Organic and inorganic growth
€20.4mn
Equity investment
€197mn
Revenues 2019 (exp.)
1,180
Employees 2019

KEY FACTS AT A GLANCE

  • Growth based on strong customer relationships and a good competitive position
  • Improved market cultivation in Eastern Europe strengthened by minority shareholder Sistema
  • Diversification of end-markets to agriculture and special utility vehicles with add-on acquisition of SLR Gusswerk in 2018

GIENANTH GMBH

Investment by DBAG
DBAG FUND VI

€20.4MN

DBAG'S INTEREST

€3.9MN

MANAGEMENT BUYOUT
Shareholders:
DBAG FUND VI

60.1%

EQUITY SHARE BELONGING TO DBAG

11.4%

other shareholders

39.9%

First invested

MARCH 2015

REVENUES in €mn

 

143

 

2017

 

181

 

2018

 

197

 

2019 (exp.)

As of 31 December 2019

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.

JANNICK HUNECKE
MANAGING DIRECTOR

>25

PER CENT

global market share in the clutch segment

PROFILE

Gienanth GmbH (Gienanth) probably has the longest tradition of any company in the portfolio: at one of its two sites in Germany, it has been casting iron since 1735, while the other one goes all the way back to a hammer mill that opened for business in 1449. Today, Gienanth is an important partner for major engine manufacturers worldwide as well as for large OEMs in various end markets. The company generates about 40 per cent of its revenues in Germany, which is the fourth largest market worldwide in terms of demand for iron castings.

About one third of Gienanth’s revenues come from hand-moulded castings of highly sophisticated engine blocks (cylinder crankcases) for large diesel and gas engines. The crankcases are mainly used for engines for decentralised energy generation of various end markets such as data centres of Facebook/Google, energy supply or power units on ships, in locomotives and other large-scale vehicles. Gienanth is the leading provider worldwide of these crankcases. The company also leads the market for machine moulding, its second line of business. Gienanth manufactures high-strength cast parts on a large scale, primarily clutch and brake components for the automotive and commercial vehicle industries, and is the globally leading provider of brake plates for commercial vehicles.

POTENTIAL FOR DEVELOPMENT

Gienanth protrudes thanks to its outstanding technological and process know-how, particularly in hand-moulded castings. The company has a good competitive position and stable, long-standing customer relationships. Gienanth should grow on this basis, possibly also through the acquisition of further foundries. 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.

FINANCIAL YEAR 2019

Despite the difficult market environment of the foundry sector, Gienanth was able to increase its expected revenues for 2019, thanks to the diversification of its end-markets to agricultural and commercial vehicles via its Austrian add-on acquisition SLR Gusswerk. The management successfully focused on the implementation of operational improvements as well as cost saving measures to cope with the distressed market sentiment.

OUTLOOK AND OBJECTIVES

If the weak market situation persists in the upcoming year, Gienanth expects only a slight increase in revenues. However, Gienanth is considered to be in a strong position in comparison to its competitors and will try to benefit from the current environment by increasing their market share organically as well as through acquisitions.

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

Former portfolio companies

Jannick Hunecke

Managing Director

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