3i realises €102 million from the sale of GEKA
3i Group plc (“3i”), and funds managed by 3i, today announced the sale of GEKA Holding GmbH (“GEKA”), to Sulzer Ltd.
3i Group plc (“3i”), and funds managed by 3i, today announced the sale of GEKA Holding GmbH (“GEKA”), to Sulzer Ltd, a Swiss company, specialising in pumping solutions, rotating equipment services, and separation and mixing technology.
Total proceeds of €178m to 3i and funds managed by 3i represent a 1.8x euro money multiple. Proceeds to 3i from today's transaction will be €102m, a c.54% increase on its March 2016 sterling value. Today’s proceeds are in addition to €23m received by 3i through a refinancing in 2015.
Founded in 1925 and headquartered in Bechhofen, Germany, GEKA is one of the world’s leading manufacturers of brushes, applicators and complete packaging systems for the cosmetics and pharmaceutical industries. The company is a pioneer in the innovation of plastic injection moulded brushes and is a development partner of market leading international cosmetics groups. GEKA employs c.900 staff globally.
3i and funds managed by 3i invested in GEKA in April 2012, acquiring a majority stake from private equity fund Halder. During 3i’s ownership, GEKA has grown through international expansion into Asia and Latin America. In 2015, GEKA opened a production facility in São Paolo, as well as sales and sourcing offices in Shanghai and Hong Kong. In addition, the company has successfully expanded its production capabilities in the US. With the acquisition of OEKA, a German manufacturer of plastics and metal components, in 2015, GEKA has strengthened its foothold in the attractive prestige market segment. Together with 3i, GEKA has developed a digital strategy using 3D-printing for fast proto-typing and specialised offerings for young, fast growing brands that are promoted via social media channels. Furthermore, with the launch of the GEKA Healthcare division in 2014, GEKA has leveraged its precise applicator know-how in the pharmaceutical space.
3i invested in GEKA’s growth and introduced a highly qualified Advisory Board with a strong international network. Chairman Yves Dominioni has been able to leverage his experience as a former private equity CEO and former CEO of Rexam Beauty and Pharma. 3i also introduced Non-Executive Directors Alain Chevassus, a distinguished entrepreneur in the packaging industry, and Günter Hauptmann, previously on the board of Siemens VDO who supported GEKA with his extensive operations and process experience.
Ulf von Haacke, 3i Managing Director and Head of Industrials, commented: “Since our investment in GEKA, the company has significantly improved its operating efficiency, expanded its international reach and broadened its offering – in particular with regard to decoration products, full-service supply and the expansion into the healthcare business. It was a pleasure to support GEKA on its growth path, and we are confident that GEKA has an exciting future ahead.”
Amaury de Menthière, CEO of GEKA, said: “GEKA has enjoyed exciting growth over the past years, and I would like to thank 3i for its value-adding partnership. 3i’s international expertise and network have been important factors in our successful expansion into new markets. We look forward to working with Sulzer for the next chapter in our development and believe that GEKA will benefit greatly from the opportunities in the healthcare market which our collaboration with Sulzer will bring.”
The transaction is subject to customary regulatory approvals.
For further information, contact:
3i Group plc
Tel: +44 20 7975 3021
Tel: +44 20 7975 3027
Notes to editors:
GEKA GmbH is one of the world’s leading manufacturers of brushes, applicators and complete packaging systems for the cosmetics and pharmaceutical industries. The corporate headquarters is located in Bechhofen, Germany. GEKA operates internationally and has manufacturing and sales branches in Europe, the United States, South America and Asia. In each of its three divisions − GEKA Beauty, GEKA Healthcare and GEKA Accessories − the company offers customers both customised and standard solutions. GEKA sets itself apart with a leading patent portfolio, specialist applicator and packaging product expertise and a steady stream of innovations. GEKA is a development partner for the leading global brands as well as high growth independent players. The company employs around 900 people worldwide. GEKA was founded in 1925. More information are available at www.geka-world.com.
About 3i Group
3i is an investment company with three complementary businesses, Private Equity, Infrastructure and Debt Management, specialising in core investment markets in Northern Europe and North America. For further information, please visit: www.3i.com
This transaction involved a recommendation of 3i Investments plc, advised by 3i Germany.