NORD Holding and capiton sell Engelmann Sensor to DPE
NORD Holding Unternehmensbeteiligungsgesellschaft mbH (“NORD Holding”) and capiton AG (“capiton”), have sold their stakes in Engelmann Sensor GmbH, Wiesloch, to funds advised by DPE Deutsche Private Equity (“DPE”). The parties have agreed not to disclose the financial terms of the transaction, which remains subject to approval from the relevant competition authorities.
Engelmann is the leading European manufacturer of smart heat meters for the sub-metering industry. In recent years, Engelmann has continuously strengthened its market positioning by evolving its comprehensive product portfolio towards becoming the preferred system provider in the market. Driven by extensive R&D activities, Engelmann offers its diversified customer base a high quality “one-stop-shop” offering for residential sub-metering. Engelmann has 170 employees with assembly sites in Wiesloch (Germany, Headquarters) and Suining (China) and has generated revenues north of €45m in FY20/21. Driven by regulatory enforcements and the overall climate goal for decarbonization, the roll-out of smart meters is expected to significantly contribute towards Engelmann’s further growth over the coming years.
NORD Holding and capiton acquired Engelmann in 2014. Key milestones were the successful development of a new management team, improvement of operational efficiencies as well as new product launches and successful client diversification. This contributed to achieving double-digit annual sales growth, industry leading delivery times and the newest product range in sub-metering on the market.
“NORD Holding and capiton have always been committed and competent partners for us and have provided strong and consistent support as we implemented our growth story over the past years” recalls Michael Keuthen, CEO of Engelmann, on their successful cooperation. “We look forward to having a new partner in DPE, with who we jointly approach our next growth chapter”.
The sellers, NORD Holding and capiton stated “In the past years, the management team of Engelmann has achieved a tremendous development. It has been a pleasure working with Engelmann and its management team and we are convinced that this great journey will continue under new ownership”.
“We are impressed by Engelmann’s success over the last years and the achievements of the management team. We are looking forward to support the company on its future growth path”, said Fabian Ruecker, Partner at DPE.
NORD Holding and capiton were advised by GCA Altium (M&A), Milbank (Legal), Deloitte (Financial & Commercial) and Flick Gocke Schaumburg (Tax).
DPE was advised by Cowen (M&A and debt advisory), Greenfort (Legal), LEK (Commercial), Alvarez & Marsal (Financial), Flick Gocke Schaumburg (Tax), Tauw (ESG) and Pöllath + Partners (Structuring).
capiton is an owner-managed private equity firm managing a total fund volume of over € 1.3 billion with roots going back to the early 1990s. With more than 60 engagements in the “Mittelstand” in the DACH region, capiton can refer to an extensive track record in buy-outs and growth capital for mid-market firms especially in our focus sectors pharma, med-tech, industrial technology and responsible consumption. With 28 employees, capiton invests in profitable firms and strives to generate earnings growth through organic growth initiatives as well as buy-and-build concepts. High levels of equity investments and flexible transaction structures characterise the investment approach. capiton supports strong management teams and entrepreneurs and always seeks strong alignment between its investors, the firm and portfolio companies. With fresh money out of a new fund capiton is well positioned to continue to generate attractive deals in the mid-market.
Christoph Spors managed the transaction on behalf of capiton.
DPE Deutsche Private Equity is an independent German investment firm. DPE focuses on mid-sized companies in the German-speaking region that operate in industries providing long-term growth prospects. Since foundation in 2007, DPE has invested in 30 companies that have concluded >70 follow-up investments and employ more than 9,000 people. DPE currently manages total assets of € 2.0 billion.
With a 50-year history and assets under management of € 2.5 billion NORD Holding is one of the leading private equity asset management companies in Germany. Our business consists of the Direct Investments and the Fund Investments divisions.
The main focus of the Direct Investments business is on structuring and financing of company succession models, the takeover of group departments / subsidiaries as well as expansion financing for medium-sized companies. In contrast to most other financial investors who only manage funds for a limited period, NORD Holding acts as a so-called "Evergreen Fund" without a time limit and invests from its own balance sheet. The company is currently invested in more than 15 companies in Germany and other German-speaking countries.
The Fund Investments division targets the small-cap segment of the European private equity market and focuses on primaries, secondaries and co-investments. NORD Holding concentrates strongly on buyout managers newly established on the market, operational investment strategies and regularly acts as an anchor investor.”