Private Equity News & Analysis

Buchanan-backed yacht company starts buy-and-build

The German mid-market firm Buchanan’s investment in yacht company Dehler has allowed the company to bolt on ETAP Yachting. The company sought private equity backing to service its large order book.

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Yacht company Dehler, backed by mid-market buyout firm Buchanan Capital Partners, has bought ETAP Yachting for an undisclosed sum.

Dehler: large
order book

This is the first bolt-on investment since Buchanan, which invests in the German speaking countries, took a minority stake in Dehler for an undisclosed sum in November.

“Our investment is pure equity. Why put debt on a company that needs cash to grow?” Buchanan managing director Peter Blumenwitz said.

“Dehler’s in the comfortable position where it needed cash to grow by building new and larger production facilities because it has a far larger order book than it could possibly service with [existing plant].”

Buchanan expects its final closing on its first fund in June on around €100 million ($145 million) this year. The firm had a final close at the end of last year on €70 million, he said. The firm has been fundraising since May 2006, when it was looking to raise €150 million.