Parcom Deutsche Private Equity market leader
10 January 2011Parcom Deutsche Private Equity acquires market leader Westfalia-Automotive
- Growth through further geographical expansion and additions to the product portfolio
- Focus on further development of the company’s market-leading position and pursuing an active role in the consolidation of the industry
Rheda-Wiedenbrück/Munich, January 10, 2011 --- Funds advised by DPE Deutsche Private Equity GmbH („DPE“) invest in the dynamically growing market for car accessories. DPE has agreed to acquire all shares of Westfalia-Automotive Holding GmbH, based in Rheda-Wiedenbrück, from Odewald & Compagnie and other shareholders including WestLB. The long-established company is one of the worldwide leading producers of towbars and carrier systems supplying numerous car makers. It also provides groundbreaking transportation solutions. Jens Waldau will remain Chairman of the Management Board. Together with the management, he will reinvest in the company after the closing of the transaction.
Munich-based DPE is an investor specializing in the long-term growth funding of medium-sized companies in German-speaking countries. DPE intends to support the planned expansion of Westfalia- Automotive and to fund the respective capital requirements. The parties involved agreed not to disclose the purchase price of the transaction which is subject to approval of the antitrust authorities.
With almost 800 employees and more than 1,000 products for over 750 different car models, Westfalia- Automotive managed to continue to grow also in the past fiscal year (per September 30, 2010). Sales grew by 5.3 percent to € 142 million. Due to the consumers’ increasing affinity to leisure activities, the interest in Westfalia-Automotive’s innovative and security-oriented products is expected to grow significantly in the coming years. The company is confident to sustainably improve sales in the future. In the current fiscal year, the company aims at an additional sales growth of about ten per cent.
As a technology and market leader, Westfalia-Automotive wants to further strengthen its solid market position and foster it through further acquisitions with the help of DPE’s financial power and under the leadership of its accomplished management. The firm will focus on the accelerated market rollout of towbar-based carrier systems and alternative transportation solutions. Furthermore, Westfalia- Automotive will concentrate on consistently developing its geographical presence, for example in Italy, Great Britain, Ireland and in Eastern and Southern Europe, as well as expanding into important non- European markets. Additionally, it will advance the development of its market position in France and Scandinavia – the market entry took place with the takeovers of the subsidiaries SIARR and Monoflex. In connection with the defined M&A strategy, synergy effects are to be expected especially in the areas of marketing, distribution and production. In view of its excellent positioning, Westfalia-Automotive expects to be able to grow stronger than its competitors during the current market recovery.
“Westfalia-Automotive has established itself as the European market leader for towbars in a strongly growing market. We believe that especially the wide product range of towbar systems and other transport solutions, like carrier racks for bicycles etc., is particularly promising,” emphasizes Volker Hichert, Managing Partner of DPE. “With our investment, we want to sustainably promote the innovative strength of Westfalia-Automotive and play an important role in the consolidation of the industry all over Europe. Together with the successful management team headed by Chairman Jens Waldau we want to execute a long-term strategy for the expansion beyond the European borders,” stresses Hichert. “We look forward to supporting such an excellent management team and successful company.”
Jens Waldau, Managing Director of Westfalia Automotive, also sees new opportunities for the company through DPE’s investment: „During the sales process, DPE’s team has shown comprehensive insight into our market. Together with our new majority owner, we are now looking forward to tapping new growth drivers and to further develop our successful business strategy. We are convinced to have found a suitable partner in DPE which does not only understand our company, but will also support it in reaching a new dimension.”
The acquisition of Westfalia-Automotive is DPE’s second investment within a few months. At the end of December, the investor published the establishment of DID Industriedienstleistungen Holding GmbH (DID Holding), a temporary staffing provider for qualified human resources services, based in Düsseldorf. At the same time, it announced its first add-on acquisition by buying Sonesto GmbH, based in Oldenburg. Sonesto was established in 1999 and operated under the name Pensum Gesellschaft für Personaldienstleistungen mbH. The objective is to create one of the ten leading German temporary staffing companies for highly qualified staff in the mid-term through organic growth as well as a targeted buy-and-build strategy.
*** About DPE Deutsche Private Equity GmbH Funds advised by DPE Deutsche Private Equity GmbH provide growth capital to companies in sectors with long-term fundamental growth prospects. DPE is an independent German private equity firm, which was launched by Marc Thiery and Volker Hichert in December 2007 with the backing of Parcom Capital, a pan-European investment subsidiary of the Dutch ING Group. Parcom Capital has over €1bn under management and invested in over 250 companies.
The fund currently advised by DPE Deutsche Private Equity GmbH (Parcom Deutschland I GmbH & Co. KG) has an initial committed capital of €250m and targets €5-50m equity investments in German, Swiss and Austrian middle-market companies with enterprise values of €10-150m in the following sectors: business services, education, healthcare, industrial technology and alternative energy/environment. As an active partner of management teams, DPE aims to develop companies over longer holding periods (5-10+ years) through organic and external growth.
For more information on DPE please visit www.pdpe.com.
About Westfalia-Automotive Holding GmbH Westfalia-Automotive, based in Rheda-Wiedenbrück, is one of the worldwide leading producers of towbar devices and carrier systems as well as a provider of groundbreaking towbar-based transportation solutions for more than 750 car models. Westfalia-Automotive develops and produces about 1,700 towbar types for almost all vehicle brands. The production comprises about 1 million towbar devices a year and over 200,000 cable sets and control units. Besides the main factory in Wiedenbrück, Westfalia-Automotive owns the French production company SIARR and the Swedish firm Monoflex. With about 800 employees, Westfalia-Automotive achieved sales of around €140m in the past fiscal year. The automotive supplier was established in 1844 and invented the first ball hitch in 1932.
For more information please visit www.westfalia-automotive.de
