Muzinich & Co has provided funding for the acquisition of Fraureuth-based manufacturer Spindel-und Lagerungstechnik Fraureuth (SLF) through private equity sponsor Avedon Capital Partners in collaboration with SLF’s founders.
This partnership approach is designed to expand new strategic goals, further invest in SLF’s operations and pursue new market opportunities. The ambition of both the founders and Avedon is to further strengthen SLF’s competitive positioning by focusing on attractive end-markets, growing its customer base and fostering international growth.
Founded in 1993, SLF is a niche manufacturer of specialised spindles and bearings for customers active in industries such as mechanical engineering, food & beverage and motor and pump manufacturing.
“After an intense due diligence process, we found SLF’s engineering capabilities, niche product range and underlying strong profitability was a natural match for our lending model,” says Jan Henrik Reichenbach, Head of DACH Private Debt.
“Avedon is a key PE sponsor for the DACH & Benelux region with considerable experience working with specialised industrial companies. We believe their additional expertise will prove invaluable in helping SLF expand further in the years to come,” adds Kirsten Bode, Co-Head of Private Debt, Pan-Europe.
The majority of the loan will finance the acquisition from the founders, with a proportion allocated to fund further expansion projects. The founders, who also comprise the management team, have reinvested a significant portion of their proceeds and will move into advisory roles over time.
The senior facility came from the EUR706.5 million Muzinich Pan-European Private Debt Fund. The Fund, which had its final close in December 2018, has made 12 investments to date.
