Portfolio
Daalderop
| Sector | Industrials |
|---|---|
| Investment type | Buyouts |
| Region | Benelux |
| Status | Former investment |
Nature of Business
Daalderop is the market leader in the the Dutch water heater market, with a specific focus in domestic energy-efficient boilers. The company develops and manufactures its products from a state-of-the-art production facility in Tiel, The Netherlands.
Daalderop’s main customer base is within the Benelux region where it has been an established market-leader for many years, however it has seen successful expansion into European markets, including the UK, Belgium and Germany.
Investment Overview
3i has a strong track record in the General Industrial sector within the Benelux region and invested in Daalderop in July 2005 in a €55m deal. The company had shown impressive consistent year-on-year growth and was well positioned for further international growth and product diversification.
We worked closely with the management team to focus on improving Daalderop’s market share through its successful EDI (Daalderop Certified Installer) programme. We also advised on switching from OEM manufacturing to focus solely on Daalderop-branded central heating boilers, resulting in record sales for the company.
Through our Active Partnership approach we advised management on organisational change, driving a review of the international sales and distribution channels, and introduced both a new Marketing Director and Chairman.
As a result of this review, Daalderop identified a new sales channel of housing co-operatives, a key element of the Dutch housing market, with a requirement for ‘green’ highly energy-efficient domestic boilers and heating products.
In late 2009, despite difficult market conditions, Daalderop stood out as a clear leader within its sector and after several approaches by trade and private-equity buyers, we sold our stake and realised our investment.
