Internationalisation and enlargement of product range
€108.7mn
equity investment
CHF103mn
Revenues 2018
400
Employees 2018

KEY FACTS AT A GLANCE

  • Merger with MEN – Group established as a full-service provider for communication solutions in railway vehicles
  • Consistently good order intake
  • Revenues and earnings on a comparable basis expected to exceed the previous year’s level

duagon Holding AG

Investment by
DBAG FUND VII

€108.7mn

DBAG'S INTEREST

€23.8mn

Management-Buy-Out
Shareholders:
DBAG FUND VII

93.9%

EQUITY SHARE BELONGING TO DBAG

21.3%

other shareholders

6.1%

First invested

JULY 2017

REVENUES in CHFmn

 

85

 

2016

 

96

 

2017

 

103

 

2018

As of 30 June 2019

duagon has developed long-standing customer relationships and broad-based technological expertise in its niche market. Its strong competitive position and the very positive market drivers provide an ideal environment for above-average growth.

TOM ALZIN
MANAGING DIRECTOR

~70

PERCENT

of systems in railway vehicles will be connected to each other by 2025

PROFILE

duagon AG, which has its registered office in the Swiss city of Dietikon, was established in 1995 and has since become a leading independent provider of network components for data communication in railway vehicles. The company’s products allow individual railway vehicle systems, such as doors, brakes, air conditioning systems and the primary control computer, to communicate via what is known as the TCN (“train communication network”). This makes it easier to integrate these systems into the train manufacturers’ networks and limits sources of errors in the process. This allows suppliers to concentrate on their core competencies, namely the development of the individual railway vehicle components. duagon products are used by virtually all train manufacturers and system suppliers.

POTENTIAL FOR DEVELOPMENT

duagon has established strong relationships with customers in China, the world’s largest market for railway vehicles, over the last ten years. In order to exploit the existing growth potential, the company intends to further expand its sales network, its development capacities and its supporting functions, particularly in China and in other foreign markets. duagon aims to establish itself as a specialist in providing solutions for data communication in railway vehicles by offering a broader product portfolio and via acquisitions in both the immediate and extended competitive environment.

FINANCIAL YEAR 2018

In May 2018, duagon merged with MEN Mikro Elektronik. Together, the two companies form a leading provider of software and hardware solutions for data processing and communications, particularly in railway vehicles. duagon and MEN complement each other in terms of their product range, technological expertise and global distribution structures. Now under one roof, the companies intend to make better use of the potential of the already growing market. The group of companies expects revenues and earnings to see a year-on-year increase in 2018 on a comparable basis as a result of the consistently good order intake.

OUTLOOK AND OBJECTIVES

In 2019, the management team will focus on integrating duagon and MEN. The aims is for the group of companies to assert itself on the market as a full-service provider for communication solutions in railway vehicles. Early joint sales activities have already been reflected in the order intake in 2018. Given the consistently high level of demand, particularly in China and India, the management team expects revenues and earnings to rise again in 2019.

Responsible team member

Tom Alzin
Tom Alzin

Managing Director

Tom Alzin
Name:
Tom Alzin
Telephone:
+49 69 95787-219
E-Mail:

Tom Alzin

Managing Director

Tom Alzin joined Deutsche Beteiligungs AG in 2004 and became a Managing Director in 2011.

He holds a degree in Business Administration from the HEC Lausanne, and also studied at the London School of Economics and Political Science.

Tom Alzin has 14 years of experience in private equity. During that time, he gained a wealth of knowledge, particularly in the mechanical and plant engineering and in the services sector. Tom Alzin was involved in numerous acquisitions and realisations and also in the IPO of Homag. The realisations of Homag and Spheros, subsequent to their very successful development, are two of his most successful transactions. Tom Alzin also led the investment process in FDG, Pfaudler, Schülerhilfe, Telio, Polytech, duagon and Kraft & Bauer and sits on the advisory councils of the companies, which are still part of the DBAG portfolio.

Current portfolio companies

Telio Management GmbH Polytech Health & Aesthetics GmbH Pfaudler International S.à r.l.

Former portfolio companies

Tom Alzin

Managing Director

+49 69 95787-219
tom.alzin(at)dbag.de