Auctus makes 18 times money on Time Partner sale

Auctus Management, a German mid-cap private equity manager, has generated more than €100m and an 18 times money multiple on the €250m sale of Time Partner, a temporary staffing business, to Investcorp.

Auctus Management, a German mid-market private equity firm, has sold its majority stake in Time Partner, a temporary employment agency, to Investcorp, a Bahrain-based alternative asset manager, in a €250 million ($320 million) transaction.
 
Nicolas Himmelmann, partner at Auctus Management, said that the sale generated proceeds of more than €100 million and an eighteen times money multiple. The firm reinvested some of the proceeds in Time Partner for a minority stake in the business.
 
Auctus Management paid approximately €16 million to acquire a majority stake in Delta-Time Control in August 2004 with debt provided by HSH Nordbank. The firm then renamed the business Time Partner and carried out a buy-and-build strategy, making nine add-on acquisitions. “We provided funds for the first follow-on acquisition but they were predominantly acquired through the cash flow of what is a profitable group,” said Himmelmann.
 
Time Partner, based in Nuremberg, Germany, has 5,000 employees operating out of 50 offices in Germany. The company has a specific focus on temporary staffing in the aviation and logistics sectors. According to Auctus Management, Time Partner has increased its turnover tenfold to approximately €200 million in the last two years.
 
Thilo Sautter, head of Investcorp’s German private equity business said that Time Partners is well placed to take advantage of growth in the German recruitment market: “The market for qualified personnel in Germany is one characterised by above average momentum.”
 
Himmelmann said that Auctus Management had not planned the sale of Time Partner until Investcorp made an approach regarding the business: “They approached us with an offer we couldn’t refuse. However, we are committed to this industry, which is why we reinvested a portion of the proceeds for a minority stake. It’s a limited amount in terms of the total proceeds, but a large amount in terms of our normal investments.”
 
Auctus Management, based in Munich, typically makes investments of €10 million to €40 million for minority and majority stakes in mid-sized companies with sales revenues between €25 million and €150 million.