Organic and inorganic growth
€20.4mn
Equity investment
€175mn
Revenues 2018
1,100
Employees 2018

KEY FACTS AT A GLANCE

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

GIENANTH GROUP 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

 

127

 

2016

 

143

 

2017

 

175

 

2018

As of 30 June 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

>30

PERCENT

worldwide market share in the large engines 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 large 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.

The hand-moulded casting process produces extremely sophisticated cylinder crankcases for large diesel and gas engines. The large engines are used in generators for decentralised energy supply, e.g. for computer centres for data processing or as power supply or drive units on ships, in locomotives and in other large vehicles. With a market share of over 30 percent, Gienanth is the world's leading supplier of such cylinder blocks. The Gienanth Group also holds a leading position in its second business area, machine mould casting. Medium and large quantities of highly stressed cast iron parts are produced, which are mainly used in brakes, clutches and vehicle structures for the commercial vehicle and automotive industries, as well as in agricultural machinery technology. The spare parts business is very important in addition to original equipment.

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 recorded strengthened customer relationships and numerous new customers as a result of continuous sales activities. The good order intake in all areas led to revenues and earnings again exceeding the previous year's level in financial year 2018. 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 is confident that the business and the tonnage produced will continue to expand in 2019. Revenues and earnings are expected to increase further compared to 2018, with higher profitability.

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 Group GmbH Frimo Group GmbH

Former portfolio companies

Jannick Hunecke

Managing Director

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