Deutsche Beteiligungs exits Victorvox

The German private equity firm has announced its second investment this month with the sale of its holding in the German telecommunications business.

Deutsche Beteiligungs, the German private equity firm which last month closed it latest fund, DBAG IV, on E228m, has sold its stake in Victorvox, a German telecommunications provider, to German group Drillisch.

 

Deutsche Beteiligungs made its original in Victorvox in 1999, taking a 25 per cent stake for an undisclosed sum. At the time of the deal, Victorvox, which was expected to list on the Neuer Markt in 2000, had a turnover of around E70m.

 

The sale, which is subject to approval by the German Cartel Office, is expected to be completed within the next few weeks. A spokesperson for Deutsche Beteiligungs said that exit multiples would not be disclosed until the transaction is completed.

 

The Victorvox exit comes two weeks after Deutsche Beteiligungs announced the acquisition of electronics company Preh Werke from Rheinmetall. The company employs a staff of some 1,700 and generates annual sales of more than E220m. The price paid by Deutsche, which invested from its DBAG IV fund, was not disclosed.

 

Preh provides driver control and sensor systems for customers include BMW, DaimlerChrysler, GM/Opel and the Volkswagen group. “[The company] possesses broad technological expertise and is poised in the automotive electronics market, which is registering above-average growth,” said Helmut Irle, member of the board of management of Deutsche Beteiligungs, in a statement. “Preh is also a partner in the development and production of industrial electronics solutions; we see good opportunities to expand these activities as well.”

 

In total, Frankfurt-listed Deutsche Beteiligungs has provided capital totalling more than E311m to 47 portfolio companies; a further E198m have been invested by funds managed by Deutsche Beteiligungs AG. Deutsche Beteiligungs invests in mid-sized companies in Germany, selected European countries and the United States.