Gienanth, Eisenberg/Pfalz (Germany)

Iron casting for broadly diversified end markets

Key facts at a glance

  • Growth based on stable customer relationships and good competitive position
  • Market development in Eastern Europe strengthened by minority shareholder Sistema
  • Diversification of end markets to include agriculture, railway technology and commercial vehicles with the acquisition of SLR Gusswerke II based in Austria and the Czech Republic in 2018
  • Expansion of the value chain at the end of 2020 with the acquisition of Zaigler Maschinenbau GmbH as a leading metal processor for system components weighing up to 50 tonnes
  • Acquisition of Trompetter Guss Chemnitz GmbH in 2021 complements expertise and expands the group's product portfolio with a focus on components for the commercial vehicle industry

Revenues in €mn

 

196

 

2019

 

161

 

2020

 

253

 

2021
Investment by DBAG
DBAG Fund VI
€34.2mn
DBAG's interest
€6.5mn
Management Buyout

Majority investment of DBAG Fund VI
First invested
March 2015

As of 30 September 2022

 

Profile

Gienanth is probably the portfolio company with the longest tradition: iron has been processed in Eisenberg/Pfalz, the foundry group's headquarters, since 1735. The site in Fronberg can be traced back to the year 1449. Today, the Gienanth Group with its six locations is one of the most efficient innovation leaders in the industry. The broadly diversified customer portfolio includes world market leaders who are supplied globally. In particular, the partnerships that have grown up with respected manufacturers of large engines form a stable basis for further growth.

About one third of the turnover is accounted for by cylinder crankcases for engine blocks, which are manufactured in the hand-mould casting process and are very demanding in terms of process technology. These are used as diesel, gas and hydrogen engines; gas engines in generators for decentralised energy supply (for example also in data centres for cloud applications) or as power supply or drive units on ships, locomotives and in other large vehicles. For such crankcases, Gienanth is the leading supplier worldwide. The company also has a leading position in another business area, machine mould casting. It produces highly stressed castings in large quantities, mainly clutch and brake components for the automotive and commercial vehicle industries.

The portfolio is rounded off by expertise in machining and providing ready-to-install system components - whether as individual parts or in large series.

Gienanth’s high productivity is largely based on the diverse experience of its employees and the knowledge of casting technology acquired over generations. We were also impressed by its good position vis-à-vis the competition and the list of well-known international customers who have relied on Gienanth for many years.

Lucas Herbert
Managing Director

>25

per cent

global market share in the clutch segment

Potential for development

Gienanth protrudes thanks to its outstanding technological and process know-how, particularly in hand-moulded castings. The company has a very good competitive position and stable, long-standing customer relationships. Gienanth should grow on this basis, possibly also through the acquisition of further companies. In doing so, it can benefit from our experience, since DBAG has been intensively involved in this sector with previous foundry investments over the last decade.

At the beginning of 2017, Sistema Finance S.A., a subsidiary of the Russian conglomerate JFSC Sistema, which is listed on the London and Moscow stock exchanges, acquired a minority stake in Gienanth and subscribed to a capital increase. DBAG Fund VI continues to hold the majority of the shares. Sistema boasts an excellent network in Russia, boosting Gienanth’s business opportunities in Eastern Europe.

Contact

Lucas Herbert
Lucas Herbert
Lucas Herbert
+49 69 95787-208

Lucas Herbert

Managing Director

Lucas Herbert joined Deutsche Beteiligungs AG in 2007 and became a Managing Director in 2015.

Lucas Herbert has 15 years of experience in the private equity sector. During this time, he has gained extensive knowledge, particularly in the IT services/software, mechanical and plant engineering and healthcare sectors. Lucas Herbert has been involved in a large number of corporate investments and disposals. These include Romaco, Spheros, Gienanth and Silbitz. He also led the investment process in blikk, Cloudflight and operasan.

He holds a Master of Science in Business Administration from the Rotterdam School of Management, Erasmus University, and also studied at the Maastricht University and the University of Newscastle, Australia.

Current portfolio companies

evidia Cloudflight Gienanth operasan Silbitz

Former portfolio companies