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€99.6mn
Equity investment
€51mn
Revenues 2019 (preliminary)
471
Employees 2019

KEY FACTS AT A GLANCE

  • Classic “hidden champion” – a global leader in mechanical engineering for the tyre industry
  • High level of vertical integration
  • Expansion of the service business holds further opportunities

Karl Eugen Fischer GmbH

Investment by
DBAG FUND VII

€99.6MN

DBAG'S INTEREST

€22.6MN

MANAGEMENT BUYOUT
Shareholders:
DBAG FUND VII

92.1%

EQUITY SHARE BELONGING TO DBAG

20.9%

other shareholders

7.9%

First invested

JUNE 2018

REVENUES in €mn

 

83

 

2017

 

87

 

2018

 

51

 

2019 (preliminary)

As of 30 June 2020

Mechanical and plant engineering and the automotive supply industry are two of the core sectors of DBAG. Through our many years of experience in these industries, we want to support KEF in getting the most out of the available potential resulting from the continued global growth in mobility demand.

JANNICK HUNECKE
MANAGING DIRECTOR

PROFILE

Karl Eugen Fischer GmbH (KEF) is the world’s leading manufacturer and developer of cutting systems for the tyre industry. Tyre manufacturers use the machinery produced by KEF primarily to manufacture rubber-coated steel wire and fabric layers (known as calendered cord material) for tyre carcasses and tyre belts. These layers form the supporting structure for the tyre and give it shape and driving stability. KEF’s machinery cuts this cord with absolute precision. The company’s manufacturing operations are located at its headquarters in Burgkunstadt (Upper Franconia). There is one distribution and service company in the US and one in China. Cutting systems are crucial for smooth production operations of the tyre manufacturing process. KEF’s machinery is at the forefront of this technology. For example, the machines are characterised by a high degree of precision and low material losses, both of which are key success factors. With a high level of vertical integration, KEF ensures that the machines, which are tailored to meet each customer’s requirements, can be supplied in the desired quality and by the desired deadline. The company has been working with its customers to develop the machines for decades and is the preferred supplier of countless tyre manufacturers.

POTENTIAL FOR DEVELOPMENT

Based on its outstanding technological position, KEF is anticipated to benefit from the rising demand for tyres. As cutting machines are capital goods, the market is faced with some underlying cyclicity. Nevertheless, in the long-term 4-5 per cent average annual growth in demand is expected.

FINANCIAL YEAR 2019

2019 was marked by a difficult market situation for KEF due to the increased uncertainty around future global trade tariffs and other factors as well as a decline in automotive production. Nevertheless, KEF was able to fully defend its market share.

OUTLOOK AND OBJECTIVES

A market recovery is expected for 2020. Backed by a corresponding order backlog, revenues and EBITDA are anticipated to increase over the prior year.

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