Deutsche Beteiligungs AG invests in family-owned businesses

  • Novopress new in portfolio
  • Holding in JCK increased
  • Growth financing alongside DBAG Expansion Capital Fund

Frankfurt am Main, 20 July 2015.
 Deutsche Beteiligungs AG (DBAG) and its managed DBAG Expansion Capital Fund (ECF) will invest in a 40 percent interest in Novopress GmbH Pressen und Presswerkzeuge & Co. KG (“Novopress”), a leading developer and manufacturer of tool systems for the sanitary, electrotechnical and construction industries. Concurrently, DBAG and the fund will acquire a 12.4 percent interest in JCK Holding GmbH Textil KG (“JCK”); trading companies for textiles, sportswear and other products operate under the JCK umbrella. DBAG and the fund acquired the interests from AlpInvest Partners, a Netherlands-based globally operating asset manager. They will invest a total of 23.3 million euros within the scope of a portfolio purchase, which also encompasses other assets and smaller equity holdings; of that amount, 11.1 million will be invested by DBAG. In both of the companies, the remaining interests will continue to be held by the family owners.

Novopress (Neuss, www.novopress.de) is a strongly growing tool systems manufacturer with an excellent market position in Europe. Heating and plumbing contractors use electromechanical and hydraulic Novopress tools for connecting pipes. The tools, many of which are patent protected, enable fast, precise connections. Tools used in the electrotechnical industry as well as the spare parts business account for a smaller part of revenues, or about 15 percent. Based on a leading market position in Europe, Novopress intends to further expand its business in pipe connecting technology and intensify its international sales organisation, for example in the US. DBAG will hold 19.0 percent and the DBAG ECF 21.0 percent in Novopress.

DBAG was previously invested with a 3.6 percent interest in JCK (Quakenbrück, www.jck.de) and will now increase its stake to 9.5 percent. The DBAG ECF will own another 6.5 percent. Through its trading companies, JCK supplies textiles to large supermarket operators, especially to discount chains. JCK undertakes the market analyses, clothing designs, procurement and delivery. The company’s record of success is founded on its long-standing proven conceptual and logistics strengths. That has enabled JCK to grow with its customers. In 2014 JCK generated revenues of 583 million euros; in comparison to five years ago, this represents average annual growth of more than seven percent. Growth continues to be on JCK’s agenda. To that end, JCK wants to enlarge its product range and customer base.

DBAG is very familiar with Novopress and JCK. The two companies have been in the portfolio of DBG Fonds I since 1990 (Novopress) and 1992 (JCK). DBAG managed the fund’s portfolio on behalf of its former shareowner, AlpInvest Partners. Together with the DBAG ECF, DBAG has now acquired that fund.

“Novopress and JCK complement the portfolio of our growth financing fund by adding two attractive companies that promise good value appreciation opportunities based on tried-and-true business models,” said Dr Rolf Scheffels, Member of the DBAG Board of Management, commenting on the signing of the contract.

As in the past, the investments in Novopress and JCK create opportunities to participate in the companies’ performance through distributions and thereby increase DBAG’s current income from investment activities. At the same time income from fund management and advisory services will decline as scheduled because of the liquidation of DBG Fonds I.