Listed German private equity investor Deutsche Beteiligungs – otherwise known as DBAG – has sold mechanical engineering company Romaco Group to Chinese engineering business Truking Group for €133 million, earning it an IRR between 15 and 20 percent.
DBAG acquired Romaco, which provides processing and packaging technology to the pharmaceutical industry, in April 2011 for €59 million using capital from its balance sheet and fifth fund. DBAG embarked on a growth plan for the company which saw it make a number of add-on acquisitions and open new sites in countries such as Russia and Brazil.
“Romaco has clearly moved forward in recent years, and the sale successfully concludes that strategic development. Romaco can now seize the opportunities inherent in its improved market position in Asia. We are delighted to be in a position to participate in this step, too,” Rolf Scheffels, member of the board of management of Deutsche Beteiligungs said.
DBAG has retained a 24.9 percent interest in Romaco which it will sell progressively over the next three years, a spokesman told Private Equity International.
Romaco employs 550 people and for the year ended 31st October 2016 generated revenues of €134 million.
DBAG is currently investing Fund VII, a €1 billion pool of capital comprising two parallel funds: the €800 million “principal” fund and a €200 million “top-up” vehicle. The firm has approximately €1.8 billion under management.