DEEN
€31MN
Equity investment
€81MN
Revenue 2017 (EXP.)
1,500
Employees 2017

KEY FACTS AT A GLANCE

  • Growth drivers: increasing proportion of electrical and electronic components in vehicles
  • Increase in efficiency due to new headquarters and logistics centre
  • Revenues expected to be up in a year-on-year comparison

DIETER BRAUN GMBH

Investment by DBAG
DBAG FUND VI

€31.0MN

DBAG'S INTEREST

€5.9MN

MANAGEMENT BUYOUT
Shareholders:
DBAG FUND VI

86.8%

EQUITY SHARE BELONGING TO DBAG

16.5%

other shareholders

13.2%

First invested

JANUARY 2017

REVENUES in €mn

 

67

 

2015

 

77

 

2016

 

81

 

2017 (EXP.)

As of 30 September 2017

8

percent

annual demand growth expected in the market for cable sets

Electrical components are rapidly becoming more and more important in automobile manufacturing. Only a handful of providers in this fragmented supplier market are able to meet the rising demands for orders, including orders involving smaller quantities.

DEAL CAPTAIN’S OPINION

The automotive construction industry is in the midst of a period of upheaval world wide. Increasing demands from the consumers in terms of mobility are also changing their automobiles. The trend towards component digitalisation is continuing unabated. The buzzwords of the future will be internet connectivity, autonomous driving and e­mobility. Cables are a key part of this process of technological change. They can be found in multifunctional steering wheel controls and connect electrical modules with the wire harness. They link the on­board computers of vehicles with engine control units. They connect head­lights, interior lighting, assistance system sensors and countless electronic components, creating increasingly complex networks.
Dieter Braun, an expert in cable sets and interior vehicle lighting, has specialised in manufacturing a vast range of quality­based components. The company is valued by its customers in the automotive supply industry for being able to deliver efficient solutions of above­average complexity, even for small­ to medium­sized quantities and with variable lead times.

PROFILE

Dieter Braun is a specialist in cable sets and interior vehicle lighting. The company’s products connect a vehicle’s various sub-systems with its wire harness. In addition to its main business in the automotive industry, Dieter Braun generates around 15 percent of its revenues from components for mechanical and plant engineering and for the household appliance industry. The company has experienced strong growth since it was founded in 1993. In the seven years prior to the start of the investment, it was reporting annual revenue growth averaging just under 15 percent. Dieter Braun has operations in its customers’ major production locations: in addition to its head office in Bayreuth, it has factories in the Czech Republic, the Ukraine, Mexico and China.

POTENTIAL FOR DEVELOPMENT

Dieter Braun is active in the automotive market – an area that is experiencing fundamental growth. The cable sets segment is expected to witness annual demand growth of eight percent over the next few years, well ahead of the rates of growth predicted for the market as a whole. Dieter Braun is benefiting from the increasing proportion of electrical and electronic components in vehicles, from their growing diversity and complexity, and from the trend towards production outsourcing among original equipment manufacturers (OEMs) and suppliers. The company has used various applications to position itself in a field that will be vital in the future: e-mobility. This means that the company is now considered a key player for its customers in the automotive supply industry.

FINANCIAL YEAR 2017

The market environment for Dieter Braun and its products remained positive in 2017. The company benefited from the strong demand among all customer groups and regions. Although growth has been held back by capa city bottlenecks, Braun is expected to generate higher revenue in 2017 than in 2016. Earnings are expected to be on par with the prior-year level.

OUTLOOK AND OBJECTIVES

In the new financial year, the sustained high level of incoming orders is expected to translate into higher revenues and better earnings. The company will also benefit from the completion of a new head office in Bayreuth and from a more efficient logistics centre, based at the same location.

In Dieter Braun GmbH, we have found a company that will reap great benefits from the increasing number of intelligent components and automotive electrification, thanks to its attractive business model.

Responsible team member

VOLKER BONSELS, MANAGING DIRECTOR

Dieter Braun is not the first automotive supply company that Volker Bonsels has been responsible for in his role as deal captain. Another example is Otto Sauer Achsenfabrik, an investment that he managed for almost ten years. The company’s MBO ranks among our most successful transactions. Volker Bonsels has been working with us since 1995 and has been a member of the Board of Management since 2001, meaning that he has more than 20 years of private equity experience. He had previously completed a degree in industrial engineering. Volker Bonsels puts to use his extensive knowledge of the construction supplies, automotive supplies, industrial services and mechanical and plant engineering sectors. The most successful transactions that he has been responsible for include the Coperion and Lewa MBOs.

Volker Bonsels
Volker Bonsels

Managing Director

Volker Bonsels
Name:
Volker Bonsels
Investment focus:
Management buyouts
Telephone:
+49 69 95787-152
E-Mail:

Volker Bonsels

Managing Director

Volker Bonsels joined Deutsche Beteiligungs AG in 1995 and became a Managing Director in 2001.

He received a degree in Engineering Management from the University of Kaiserslautern.

Volker Bonsels has more than 20 years of experience in private equity. He was, and is, a member of the advisory councils at those portfolio companies in which DBAG invested under his lead capacity. He has extensive expertise in a variety of sectors, including building components, industrial services and mechanical and plant engineering. Among the most successful transactions he led are Coperion, Lewa and Otto Sauer Achsenfabrik.

Current portfolio companies

Dieter Braun GmbH Cleanpart Group GmbH

Former portfolio companies

Volker Bonsels

Managing Director

+49 69 95787-152
volker.bonsels@dbag.de