LONDON (UK) - Cognetas, a leading mid-market private equity firm specialising in complex deals, today announces the purchase of Gebrüder Gienanth-Eisenberg GmbH (“Gienanth”) from Fink Holding, a family holding company. The transaction is expected to be completed in early 2008 subject to merger clearance being granted by the relevant authorities.
Gienanth, which originated in 1735 and is today headquartered in Eisenberg, Germany, is the world’s leading producer of engine blocks for medium to large diesel and gas engines and of compacted graphite iron products for use in clutch and transmission systems in the automotive industry. It’s engine blocks are used in power generation, in large-scale mining equipment and other off-road applications, in oil and gas exploration and pipelines, and in the marine shipping and rail locomotive industries. The Company’s clutch and transmission products are used chiefly in passenger vehicles and tractors. A long-established industry player with 900 employees, Gienanth numbers among its clients such prestigious German and international names as LuK, Cummins, Tognum (formerly MTU Friedrichshafen), General Electric, Daimler, MAN, and Deutz Power Systems. Gienanth had revenues of approximately €150 million in 2007.
Cognetas has a strong track record of investment in leading niche companies in the industrial and automotive industries. Current examples of similar companies in Cognetas’s portfolio are KSM Castings (formerly ThyssenKrupp Fahrzeugguss), acquired at the end of 2004, a leading supplier of aluminium and magnesium products for the automotive industry, and ixetic (formerly LuK Fahrzeughydraulik), acquired at the end of 2005, an internationally leading producer of hydraulic and vacuum pumps and also an automotive industry supplier.
Commenting on the acquisition, Cognetas Partner Michael Boltz noted: “We are delighted to be backing such an experienced management team and a company which is strategically well positioned in highly specialised and growing industry segments. We look forward to working with management to identify opportunities internationally and build the business to deliver strong growth.”
Dr. Julius Veit, Managing Director of Gienanth, added: “We are delighted to have found, in Cognetas, a long-term investor with sector-specific experience, whose international expertise will significantly enhance our abilities to tap further growth markets.”