3i to invest €181m in Schlemmer
3i Group plc (“3i”) has agreed to invest €181m in Schlemmer, a global leader in cable management solutions for the automotive industry.
3i Group plc (“3i”), the international investment manager, has agreed to invest €181m in Schlemmer, a global leader in cable management solutions for the automotive industry. The management team will also hold a significant equity stake. The business is being purchased from German private equity firm Hannover Finanz and the Mackprang Holding. The parties have agreed to keep the purchase price confidential.
Founded in 1954 and headquartered in Poing, close to Munich, Schlemmer develops and produces cable protection for automotive and industrial applications. The group employs 2,500 people globally, and generated gross sales of €220.2m in 2015 (including 50 percent of the sales generated by the joint venture in China).
Over the past 20 years, Schlemmer has successfully grown internationally, which is reflected in a double digit annual revenue growth rate. The company has built long-standing relationships with European and Northern American as well as Japanese and Chinese Tier 1 Suppliers and Original Equipment Manufacturers (OEM). Schlemmer offers a well-diversified product portfolio and operates a global manufacturing network of 23 plants in 14 countries. It is well-positioned to continue its growth path, particularly as its cable management segment is set to benefit from megatrends in the automotive industry such as connectivity, e-mobility, autonomous driving and safety.
Schlemmer is led by an experienced management team who have shaped the business over the past decade. Bernd Gottschalk, former management board member of Daimler and former President of the German automotive industry association VDA, will join the board as Chairman. In addition, Günter Hauptmann will join the board as Non-Executive Director. As a former management board member of Siemens VDO and member of the advisory board of Norma Group, he is very familiar with the specific growth drivers for Schlemmer and the general trends in the automotive industry.
Ulf von Haacke, Managing Director, Germany at 3i commented:
“We are investing in a very successful company with strong relationships with blue chip customers. Schlemmer has high growth potential thanks to the underlying growth drivers and the ability to serve customers globally. We will support Schlemmer’s management team to build on the company’s strength in Europe and Asia and to further develop its global footprint by strengthening its presence in the US market.”
Josef Minster, CEO of Schlemmer, said:
“We are delighted to be partnering with 3i for the next stage in our global growth story. During the past four years, Schlemmer developed very well under the ownership of Hannover Finanz and the Mackprang Holding. I’m convinced that in future, Schlemmer will greatly benefit from 3i’s deep experience and strong track record in the automotive industry, as well as from its international network.”
Bernd Gottschalk, designated Chairman of the advisory board of Schlemmer, commented: “Schlemmer enjoys an excellent reputation with OEMs not only in Europe but worldwide as it builds on first-class products as well as strong growth drivers. I’m excited about the opportunity to support Schlemmer on its growth track."
The transaction is subject to customary regulatory approvals.
For further information, contact:
3i Group plc
Interim Communications Director
Tel: +44 20 7975 3032
Notes to editors:
About 3i Group
3i is a leading international investment manager focused on mid-market private equity, infrastructure and debt management across Europe, Asia and North America. For further information, please visit: www.3i.com.
The Schlemmer Group, with a workforce of over 2,500 around the world, generated gross sales of €220.2m in 2015 (including 50 percent of the sales generated by the joint venture in China). All in all, Schlemmer operates 23 stationary manufacturing sites in 14 countries worldwide and one mobile production facility. The company develops, manufactures and sells its portfolio of cable protection systems for automotive and industrial applications at more than 60 locations. Other business segments include connection systems with gland technology, mechatronics systems with probes and sensors as well as air and fluid systems with conveying lines, and electrical installation systems with device and connection sockets.
This transaction involved a recommendation of 3i Investments plc, advised by 3i Germany.