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IK to sell passive fire protection expert svt Group to Ergon Capital

IK Investment Partners’ (IK) IK Small Cap I Fund has reached an agreement to sell svt Group (svt), a provider of passive fire protection products and services as well as restoration management services, to Ergon Capital Partners III (Ergon).

Financial terms of the transaction have not been disclosed.
 
svt is the leading company in Passive Fire Protection (PFP) and Restoration Management (RM) in Germany with c. 50 years of experience. The PFP business comprises the full value chain from R&D to manufacturing as well as installation services of fire preventing and resistant products that are sold either to OEM or construction customers. svt has been a pioneer in passive fire protection systems since 1977 and the only player being forward integrated into the PFP installation business. Blue chip customers like Siemens, Bombardier, CRCC, Airbus, OBO Bettermann and Würth rely on svt PFP products. Landmark PFP Installation references include European Central Bank building and Eurotower in Frankfurt.
 
In addition, svt offers one-stop-shop services in Restoration Management specialising in fire, water and natural hazard damage restoration, as well as pollutant removal.
 
During the Fund’s ownership, the Company grew its revenues from EUR80 million to circa EUR114 million and its employees from 322 to 450 while investing significant resources into R&D and product development. svt obtained a large number of licenses from the international certification organisation/company Underwriters Laboratories (UL), enabling the further internationalisation of the products. Consequently, the Company built out its international presence by opening new locations in Singapore and Ajman to serve the international markets with its strong product base. svt’s acquisition of AIK Flammadur Brandschutz in 2016, to further expand the PFP products offering for transportation OEMs, underscores IK’s focus on supporting its portfolio companies to grow via add-on acquisitions.
 
As a consequence, svt has increased its revenue with PFP Products to the OEM customers by more than five times and also doubled, as a Group, its absolute operating earnings during the Fund’s investment period.
 
“It has been a pleasure working with Steffen Gerdau and his team, and we would like to thank all of svt’s employees for their hard work over the last years. Together we have managed to grow the business significantly, both in Germany and abroad. svt was the first investment in the IK Small Cap I Fund, and clearly demonstrates IK’s approach to value creation, by way of enlarging the products offering, drive internationalisation and growing via acquisitions,” says Anders Petersson, Partner at IK Investment Partners and advisor to the IK Small Cap I Fund.
 
“We enjoyed working with the IK team. With their support, we have completed a synergetic add-on acquisition with AIK Flammadur, invested into our development capabilities and product offering as well as expanded our international footprint. I am now looking forward to continuing the internationalization and growth with Ergon,” says Steffen Gerdau, CEO of svt Group.

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