Hg completes exit from Hirschmann(2)

HgCapital has completed its exit from the Hirschmann Group, selling the car communication division to management for an undisclosed sum.

HgCapital, a UK mid-market buyout firm, has sold German-based Hirschmann Car Communication to management, two months after selling the bigger part of the group to a US trade rival.

Hirschmann Car Communication

Financial terms were not disclosed, but HCC had sales of around €100 million ($133 million) last year. The company supplies navigation devices and antenna systems for radio and TV reception to the European motor vehicle industry.

Viktor Schicker, chief financial officer of the Hirschmann Group, said management was “very confident in the company’s great potential”. He also praised the company’s previous owners, saying: “Together with HgCapital, we have over the past few years successfully restructured HCC and established an outstanding position in the market.”

The sale of HCC follows Hg’s $260 million (€195 million) sale in January of Hirschmann Automation and Control to US-based Belden, an electronic cable maker.

The management team buying HCC comprises Shicker, HCC chief financial officer Joachim Brandes, HCC chief executive Ludwig Geis, and group chief executive Reinhard Sitzmann.

German bank Baden-Württembergische is funding the buyout, while P&P Pöllath & Partners provided legal advice to the management team.

Goldman Sachs, PwC and Clifford Chance advised Hg on the transaction.