DEEN
Organic and inorganic growth
€20.4mn
Equity investment
€130mn
Revenue 2017 (EXP.)
875
Employees 2017

KEY FACTS AT A GLANCE

  • Objective: growth based on strong customer relationships and a good competitive position
  • Capital increase and new minority partners
  • Measures to achieve operational improvements bearing fruit, revenue and earnings expected to exceed prior-year level

GIENANTH GMBH

Investment by DBAG
DBAG FUND VI

€20.4MN

DBAG'S INTEREST

€3.9MN

MANAGEMENT BUYOUT
Shareholders:
DBAG FUND VI

51.9%

EQUITY SHARE BELONGING TO DBAG

9.9%

other shareholders

48.1%

First invested

MARCH 2015

REVENUES in €mn

 

132

 

2015

 

127

 

2016

 

130

 

2017 (EXP.)

As of 30 September 2017

~30

PERCENT

of the worldwide market share in engine blocks that are produced from hand-moulded castings

Gienanth’s high productivity is based to a large part on the multifaceted skill and experience of its employees and the expertise it has gained in casting technologies over generations. We were also impressed by Gienanth’s excellent competitive position and the roster of prominent international customers who have relied on Gienanth for years.

JANNICK HUNECKE
MANAGING DIRECTOR

PROFILE

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 goes all the way back to a hammer mill that opened for business in 1449. Today, Gienanth is an important partner for the automotive industry and big engine manufacturers worldwide. As the fourth largest customer market for iron castings worldwide, Germany is a key target market for Gienanth. Accordingly, the company generates about 40 percent of its revenues there.

It also produces hand-moulded castings of highly sophisticated engine blocks (cylinder crankcases) for large diesel and gas engines. The crankcases are used in engines installed in generators for decentralised energy supply (but also for data centres belonging to Facebook and Google), and as energy supply or power units on ships, in locomotives and in other large-scale vehicles. For these crankcases, Gienanth is the leading provider worldwide, with a global market share of around 30 percent. 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; this means that in the area of clutch components, it accounts for more than 25 percent of the global market.

POTENTIAL FOR DEVELOPMENT

Gienanth stands out thanks to its outstanding technological and process expertise, 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 through the acquisition of further foundries. In doing so, it can benefit from our experience, since DBAG has been intensively involved in this sector over the last few years and has already invested in foundries in the past.

FINANCIAL YEAR 2017

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 GmbH and also 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. Gienanth expects significantly improved  earnings in 2017, alongside a small increase in revenues. In the machine moulding line of business, the company has acquired new customers; in the hand-moulded casting line of business, the most recent investments in plant are bearing fruit, allowing the company to achieve shorter throughput times and better process quality overall.

OUTLOOK AND OBJECTIVES

The management team is confident that it can benefit from the improved market situation for large engines in 2018. Revenues and earnings are expected to exceed the 2017 level.

Jannick Hunecke
Jannick Hunecke

Managing Director

Jannick Hunecke
Name:
Jannick Hunecke
Investment focus:
Management buyouts
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 earned a degree in Economics from the University of Münster and took an assignment there as a research assistant before coming to Deutsche Beteiligungs AG.

Jannick Hunecke has more than 16 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

Silbitz Group GmbH Gienanth GmbH Frimo Group GmbH

Former portfolio companies

Jannick Hunecke

Managing Director

+49 69 95787-131
jannick.hunecke@dbag.de