PDPE materially guarantees capital increase of First Sensor AG over € 33 million30 September 2011
Parcom Deutsche Private Equity materially guarantees capital increase of First Sensor AG over € 33 million
• PIPE transaction facilitates acquisition of sensor division from Augusta Technologie AG
• Merger creates one of the world’s largest suppliers of specialty sensor solutions with above average growth prospects
The fund Parcom Deutschland I advised by DPE Deutsche Private Equity GmbH (“DPE”) significantly guarantees the capital increase of First Sensor AG, Berlin, (formerly Silicon Sensor AG) in the amount of € 33.12 million, thus guaranteeing the success of the capital measure. With this capital injection, First Sensor AG is able to pursue its defined growth strategy and finance the acquisition of Sensortechnics Group, the sensor technology business of publicly listed Augusta Technologie AG, Munich. As a result of this PIPE transaction (Private Investment in Public Equity), PDPE will become an important anchor investor of the combined group, listed in the Prime Standard [WKN: 720190 Ι ISIN DE0007201907 Ι SIS], and provide long-term support for further growth of First Sensor AG.
Today, the relevant boards of First Sensor AG have resolved a capital increase from the authorized capital against cash contributions with subscription rights of the existing shareholders comprising 3.312 million new shares at a price of € 10 per share. The subscription period will likely begin on October 7 and end on October 21, 2011. In addition to the capital increase, the acquisition of Sensortechnics Group will be financed through a long-term credit facility provided by Commerzbank and Deutsche Bank. The purchase price of a mid-double-digit million Euro amount is payable in several tranches, some of which are performance-related.
With the acquisition of Sensortechnics Group, First Sensor AG significantly strengthens its market position, in particularly in the area of life sciences. Following several expansion steps over recent years in the areas of mobility, industrial and security, the transaction will help First Sensor AG to distinctly widen its lead over the competition. Both companies have already worked together in close cooperation on a number of joint projects in the past. Sensortechnics Group will contribute more than € 60 million to the sales of First Sensor AG, more than doubling Group sales in the coming year. With anticipated total revenues of around € 115 million and more than 750 employees in 2012, First Sensor AG will become one of the leading developers and manufacturers of high-end sensor technology solutions worldwide.
Marc Thiery, Managing Partner PDPE, commented on the industrial logic behind the new investment: “We made a very conscientious decision in favor of an investment in this highly specialized technology company. First Sensor AG has an experienced management and has not only been very successful, highly profitable and extremely innovative for many years, but is also exceptionally well positioned in its respective markets.” “In addition to its strong market position, Sensortechnics Group prides itself with a large international sales force. The complementary nature of the two companies will instantly create one of the largest suppliers of highly specialized sensor technology solutions worldwide”, adds Guido Prehn, director at PDPE.
Dr. Hans-Georg Giering, CEO First Sensor AG, welcomes the investment of an industrially-focused financial investor: “Together with our new major shareholder DPE, we look forward to a very promising future characterized by growth. PDPE’s long-term financial commitment lays the foundations for the further successful development of the company.”
Above average growth opportunities for newly created supplier of specialized sensor technology solutions
First Sensor AG is a leading supplier of highly customized, high-precision sensor solutions. For more than 20 years, the company has been developing and manufacturing individual sensor technology solutions for the highest demands in precision and durability for well-known industrial companies and research institutes worldwide. First Sensor AG possesses innovative and integrated know-how in optoelectronics and MEMS sensors technology, micro systems technology and hybrid electronics and has developed a particular competence in industrial and medical applications, aerospace, mobility applications and in security technology.
Through Sensortechnics Group, Augusta Technologie AG provides customized sensor solutions and micro systems technology as well as mobile measuring systems for customers mainly active in the life-science/medical sectors and the industrial and aerospace sectors. In the past, Sensortechnics Group acted as an independent, highly profitable sub-holding under the umbrella of Augusta Technologie AG.
In the past two decades, First Sensor AG has been transformed into an integrated industrial group developing sensor technology solutions for a broad number of industries along the entire product value creation chain. The transaction further strengthens First Sensor AG’s expertise in the areas of MEMS sensors as well as its distribution capabilities and application know-how. The Group’s high-tech products are for example critical for flight control systems, x-ray equipment, stabilization systems for drilling platforms, buildings and container ships, among others.
PDPE was advised in the transaction by investment bank equinet Bank AG (Lutz Weiler, Arne Laarveld) as well as law firm Norton Rose (Dr. Frank Regelin). Responsible for the transaction at PDPE are Marc Thiery, Volker Hichert and Guido Prehn.
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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 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 First Sensor
First Sensor AG is a leading supplier of custom sensor solutions for highly sophisticated requirements in the Life Science, Industrial, Mobility, Security and Aerospace sectors. In 2010 First Sensor achieved annual sales of EUR 45.2 million, employing more than 400 people worldwide. Founded 1991 in Berlin, Germany, First Sensor has been listed on the Frankfurt Stock Exchange since 1999 [Prime Standard Ι WKN: 720190 Ι ISIN DE0007201907 Ι SIS].
The Sensortechnics Group specializes in the development and distribution of high-quality sensor solutions, including in the medical engineering sector. Furthermore, Sensortechnics GmbH owns Elbau GmbH, developer and manufacturer of sensor modules, and Klay B.V., which specializes in industrial solutions.