Listed German mid-market private equity firm Deutsche Beteiligungs (DBAG) has agreed to acquire a 20 percent stake in Oechsler AG, a plastics engineering business focusing on the automotive suppliers industry.
According to a statement from the firm, DBAG will hold 8.4 percent of the shares in Oechsler, and the DBAG Expansion Capital Fund, a 2010-vintage €242 million vehicle, will hold 11.6 percent. They will be acquiring shares that have been in the hands of two other financial investors for more than 10 years. The remaining 80 percent interest will continue to be held by the family owners.
The deal, which is expected to be completed in the first quarter of this year, will see DBAG and the DBAG Expansion Capital Fund invest up to €27 million, of which €11.3 million is attributable to DBAG’s shares.
The investment in Oechsler is the expansion capital fund’s fourth investment. Other investments in the fund include Plant Systems & Services PSS, and two broadband providers, DNS:NET Internet Services and inexio Informationstechnologie und Telekommunikation KGaA.
Oechsler, which is now in its sixth generation of family ownership, manufactures injection-moulded precision parts and electromechanical components, such as electronic parking brakes, housing components for remote keys and headlight modules for cars.
Around 80 percent of the company’s revenue comes from automotive suppliers. Around 5 percent comes from the manufacture of precision components for medical devices, and 15 percent comes from the manufacture of components for other sectors, such as high-tech sole elements for sports shoe manufacturers and visors for firemen’s helmets.
Oechsler’s revenues doubled between 2009 and 2013 from €117 million to €250 million. Today the company employs around 2,200 people at five production sites in Europe, Asia and North America, with 1,290 of its staff working in Germany at its headquarters in Ansbach and at Weissenburg.
According to the statement, DBAG will support the company in its expansion of international activities.
DBAG has invested in 13 automotive suppliers since 1990, according to the firm. Last year DBAG exited its longest-held investment, automotive dealership Dr. Vogler, which had been in the firm’s portfolio for 39 years.