Mackprang Holding, which is majority owned by German private equity firm Hannover Finanz, has sold its ownership stake in Schlemmer to 3i Group with Schlemmer’s management team also investing. 3i has agreed to invest EUR181 million in Schlemmer, a global leader in cable management solutions for the automotive industry.
Baird served as the exclusive financial advisor to Hannover Finanz and Mackprang Holding on this transaction. Joachim Beickler and Sven Harmsen led the Baird team on this deal, which is still subject to customary regulatory approvals.
Founded in 1954 and headquartered in Poing, close to Munich, Schlemmer develops and produces cable protection for automotive and industrial applications. The group employs 2,500 people globally, and generated gross sales of EUR220.2m in 2015 (including 50 percent of the sales generated by the joint venture in China).
Over the past 20 years, Schlemmer has successfully grown internationally, which is reflected in a double digit annual revenue growth rate. The company has built long-standing relationships with European and Northern American as well as Japanese and Chinese Tier 1 Suppliers and Original Equipment Manufacturers (OEM). Schlemmer offers a well-diversified product portfolio and operates a global manufacturing network of 23 plants in 14 countries. It is well-positioned to continue its growth path, particularly as its cable management segment is set to benefit from megatrends in the automotive industry such as connectivity, e-mobility, autonomous driving and safety.
Schlemmer is led by an experienced management team who have shaped the business over the past decade. Bernd Gottschalk, former management board member of Daimler and former President of the German automotive industry association VDA, will join the board as Chairman. In addition, Günter Hauptmann will join the board as Non-Executive Director. As a former management board member of Siemens VDO and member of the advisory board of Norma Group, he is very familiar with the specific growth drivers for Schlemmer and the general trends in the automotive industry.
Ulf von Haacke, Managing Director, Germany at 3i, says: “We are investing in a very successful company with strong relationships with blue chip customers. Schlemmer has high growth potential thanks to the underlying growth drivers and the ability to serve customers globally. We will support Schlemmer’s management team to build on the company’s strength in Europe and Asia and to further develop its global footprint by strengthening its presence in the US market.”
Josef Minster, CEO of Schlemmer, says: “We are delighted to be partnering with 3i for the next stage in our global growth story. During the past four years, Schlemmer developed very well under the ownership of Hannover Finanz and the Mackprang Holding. I’m convinced that in future, Schlemmer will greatly benefit from 3i’s deep experience and strong track record in the automotive industry, as well as from its international network.”
Bernd Gottschalk, designated Chairman of the advisory board of Schlemmer, says: “Schlemmer enjoys an excellent reputation with OEMs not only in Europe but worldwide as it builds on first-class products as well as strong growth drivers. I’m excited about the opportunity to support Schlemmer on its growth track."
