mix of sources including cash and share, the executive said. At the end of March, the company had liquidity of EUR 14.6m
Fabasoft’s products enable businesses to manage and store business documents securely, efficiently and uniformly, According to its website the company facilitates the digitalisation of business processes both on site and across companies and borders.
In 2014/2015 the company reported EUR 4.6m EBITDA. Among Fabasoft’s clients in the Enterprise Search division are Lufthansa [ETR:LHA] and Ikea, the executive said.
67% of the company is in the hands of the two founders, board member Leopold Bauernfeind and Fallmann himself, who are not looking to sell their stakes, according to Fallmann. The company has a market capitalization of approximately EUR 40m.
by Laura Larghi, Mergermarket

Cosmetics Company BCG Baden-Baden Cosmetics Sold to International Investors

BCG_englDYA Holding GmbH, Frankfurt / Main, Germany, a company managed by the DY Affluent Fund, Hong Kong, has acquired all shares in BCG Baden-Baden Cosmetics Group AG, a Baden-Baden, Germany-based producer and marketer of high-quality skin care cosmetics.

BCG Baden-Baden Cosmetics Group AG has a longstanding heritage in the German cosmetics industry owning well-known brands such as Sans Soucis, Biodroga and Dr. Scheller. After going into administration in 2010 the business was acquired by a group of private investors. By relaunching the traditional brands and acquiring the Dr. Scheller brand the company quickly returned to profitable growth and reestablished its position as one of the leading independent German producers of high-end cosmetics, selling its products in more than 60 countries.

Consus Partner acted as exclusive financial adviser to the sellers.

MIMOon GmbH sold to CommAgility Ltd

Tombstone MimoOnMIMOon GmbH, founded in 2006 out of a research project at University of Duisburg-Essen, is now one of the technologically leading developers of 4G/LTE mobile communications software for use in private and military networks. MIMOon provides software for both the handset (UE) and base station (eNodeB) sides. 

The company originally planned to play on the mass market field and consequently built up a larger organization. The reorganization to focus on private networks overstrained the company’s financial capacities. After filing for administration the company operated profitably on a smaller basis with approx. 30 employees.

By way of an asset deal the insolvency administrator of MIMOon GmbH, Dr. Andreas Röpke, sold all assets and the entire operations to CommAgility Ltd., Loughborough, UK. All employees have been taken over by the acquirer.

Consus Partner advised the administrator on matters of financial planning, preparation of documents, identification of the purchaser and took over responsibility for the project management and management of negotiations.