Frankfurt-based buyout firm Quadriga Capital has bought German building materials supplier Essmann Group from Taros Capital for €110 million ($147 million).
The management of Essmann Group will re-invest in the buyout and remain as shareholders in the company.
Essmann supplies lights, fans and smoke alarms for use in commercial and domestic housing. The group had a turnover of about €130 million in 2006, and employs 780 people.
Philipp Jacobi, managing partner at Quadriga, said he intended to expand Essmann internationally using his company’s connections in Eastern Europe and Russia.
Quadriga specialises in management buyouts and growth financing of medium-sized companies in the German-speaking region, Eastern Europe and Russia. The company’s previous investments have included sports and travel accessories company Jack Wolfskin and Swiss textile company Zellweger Uster.
Taros, which bought Essman Group in 2000, used to be the lead investment arm of Dutch investor AlpInvest, before spinning out and re-branding in October 2005.
However, the firm had to abandon a €350 million fundraising in April 2006 after AlpInvest withdrew its cornerstone investment in the fund, throwing its future activity into uncertainty.
BNP Paribas, Linklaters and SJ Berwin advised Taros, while Quadriga was advised by Clifford Chance and Ernst & Young.