HgCapital sells Schenck Process to Industri Kapital
21st August 2007
Schenck Process is to embark on further expansion with the support of Industri Kapital following two years of successful growth under the stewardship of HgCapital. Industri Kapital has signed an agreement to acquire a majority stake in the company with HgCapital.
Since Schenck Process was acquired by HgCapital from Dürr AG in 2005, it has built an even stronger and strategically well-positioned business, growing the workforce to around 1,800 employees; increasing revenue to €350 million per annum; and expanding its international footprint organically and by acquisition. It was during HgCapital’s tenure that Schenck Process acquired Stock Equipment, a strategically important move into the coal power equipment sector that resulted in a further diversification of the group.
Today Schenck Process is one of the global market-leading providers of industrial weighing, feeding, screening and automation equipment and solutions. It benefits from a multitude of growth opportunities and a very robust and balanced business model. It has significant operations in Europe, North and South America, China and Australia and serves a diversified customer base across a wide range of industries, including Heavy, Light, Mining, Power and Transport Automation. As the only truly global company in the market coupled with a leading aftermarket service platform, Schenck Process is in a unique position to supply its broad blue chip customer base.
Detlef Dinsel, Partner Industri Kapital commented: “Schenck Process is the well-established, clear global market leader in the industrial process engineering solutions sector and enjoys a strong financial track record. Together with the management team, our intention is to continue to build on the company’s strong market position. We intend to continue its acquisition strategy as well as growing market share and expanding into new markets.”
Dr Jochen Weyrauch, President & CEO Schenck Process commented: “We welcome the investment by Industri Kapital with whom we share similar visions and business philosophies. We would like to thank HgCapital for a fruitful and constructive partnership over the past two years; it has provided valuable support during a crucial phase in the development of the company. Schenck Process has grown strongly through its ability to serve customers better than its competitors and the management team and employees can be justifiably proud of this success”.
Martin Block, Head of HgCapital Germany, said: “We have been delighted with our investment in Schenck Process. It has been a pleasure to work alongside and support such a dynamic management team and this shows what can be achieved by a partnership approach. We are proud to have supported the company as it has grown and developed over the past two years and I have every confidence that it will continue in a similar manner. We wish Industri Kapital and the management team every success for the future.”
HgCapital was advised by Greenhill and Clifford Chance. Industri Kapital was advised by Sal. Oppenheim, Lazard and Freshfields.
The transaction is subject to customary merger control approvals.
Detlef Dinsel, Partner
Tel: +49 40 369 8850
Charlotte Laveson, Communication Manager
Tel: + 46 8 678 95 51
Stewart D. Murdoch, Director Business Development and Marketing
Tel: +49 61 51 1531 2814
Dr Karsten Hartmann, Partner, HgCapital Munich
Tel: +49 89 25 54 95 517
Joachim Drees, Director, HgCapital London
Tel: +44 20 70 89 79 40
About the companies:
Industri Kapital is a European private equity firm with Nordic roots, managing close to
4 billion euros in fund commitments. Since 1989, Industri Kapital has acquired 64 European companies. The current portfolio encompasses 20 companies with a total turnover close to 8.6 billion euros. Industri Kapital invests mainly in mid-sized companies with strong cash flow and profit improvement potential, operating in mature industries with fundamental underlying growth. Current investments in Germany include Sport Group, Minimax and DYWIDAG-Systems International (DSI). Past investments include GARDENA. For further information: www.industrikapital.com
Schenck Process, headquartered in Darmstadt, Germany, is a global market leader of solutions in measuring and process technologies in industrial weighing, feeding, screening and automation. Schenck Process develops, manufactures and markets a full range of solutions, products and turnkey systems on the basis of combining process engineering expertise, reliable components and field-proven technology.
Schenck Process is organised along International Business Segments, namely:
Heavy: Cement, Gypsum, Sand & Gravel, Steel and NF Metals industries
Light: Chemicals, Food, Pharmaceuticals and Plastics industries
Mining: Mining industries
Power: Coal-Fired Power Plants and associated industries
Transport Automation: Logistical processes – road and rail
Employing over 1,800 staff, Schenck Process has activities in more than 40 countries and operates 14 state-of-the art assembly facilities globally. For further information: www.schenckprocess.com
HgCapital is a private-equity investor in the European mid-market. We focus on investments with an enterprise value in the range of €50-500 million. Our business model combines sector specialisation with dedicated, pro-active support to our portfolio companies as well as the corresponding management expertise across all phases of the investment process.HgCapital manages more than €2.7 billion for some of the world’s most respected institutional and private investors. Our goal is to achieve outstanding results for our investors, management team and intermediaries.
Further information on HgCapital can be found at www.hgcapital.com