Highlights
- IKB has successfully advised Deutsche Beteiligungs AG (DBAG) on the acquisition of Silbitz Group in the context of an M&A auction process
- Basis for the successful collaboration were IKB‘s industry understanding as well as the long-standing client relationship with DBAG
- IKB was able to capitalize on its detailed market and company insights, to help DBAG uncover potential strengths and weaknesses of Silbitz Group through a comprehensive company analysis on site level
- Through its high competence and quick response times, IKB was able to decisively contribute to the evaluation of the potential transaction in the context of DBAG‘s portfolio
Silbitz Group – company overview
- Silbitz Group is a group of three jobbing foundries located in Silbitz, Zeitz (both DE) and Košice (SK), which specialize in small-, middle-, and large-scale production series, with individual piece weights of up to 45 t
- Relevant customer industries include power generation as well as drive, engine and rail technology, primarily in the DACH region and Scandinavia
- The company offers a highly integrated performance profile, comprising e.g. construction guidance, simulations, pattern and mold construction, heat treatment, mechanical processing, quality testing and logistics
- Silbitz Group produces both hand- and machine-molded castings, thereby capitalizing on its broad materials competence, ranging from nodular cast iron, over cast steel to high-grade cast steel
Employees: c. 860
Sales 2014: c. € 130 million
Customer
Company
Deutsche Beteiligungs AG
Sector
Private equity/investment company
Description
- Founded in 1965 and a stock-listed company, DBAG is among the leading German private equity firms
- DBAG primarily focusses on mid-sized, German companies from classical industrial sectors
- The types of investments range from majority acquisitions over minority stakes to growth financings
Total advised assets
c. € 1.2 billion (currently c. 20 portfolio companies)
Transaction overview
- On 14 July 2015, DBAG, together with its advised fund DBAG Fund VI, announced the acquisition of 100% of the share capital of Silbitz Group from VTC Industrieholding
- Subsequent to the transaction, Silbitz management co-invested in the context of a management buyout
- DBAG initially invested around € 9 million from its own balance sheet for a 18% stake, implying an equity value of € 50 million
- Including borrowed funds, total enterprise value amounts to c. € 70 million
- Despite another foundry asset in its portfolio, DBAG plans to develop Silbitz stand-alone going forward
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