Direct Investment

NORD Holding acquires leading secondary aluminium producer Karl Konzelmann

09.02.2004

Company and the management of the company itself, NORD Holding Unternehmensbeteiligungsgesellschaft, Hanover has taken a stake in Karl Konzelmann GmbH & Co KG, the fifth largest secondary aluminium producer worldwide headquartered in Hanover and New-Ulm. The company has been sold by the listed AGOR AG (previously NORDAG), Cologne. The acquisition secures the continued long-term existence of the company headquarters in Hanover with currently 130 employees and its location in New-Ulm with 150 employees.

Konzelmann has a production capacity of more than 150.000 t secondary aluminium and with turnover of more than € 200 mil. in 2003 ranks third amongst European aluminium recycling companies. The company expects to achieve turnover of more than € 230 mil. in the current reporting year. In the past few years Konzelmann has been able to tap into above average market growth in the secondary aluminium sector and expects a further sharp rise in demand in future due to the diversity and the excellent product qualities that aluminium has to offer as a light metal. For example the amount of aluminium used in cars has risen from an average of 50 kg/car in 1990 to 110 kg/car in 2002. The amount of aluminium used per car is forecast to be between 170 to 200 kg for 2010.

Secondary aluminium's excellent recycling qualities enhances its market opportunities so much so that it is now the leading aluminium sector in the country. In Europe Germany has the highest recycling rate. Recycling is particularly meaningful given the extremely energy-intensive production process of primary aluminium. Producing one tonne of secondary aluminium by processing and melting aluminium scrap requires only one tenth of the energy needed for the production of one tonne of primary aluminium.

Supported by NORD Holding and the BayBG the company can go head and invest further in production capacity to continue to achieve double digit growth figures over the next few years. The company views the consolidation trend in the German market as an opportunity to also expand through further specific acquisitions. Konzelmann's customer base includes automotive manufacturers such as BMW, Daimler Chrysler and VW as well as a number of automotive suppliers. Further important customers are to be found in the mechanical engineering, consumer goods and construction sectors.

About NORD Holding

With its 50-year history and over € 2.0 billion Assets under Management, NORD Holding is one of the leading Private Equity Asset Managers in Germany with a focus on direct and fund investments.

The direct investments division of NORD Holding focuses on structuring and financing company succession models, acquiring parts of larger groups/subsidiaries as well as on expansion financing of medium-sized companies. In contrast to most other financial investors, who only manage closed-end funds, NORD Holding acts as a so-called "evergreen fund", thereby investing from its own balance sheet with no maturity restrictions. Currently, the fund has interests in more than 15 companies in the DACH region.

The fund investments division targets the small- and mid-cap segment of the European private equity market through primaries, secondaries and co-investments.

NORD Holding has a strong focus on emerging buyout managers, hands-on investment strategies and regularly acts as an anchor investor. The division manages € 1.3 billion and ranks among the top decile fund investment groups in Europe.

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NORD Holding
Unternehmensbeteiligungsgesellschaft mbH
Christiane Lukas
Walderseestraße 23
30177 Hannover

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lukas@nordholding.de