Deutsche Beteiligungs AG sells investment in Infiana

Deutsche Beteiligungs AG sells investment in Infiana

  • Successful MBO following spin-off
  • Production and distribution realigned – capacity boosted through investment
  • DBAG's guidance for 2018/2019 consolidated net income remains unchanged

Frankfurt/Main, 8 July 2019. Deutsche Beteiligungs AG ("DBAG") has successfully concluded its investment in Infiana Group GmbH ("Infiana"), selling its stake to Pamplona Capital Management, a UK-based financial investor. The stakes held by DBAG Fund VI (advised by DBAG) and by Infiana's management will also be sold. Corresponding agreements were signed last week; completion is subject to approval by antitrust authorities. The sale is expected to be closed within the next three months. DBAG will more than double its original capital investment through the sale. The parties have agreed not to disclose details of the purchase price.

The portion of the agreed sales proceeds attributable to DBAG exceeds the carrying amount of the investment in the interim financial statements in accordance with IFRS as at 31 March 2019. Hence, the disposal will make a slightly positive contribution to consolidated net income for the third quarter of 2018/2019 (ending 30 June 2019). Given prevailing uncertainty regarding other factors influencing consolidated net income, guidance for Deutsche Beteiligungs AG's consolidated net income for the full year 2018/2019 remains unchanged.

Infiana ( develops and produces specialised films for the consumer goods market, and for industry. They are used for sophisticated packaging and as components for hygiene products, as release liners and surface films for applications in the construction industry, and as release liners for technical adhesive tapes and special labels. The company has identified various attractive growth areas, including special films for pharmaceutical applications and for the production of composites. The large number and variety of final applications ensure a high degree of diversification. Thanks to its highly flexible production facilities, the company has a large product portfolio: it continuously benefits from a strong ability to innovate, for which it has won multiple awards. Infiana has two production sites in Germany and in the US and a total of 800 employees. The headquarters in Forchheim, Germany, form the nucleus of the company, which looks back on a 165-year history. In 2018, Infiana generated sales of 227 million euros. DBAG and the DBAG Fund VI had invested in Infiana within the scope of a management buyout (MBO) in December 2014. Its previous owner, a Finnish group, sold its specialised films business because it wanted to focus on the production of food packaging. Accordingly, the focus following the spin-off was on shaping Infiana's independence. Following the disposal of production facilities in Brazil and Thailand, Infiana expanded and modernised its sites in Germany and the US through significant investment in additional extrusion and coating capacity. ESG and Compliance policies were extended, bringing them into line with increased requirements.

"Infiana is in a much better position to exploit its market opportunities than it was five years ago", said Dr Rolf Scheffels, member of DBAG's Board of Management: "This was driven by investment as much as by a reorganisation of distribution. Previously, distribution was mainly regional: now, it's a global approach with a vertical structure."

Peter K. Wahsner, Chief Executive Officer of Infiana Group, commented on the change of shareholders: "Infiana has enjoyed tremendous development over recent years. The Company is in a good position to continue operating successfully going forward, thanks to its efficient and modern production facilities and its leading position in attractive end markets."

The disposal of the Infiana investment is the fourth closing of an MBO in DBAG Fund VI's portfolio. The Fund structured eleven MBOs between 2013 and 2016.