Taros and 3i divest German automotive supplier Novem

02 Jun 2008

Private equity investors Taros Capital, the manager of selected private equity funds of AlpInvest Group, and 3i, have divested German automotive supplier Novem Group to Barclays Private Equity for an undisclosed sum.

Bavaria-based Novem supplies premium automotive brands with component parts made of decorative wood, aluminium and carbon for use in car interiors. Novem is the global market leader for fine wood decorative components with a market share of 45 per cent.

Taros and 3i backed Novem in a secondary buyout from CVC and GS Capital Partners in 2004. During the investment period, they worked with Novem’s management to develop and implement a comprehensive programme to optimise production processes and enhance Novem’s market position. Annual revenues increased from around € 200 million in 2004 to nearly € 300 million in the last financial year, a rise of almost 50 per cent, while its number of employees has risen from 2,750 to 3,700 in the same time period. 

Moreover, the business has significantly strengthened its global presence by expanding its production site located in Pilzen, Czech Republic, and entering the Asian market with the establishment of a plant in Langfang, China.

Christian M. Bächle, Managing Partner of Taros Capital, commented on the transaction: “We are very proud to have been able to successfully grow Novem’s leading global market position. Novem is now excellently equipped for its change in ownership and very well positioned for its future development.”

3i Director John Jessen added: “Novem is a very good example of how a clear growth strategy and an excellent management team can turn a company into a success story. We see ourselves as an investor working in active partnership with our portfolio companies and as such are delighted to have contributed to Novem having become as strong as it is today.  We wish the business all the best for its future growth.”

The vendors were advised by Linklaters (Legal: Uli Wolff, Christian Kleeberg, Fabian Liepe), CMS (Legal: Alexander Ballmann), Ernst & Young (Financial due diligence: Stefan Ostheim, Martina Kroener) and SJ Berwin (Tax: Gerald Thomas) in the transaction.

 

Notes to editors

About Taros Capital
Taros Capital is a manager of selected private equity funds of Amsterdam based AlpInvest Group, one of the world’s largest private equity investors. Taros operates in Germany and in the Benelux countries. The funds managed by Taros focus on majority investments in mid-sized, market-leading companies.  For more information, please visit: www.taroscapital.com.  

About Novem
Novem is a global supplier of high-quality decorative components and functional elements for vehicle interiors. The company, with headquarters in Vorbach/Upper Palatinate in Bavaria, is the world’s number one source for fine wood decorative components. As well as processing fine woods, Novem also works on innovative plastic and metal engineering, making the company an excellent system supplier. Our customers include all renowned automotive manufacturers. Novem currently employs approx. 3,700 staff in nine locations in Germany, Italy, Slovenia, Czech Republic, China, USA and Honduras. For more information, please visit www.novem.de

 

About 3i

3i is a world leader in private equity.  We focus on Buyouts, Growth Capital, Infrastructure and Quoted Private Equity (“QPE”) and invest across Europe, the United States and Asia.  Our competitive advantage comes from our international network and the strength and breadth of our business relationships.  These underpin the value that we deliver to our portfolio and to our shareholders.