3i invests in GIF, the leading specialist in transmission testing
3i Group plc (“3i”), an international investor, has agreed to invest in Gesellschaft für Industrieforschung mbH (“GIF” or “the company”), a leading international specialist in transmission testing, alongside co-founder and Chairman of the Management Board Ulrich Rohs who will remain a shareholder in the company. 3i is investing €77 million (£66 million) and the enterprise value of the transaction is approximately €100 million, which represents a multiple of 7x EBITDA.
Established in 1986, GIF is a significant development partner for the automotive original equipment manufacturers (“OEMs”). It is the world’s largest external transmission test rig operator and differentiates itself through testing knowledge, flexibility, technology and its asset base. GIF has 430 employees and is headquartered in Alsdorf, Germany with additional operations in China, Japan and North America. The company offers a cost efficient alternative to in-house durability testing for automotive OEMs and transmission suppliers. Customers include virtually all the leading OEMs and transmission manufacturers.
GIF has demonstrated solid growth since its establishment, with the recent internationalisation of the company delivering further growth. Over the last ten years, sales have grown at a double-digit CAGR.
The global transmission testing market, which GIF serves, is projected to grow at 6.6% CAGR until 2018, partly driven by tightening emissions regulations and the need for better fuel economy. Significant growth is also expected in China due to the increasing number of newly registered vehicles and the expansion of different powertrain platforms.
In partnership with management, 3i will support the company in building a global specialist for tests on transmissions, axles and brakes for the automotive industry, offering automotive OEMs even more extensive options to outsource durability testing. In addition, 3i will use its international network to accelerate the company’s growth in Europe, China and North America.
Simon Borrows, 3i Chief Executive commented: “We are delighted to be investing in GIF, a leading German Mittelstand company with a strong international footprint which operates across two sectors where we have extensive experience and a strong track record; testing and inspection and automotive.”
Ulf von Haacke, 3i Managing Director, commented: “We are proud to be investing in GIF. The company has a fantastic reputation amongst the OEMs and transmission manufacturers. With our international network and extensive experience in the testing and inspection and automotive sectors, we are looking forward to supporting the management in further accelerating the company’s growth in the coming years.”
Ulrich Rohs, Founder and Co-Managing Director, commented: “I am looking forward to the partnership with 3i. Our aim is to further develop the business with improved capital resources and to accelerate the process of internationalisation. 3i is the right partner to help us achieve this.”
For further information, contact:
3i Group plc
Kathryn van der Kroft
Tel: +44 20 7975 3021
Notes to editors:
About 3i Group
3i is a leading international investor focused on mid-market private equity, infrastructure and debt management across Europe, Asia and the Americas. For further information, please visit: www.3i.com.
GIF has 430 employees and is headquartered in Alsdorf, Germany. With its 120 test rigs, the company is a significant development partner for the automotive original equipment manufacturers (“OEMs”) and the world’s largest external transmission test rig operator. The company offers a cost efficient alternative to in-house durability testing for automotive OEMs and transmission manufacturers. Customers include virtually all the leading OEMs and transmission manufacturers.