Every day counts - Deutsche Beteiligungs AG

Deutsche Beteiligungs AG · Annual Report 2002/2003
Corporate Review – Investments Management Buyouts
Deutsche Beteiligungs AG invested in Andritz AG (Graz, Austria) in December 1999
jointly with other financial investors in a transaction led by its Austrian private equity
partner Unternehmens Invest AG. Deutsche Beteiligungs AG had held 3.2 percent of the
shares; a managed co-investment fund owned a further 3.2 percent interest. Pursuant
to the disinvestment, both parties each now hold a 0.6 percent interest in this worldwide
leader in customized facilities, systems and services for the pulp and paper industry,
the steel industry, and other specialized industrial sectors.
By the end of August 2003, we had also sold the shares we held in the Global Power
Equipment Group Inc. Our exit from our investment in this American manufacturer of
equipment for gas power plants commenced with the company’s initial public offering
in May 2001. After the regulatory lock-up periods had expired, we sold our shares via
the stock exchange. We doubled the capital originally invested.
We entered the investment in Global Power by way of the co-investment right granted
to us as an investor in our American private equity partner’s fund, Harvest Partners III.
Following the initial public offering in 2001, Deutsche Beteiligungs AG and its co-investment
fund had each held 2.1 percent of the shares.
Selected MBO investments
In addition to Casco Surfaces, schlott gruppe AG, AKsys GmbH and Lund International
Holdings Inc. are, by book value at October 31, 2003, among the ten largest investments
in the portfolio:
schlott gruppe AG
FY 2002/2003 FY 2002 Change*
Sales € 613.7 million € 505.0 million n.a.
Earnings (EBIT) € 25.6 million € 35.5 million n.a.
*not comparable due to changes in the group of consolidated companies and a changeover in the fiscal year
Investment Equity share
Sales T€ 17,392 14.02%
Parallel fund another 7.7%
First invested in December 1999
Following a weak first six months, business activity for schlott gruppe AG (formerly
schlott sebaldus AG, renamed in March 2003) clearly recovered in the second half of
the 2002/2003 financial year. At September 30, 2003, sales had reached 613.7 million
euros, EBIT (earnings before income and taxes) amounted to 25.6 million euros. These
previous year’s figures are not comparable, as this was an incomplete financial year. The
earnings improvement in the second half of the year stems from cost optimization following
the company’s relocation to its new, ultra-modern site in Nuremberg’s harbor
district. Another key factor is that schlott is now able to profit from economies of scale
following the integration of the Broschek group.
www.schlottgruppe.de
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