Deutsche Beteiligungs buys Babcock unit

German private equity firm Deutsche Beteiligungs has agreed to acquire the power plant services division of insolvent German group Babcock Borsig for an undisclosed sum.

Deutsche Beteiligungs, the German private equity firm, has announced that it is to acquire the power plant business of Babcock Borsig, marking the latest disposal to financial buyers for the insolvent German group.

 

Babcock Borsig Power Service and its subsidiaries provide servicing and maintenance for power plants in Europe as well as in the Middle East. The business generates annual revenues of some E400m and employs 2,100 people. Both parties agreed not to disclose the purchase price.

 

Deutsche Beteiligung will use capital from DBAG Fund IV, which earlier this year held a second close in June on E180m, to fund the acquisition. The completion of the transaction is subject to approval by the anti-trust office.

 

“Our long track record in the mechanical engineering and plant construction industries as well as the industry-linked service business has paid off once more in finalising this transaction,” said Torsten Grede, a member of Deutsche Beteiligungs’ board. “Under the new ownership, this company will be able to exploit its op­portu­nities for growth in the coming years.”

 

Last year, US private equity firm One Equity Partners acquired a 75 per cent stake in German shipyard Howaldtswerke Deutsche Werft (HDW), the world's leading maker of non-nuclear submarines, from a group of shareholders including Babcock Borsig.