011_DBAG GB 2000 Innen E - Deutsche Beteiligungs AG

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Principal holdings
Principal holdings
Deutsche Beteiligungs AG was a partner in a syndicate that purchased
Andritz AG, Graz, Austria, in a management buyout in December 1999.
The syndicate was led by our Austrian private equity partner Unternehmens
Invest AG (UIAG), whose principal shareholder is Deutsche Beteiligungs
AG. Jointly with UIAG, we hold a 25 percent interest in Andritz. This
company, which manufactures production facilities for the paper, steel
and feed industries, generated sales of “ 766 million in 1999. The syndicate’s
investment is targeted at supporting Andritz's ongoing program
of expansion and internationalization, thereby furthering the excellent
progress this company has made over the last few years.
In May 2000, Andritz acquired a 50 percent interest in the Ahlstrom
Machinery Group of Finland. Andritz may also exercise put/call options,
which would give Andritz the sole ownership over the Ahlstrom Machinery
Group. Ahlstrom is the leading manufacturer of facilities for the production
of chemical cellulose, including lye recovery and chemical retrieval
plants required for the process. Ahlstrom ideally complements Andritz’s
product and service range as world market leader for wood processing
technology (bark stripping and chopper plants), particularly in refiner
systems for cellulose production and cellulose drying plants. Through this
acquisition, Andritz significantly enhanced its worldwide market leadership
in cellulose and paper technologies.
In November 2000, Andritz continued its acquisition strategy by purchasing
Universal Milling Technology, making the company the world market
leader in feed technologies.
For financial year 2000, Andritz anticipates a rise in consolidated sales to
approximately “ 900 million and a sustained improvement in earnings by
having exploited synergies – primarily through the Ahlstrom acquisition.
Additionally, the economic uptrend in a number of regions – particularly
in China and other Asian countries as well as South America – is expected
to favorably impact the company's results. A restructuring and efficiency
program will improve cost structures.
The acquisition of the Ahlstrom Machinery Group brought Andritz AG a
significant step towards a public offering.