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Foundry Corporate News

24. November 2015

Case study: Acquisition of Silbitz Group

Case study: Acquisition of Silbitz Group


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


Company Info

Silbitz Group GmbH

Dr.-Maruschky-Str. 2
07613 Silbitz

Phone: +49 36693 80-0
Fax: +49 36693 80-255

E-Mail:info@silbitz-group.com

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