Every day counts - Deutsche Beteiligungs AG

Deutsche Beteiligungs AG · Annual Report 2002/2003
Successful together – Partnership with Harvest drives Casco Surfaces deal
Casco Surfaces has been in the portfolio since July 2003. A key argument for the seller,
Netherlands-based Akzo Nobel N.V., was our partnership with Harvest Partners: Casco
Surfaces generates some 40 percent of its sales in North America – where Casco plans
to grow, in part by add-on acquisitions. Harvest Partners will be there to help. More on
this cross-border transaction on page 24.
2002/2003: Transaction overview
Safeguarding continuity – Management buyout of Preh Werke
Preh Werke is another joint acquisition with management and our co-investment fund.
A further investor is Rosemarie Preh: having the company founder’s family represented
in the shareholder base was important to Preh’s management and the seller, Rheinmetall
AG; we appreciate that continuity too. Read about upcoming opportunities for this
automotive supplier on page 35.
Pursuing growth targets – Babcock Borsig Service financed on sound base
Separating an internationally-operating group of companies out of pending insolvency
proceedings without damaging its business and arranging a new sound financial base
– that was a special challenge even to Deutsche Beteiligungs AG with its 40-year track
record. We contracted the purchase of the Babcock Borsig group’s service division in
August 2003. See page 36 for more information on how to create value through service
and maintenance for power plants.
228 million euros for co-investment fund – Investors confide in the team
With DBAG Fund IV, Deutsche Beteiligungs AG expanded its shareholder base: 20 investors,
18 of whom were not yet among its equity financiers, committed an average of 11 million
euros. Five management buyouts have been financed by Deutsche Beteiligungs AG
and the new parallel fund to date. Some 100 million euros have been planned for futher
investments in each of the next two years. An account of the fund and its investment
strategy begins on page 19.
Return target achieved – Realizations attest to investment strategy
Edscha AG, Andritz AG, Global Power Equipment Group Inc.: three management buyouts
were profitably realized this past financial year. The invested capital was approximately
doubled within three years, measuring up to the Company’s return target of 25 percent
p.a. For a presentation of these realizations, refer to pages 36 and 37.
Three smaller holdings sold – Strategy persistently pursued
Three of the smallest holdings – Heylo Energietechnik GmbH, the Vogel group, and
Vitas Inc. – were sold from the portfolio. The number of expansion financing investments
therefore declined further – in line with the Company’s strategy. See page 43 for
details on changes in the business field of expansion financing.
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