Geographical expansion and enlargement of service business
€95.1mn
Equity investment
€201mn
TOTAL OUTPUT 2018
1,400
Employees 2018

KEY FACTS AT A GLANCE

  • Diversity of models in the automotive industry as a driver for growth
  • Tense market environment due to geopolitical risks and uncertainties in the automotive industry
  • Total output expected to be significantly lower than expected and below the previous year’s level

FRIMO GROUP GMBH

Investment by DBAG
DBAG FUND VI

€95.1mn

DBAG's Interest

€18.1MN

MANAGEMENT BUYOUT
Shareholders:
DBAG FUND VI

74.2%

EQUITY SHARE BELONGING TO DBAG

14.1%

other shareholders

25.8%

First invested

NOVEMBER 2016

TOTAL OUTPUT1 in €mn

 

215

 

2016

 

239

 

2017

 

201

 

2018
1 The company’s accounts are drawn up in accordance with the German Commercial Code (HGB); in view of the business model, total output provides a better picture of the company’s business activities within a year than revenues do.

 

As of 30 June 2019

95

percent

of the tools and equipment required are newly purchased by automotive suppliers before the start of production of parts for a new vehicle model

We are investing in a promising company with development potential that, as a supplier of tools and equipment for the automotive supply industry, covers two of our core sectors.

JANNICK HUNECKE
MANAGING DIRECTOR

PROFILE

Frimo is one of the world’s leading providers of tools and machinery used to manufacture plastic parts for different applications, such as car dashboards, door trims and arm rests. Its customers are mainly automotive suppliers but it also delivers its products directly to automotive manufacturers. The group has a decentralised structure and is a full-service supplier of tools, machines and automated production lines. Frimo’s product portfolio covers almost the entire process chain of its customers.

As the technology required to manufacture interiors must be updated or adapted for almost every new car model due to changes in design, this means that Frimo’s business is not determined by the number of vehicles produced, but rather by the number of new car models. The company benefits from the trend towards high-quality and individually designed vehicle interiors, which allows automotive manufacturers to set themselves apart from the competition. Apart from the automotive industry (85 percent of its revenues), Frimo also serves customers in the aviation and chemical industries.

POTENTIAL FOR DEVELOPMENT

Key drivers for the company’s further development in the coming years are further regional expansion, especially in China, the US and Mexico, as well as growing the service and spare parts business and acquiring supplementary technologies and applications. Frimo operates in a niche market and benefits from its good technology base. DBAG will support the company in doing so with its own expertise and that of the DBAG network, for example in the areas of strategy and organisation. To this end, we can rely on our in-depth knowledge of business models in mechanical and plant engineering as well as in global market structures, which has been gained from investing in 16 companies in this industry sector in the past 20 years, among other experience.

FINANCIAL YEAR 2018

Frimo’s market environment is currently characterised by persistent geopolitical risks and uncertainties in the automotive industry. In the wake of the exhaust gas scandal, for instance, numerous automobile manufacturers have postponed the production of new models or even completely suspended such plans. Given these developments, Frimo’s total output in the 2018 financial year is expected to be significantly lower than originally expected and to remain below the previous year’s level.

OUTLOOK AND OBJECTIVES

The measures to realise the development potential agreed on with management at the start of the investment were initiated in the financial year 2017. The main challenge facing Frimo over the next few months will be expanding its production capacities in light of the sustained high order intake. The company has already initiated measures to tackle this issue. It will also be focusing on expanding its service and spare parts business.

Responsible team member

Jannick Hunecke
Jannick Hunecke

Managing Director

Jannick Hunecke
Name:
Jannick Hunecke
Telephone:
+49 69 95787-131
E-Mail:

Jannick Hunecke

Managing Director

Jannick Hunecke joined Deutsche Beteiligungs AG in 2001 and became a Managing Director in 2008.

He holds a degree in Business Administration from the University of Munster, where he also worked as a Research Assistant focusing on finance and accounting.

Jannick Hunecke has 18 years of experience in the private-equity sector and on the advisory boards of the portfolio companies he supports. He has a wealth of knowledge in the sectors of industrial services, industrial components and mechanical and plant engineering. The most successful transactions DBAG entered into that he led are HT Engineering and MCE. He was also responsible for the development of Broetje-Automation.

Current portfolio companies

Karl Eugen Fischer GmbH Silbitz Group GmbH Gienanth Group GmbH Frimo Group GmbH

Former portfolio companies

Jannick Hunecke

Managing Director

+49 69 95787-131
jannick.hunecke(at)dbag.de