DEEN
Organic and inorganic growth
€27.9mn
Equity investment
€119mn
Revenue 2016
875
Employees 2016

KEY FACTS AT A GLANCE

  • Ongoing weak demand in one business area weighs on revenue and earnings
  • Good order level in machine-moulded castings
  • Operational improvements taking effect

GIENANTH GMBH

Investment by DBAG
DBAG FUND VI

€27.9MN

thereof DBAG

€5.3MN

MANAGEMENT-BUY-OUT
Shareholders:
DBAG FUND VI

60.9%

thereof DBAG

11.6%

other shareholders

39.1%

First invested

MARCH 2015

REVENUES in €mn

 

141

 

2014

 

132

 

2015

 

119

 

2016

As of 30 June 2017

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

IRON FOUNDRY WITH A FOCUS ON MACHINE- AND HAND-MOULDED CASTINGS FOR THE AUTOMOTIVE SUPPLIER INDUSTRY

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 back to a hammer mill in 1449. Today, Gienanth is an important partner for the automotive industry and other sectors 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.

Gienanth produces clutch and brake components in a ma­ch­ine-moulded casting process. It also produces hand-moulded castings of highly sophisticated engine blocks (cylinder crankcases) for large-size diesel and gas engines. The cylinder crankcases are used in engines installed in gene­rators for decentralised energy supply, and as energy supply or power units on ships, in locomotives and other large-scale vehicles. Gienanth is the leading provider worldwide for crankcases of this kind. The company also leads the market for machine-moulded castings, its second line of business. Gienanth manufactures high-strength cast parts that are subject to extreme wear on a large scale, primarily for the automotive and commercial vehicle industries; in the area of clutch components, it accounts for more than 25 percent of the global market.

POTENTIAL FOR DEVELOPMENT

Gienanth boasts outstanding technological and process expertise, particularly in hand-moulded castings. The company has a good competitive position and long-standing stable customer relationships. Gienanth should grow on this ­basis, possibly through the acquisition of further foundries. In doing so, it can benefit from our experience: DBAG has been involved in this sector intensively and has invested in foundries in the past. We basically expect the global market to grow both in automotive parts and large-scale engine blocks.

2016 FINANCIAL YEAR

In the first year of the investment, the company developed below target. Demand, above all for crankcases for large engine blocks, declined unexpectedly. This was mainly due to the drop in the oil price and the crises in the Middle East, Africa and the Ukraine, as well as economic weakness in Brazil and China, which attenuated demand. In particular the oil industry itself, a key buyer of such engines, curbed investment considerably. Revenues and earnings were therefore below expectations and down on the previous year’s values.

OUTLOOK AND OBJECTIVES

Management is confident that the company will continue to benefit from the call-off figures from the automotive industry in 2016, which are still high. The company intends to grow further and develop its portfolio through acquisitions and investments in plants. Plans to improve operational processes should also boost profitability.

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