Organic and inorganic growth
€20.4mn
Equity investment
€157mn
Revenues 2018 (exp.)
780
Employees 2018

KEY FACTS AT A GLANCE

  • Growth based on strong customer relationships and a good competitive position
  • Improved market cultivation in Eastern Europe thanks to minority shareholder Sistema
  • Good market situation in both business segments; revenues and earnings expected to be above the previous year’s level

GIENANTH GMBH

Investment by DBAG
DBAG FUND VI

€20.4MN

DBAG'S INTEREST

€3.9MN

MANAGEMENT BUYOUT
Shareholders:
DBAG FUND VI

61.5%

EQUITY SHARE BELONGING TO DBAG

11.7%

other shareholders

38.5%

First invested

MARCH 2015

REVENUES in €mn

 

127

 

2016

 

143

 

2017

 

157

 

2018 (exp.)

As of 30 September 2018

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

PERCENT

global market share in the clutch segment

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 (also for data centres for Facebook and Google), and as energy supply or power units on ships, in locomotives and in other large-scale vehicles. Gienanth is the leading provider worldwide for crankcases of this kind. 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.

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 in Eastern Europe.

FINANCIAL YEAR 2018

Gienanth enjoys a high order intake for hand and machine-moulded castings in a favourable market environment. Revenues and earnings in the financial year 2018 are again expected to be above the previous year’s level. In September 2018, Gienanth took over SLR Gusswerk II Betriebsgesellschaft with a foundry in Austria and a casting finishing facility in the Czech Republic, thus expanding its product range and value chain.

OUTLOOK AND OBJECTIVES

The management team is confident that it can continue to benefit from the good market situation in 2019. Revenues and earnings are expected to be on a par with the 2018 level, with profitability also expected to improve.

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 GmbH Frimo Group GmbH

Former portfolio companies

Jannick Hunecke

Managing Director

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