Parcom Deutsche Private Equity buys majority of EAB group for electrical installations and services
26 September 2011
• Aims to continue strong growth path
• Active role in industry consolidation through buy & build strategy
The fund Parcom Deutschland I advised by DPE Deutsche Private Equity GmbH (“DPE“) invests in the growing market for electrical installations and services by acquiring the majority of EAB, a family-run group of companies, from the Eberlein family. Lars Eberlein will remain Chief Executive Officer (CEO) and will continue to be a shareholder. Munich-based PDPE is an investor specializing in long-term growth funding of medium-sized companies in the German-speaking region. The parties agreed not to disclose the purchase price of the transaction.
EAB group comprises EAB Elektroanlagenbau GmbH Rhein/Main with offices in Neu-Isenburg/Zeppelinheim, Maintal-Dörnigheim and Darmstadt and D-I-E Elektro AG with headquarters in Jena and offices in Hamburg, Berlin, Naumburg, Gera and Munich. The group offers a broad range of technical services including building and industrial installations, security technology, building automation, energy management and consulting, communication technology, engineering services and operations management.
The company’s roots date back to 1921 when Eberlein Elektrotechnik was founded in Schwalmstadt. Over the last ten years, the company has consistently outgrown the market and developed to become a leading provider of electrical services across Germany. This year, with c.500 employees the company is expected to generate approximately € 60 million in total output. Together with its new majority shareholder, management will continue a strategy of growth. In particular, EAB will seek to play an active role in the ongoing consolidation of the fragmented industry.
Dynamic growth partly driven by regulation for higher energy efficiency in buildings
EU regulation for enhanced energy efficiency in buildings and the 2009 Energy Savings Act (EnEV), requiring energy performance certificates of all private and public buildings, are key drivers for growing demand in the industry. Further drivers include the rising demand for security systems, an increasing volume of solar installations and the ongoing need for modernization of electrical fittings.
”EAB has a strong position in a market with very attractive growth potential”, emphasizes Volker Hichert, Managing Partner of PDPE. “With PDPE’s support, the group will continue its growth strategy across Germany”. “Together with the successful management led by Lars Eberlein, we will continue expanding the business and look for further consolidation opportunities in the sector”, adds Guido Prehn, Director at PDPE.
Lars Eberlein (CEO) shares the view that the backing by PDPE will open up new opportunities for the company: “As a non-cyclical business that performed robustly even in economically difficult times, we want to take advantage of the existing market opportunities and together with our new shareholder further optimize our product offering for the benefit of our customers. We are very happy to have found PDPE as an ideal strategic partner for the further development of our company.”
The acquisition of EAB is PDPE’s third investment within one year. In January, the investor announced the takeover of Westfalia Automotive, one of the world’s leading producers of coupling devices and carrier systems for numerous car makers. In December 2010, DPE announced the foundation of DID Industriedienstleistungen Holding GmbH (“DID Holding”), a personnel service provider for qualified human resource services, in combination with the simultaneous purchase of Sonesto GmbH.
Volker Hichert and Guido Prehn led the transaction at PDPE.
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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 currently manages more than one billion Euros of capital and has invested in more than 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 http://www.pdpe.com
About EAB group
EAB Group comprises EAB Elektroanlagenbau GmbH Rhein/Main with offices in Neu-Isenburg/Zeppelinheim, Maintal-Dörnigheim and Darmstadt and D-I-E Elektro AG with headquarters in Jena and offices in Hamburg, Berlin, Naumburg, Gera and Munich. The group offers a broad range of technical services including building and industrial installations, security technology, building automation, energy management and consulting, communication technology, engineering services and operations management. The company’s roots date back to 1921 when Eberlein Elektrotechnik was founded in Schwalmstadt.
For further information please visit http://www.eab-rhein-main.de or www.die-eag.com
