3i sells its shareholding in Wendt to Winterthur Technologie AG, the Swiss provider of complex abrasive technology
At the cutting edge
Wendt's super-abrasive tools and machines grind high precision parts for high-performance industrial applications. Working with 3i, Wendt implemented a 10-point plan for rapid growth and established a factory in China.
High performance engineering
As the leading super-abrasive grinding specialist in Germany's Mittelstand, Wendt has a premium client list that includes appliance manufacturers Bosch and industrial group Sandvik. Wendt's solutions help to make a wide variety of products, ranging from aircraft and cutting tools to replacement hips. At the heart of Wendt's business is the German automotive industry with firms such as Daimler AG using Wendt's tools to engineer the increasingly complex parts found in luxury cars.
A 10 point plan for growth
In March 2005, 3i acquired a majority shareholding in Wendt in a deal that valued the business at €86m and supported a management buyout led by the company's respected CEO, Norbert Lamers. To augment the incumbent management team, 3i introduced Industrialist in Residence Walter Münnich as Chairman. Walter's deep experience in the German industrial sector includes leadership roles at Flender and Elexis. 3i also introduced Markus Dreihues as Wendt's first fully-fledged CEO, to achieve a step change in financial reporting systems.
At the outset of the new partnership, 3i worked closely with the management team to develop a 10-point growth strategy. Peter Wirtz explains: "Wendt needed a challenging plan to help it fulfil its huge potential and the management group came up with a range of measures to put growth on a strong upward trajectory. The 10-point plan was the foundation for a wave of activity that saw Wendt introduce new products, work with new industry sectors and accelerate the pace of international expansion."
Supporting international expansion
3i's global network made a key contribution to Wendt's rapid progress. One of the management team's first priorities was to restructure Wendt's operations in Spain. 3i's Madrid team advised on the restructuring and helped Wendt source local advisers. In the US, 3i took part in appointing a new President for the company's American operations, which represent 20% of turnover.
Norbert Lamers found 3i's support particularly helpful during a week long visit to China, as Wendt prepared to establish a local manufacturing capability. "People from 3i's offices in Hong Kong and Shanghai introduced us to experienced operators who'd already set up factories locally. They also helped us locate premises and identify advisers who could assist with legal, tax and recruitment issues. Accelerating our expansion in China is a key part of our strategy and 3i's practical hands-on support enabled us to move much more swiftly than we'd anticipated."
A complementary partnership
The fresh sense of energy that accompanied the buyout was quickly reflected in Wendt's business and financial performance. Between 2004 and 2006, sales rose 27% to €119m, EBITDA climbed 69% to €20.4m whilst the workforce grew by over 100 to approximately 1,000 employees. Wendt's excellent performance attracted keen interest and in June 2007 3i announced it had agreed to sell its shareholding to Winterthur Technologie AG in a deal that valued Wendt at €153m