DBAG buys into Austrian industrial company(2)

German buyout firm Deutsche Beteiligungs has bought a 75% stake in Austria-based MCE, an industrial services company.

Deutsche Beteiligungs AG, a German listed private equity firm, has bought MCE, an Austrian company that provides various services to industrial businesses.

DBAG has taken a 75 percent stake in MCE, with Andlinger & Company, a US investment company that was previously the principal shareholder, retaining a 25 percent interest. Terms of the transaction was not disclosed, but MCE recorded revenues of about €1 billion ($1.3 billion) in 2006.

Around half of this revenue was generated by the engineering division, which builds and maintains industrial plants. About €350 million came from the building division, while the balance came from a steel construction division and a personnel division. The company makes the majority of its money in Austria and Germany.

DBAG will be hoping to leverage its extensive experience in the European engineering sector. Three of its acquisitions – GAH Anlagentechnik, Rheinhold & Mahla and Babcock Borsig Services – operate in much the same industry at MCE.

The firm said that it hoped to develop MCE by taking advantage of the trend towards outsourcing industrial services, the growth of new markets in central and eastern Europe, and the increasing need for re-investment in the ageing infrastructure of the power industry.

The deal remains subject to approval from European anti-trust authorities, but is expected to complete in the next three months.

DBAG, which is listed on the German stock exchange, is one of Europe’s oldest buyout firms and has more than €1 billion under management.