New customer acquisition and international expansion
€62.0mn
Equity investment
€28mn
Revenues 2019 (preliminary)
80
Employees 2019

KEY FACTS AT A GLANCE

  • Leading provider of fire extinguishing systems for tooling machines
  • Exploitation of market potential in Germany, Austria, Switzerland and Italy
  • Further potential through broader internationalisation

KRAFT & BAUER HOLDING GMBH

Investment by
DBAG FUND VII

€62.0MN

DBAG'S INTEREST

€14.1MN

MANAGEMENT BUYOUT
Shareholders:
DBAG FUND VII

79.2%

EQUITY SHARE BELONGING TO DBAG

17.9%

other shareholders

20.8%

First invested

NOVEMBER 2018

REVENUES in €mn

 

21

 

2017

 

26

 

2018

 

28

 

2019 (preliminary)

As of 31 December 2019

40

PER CENT

of its revenues Kraft & Bauer generates in the service and spare parts business

We invested in a company that has achieved a leading position in its niche market with products critical to success and safety. Kraft & Bauer benefits from its strong market position and from the overall growing importance of fire protection measures for machine tools.

TOM ALZIN
MANAGING DIRECTOR

PROFILE

Kraft & Bauer GmbH (Kraft & Bauer) develops, produces and installs fire extinguishing systems for around 800 different types of tooling machines. The focus is on extinguishing systems controlled by microprocessors that detect fires and initiate the extinguishing process using sensors. The fire extinguishing systems are either installed directly into the machine by Kraft & Bauer employees or are sold as a kit to the machine manufacturer.

In addition to its headquarters in Holzgerlingen (Baden-Württemberg, Germany), Kraft & Bauer operates a site in Bannwil (Switzerland) and 13 other service locations in Germany, Switzerland and Italy. Kraft & Bauer’s systems are used in machines that show an increased fire risk, such as millers, lathes and grinders that work with particularly high levels of precision and speed. Demand for these high-performance machines – and, as a result, for corresponding fire extinguishing systems – is rising. In addition, Kraft & Bauer benefits from a steadily growing service business with a broad installed base of more than 30,000 systems in Germany alone. The fire extinguishing systems must be regularly inspected and maintained.

POTENTIAL FOR DEVELOPMENT

Kraft & Bauer’s sales activities are currently concentrated in Germany, Austria, Switzerland and Italy. The company is aiming to expand its business with existing clients in these markets – both on the basis of the rising demand for fire extinguishing systems for new machines and by retrofitting older machine tools. In addition, Kraft & Bauer plans to attract new clients and push ahead with the company’s international expansion beyond the markets in which it is currently active.

FINANCIAL YEAR 2019

The favourable market environment supported the continued positive development of revenues and EBITDA in 2019 with high single digits growth rates. The management continues to focus on the recruiting and training of technicians, since the availability of qualified personnel is currently limiting the expansion rate to some extent.

OUTLOOK AND OBJECTIVES

Favourable trends towards machine automation and unsupervised operation as well as an increasing share of oil-cooled tooling machines bear potential for future growth. However, the order intake in the current OEM machine tool market may see a short-term softness in 2020. In the mid-term, Kraft & Bauer’s largest potential lies in the internationalisation of the business, especially the expansion to China and North America.

Responsible team member

Tom Alzin
Tom Alzin

Managing Director

Tom Alzin
Name:
Tom Alzin
Telephone:
+49 69 95787-219
E-Mail:

Tom Alzin

Managing Director

Tom Alzin joined Deutsche Beteiligungs AG in 2004 and became a Managing Director in 2011.

He holds a degree in Business Administration from the HEC Lausanne, and also studied at the London School of Economics and Political Science.

Tom Alzin has 15 years of experience in private equity. During that time, he gained a wealth of knowledge, particularly in the mechanical and plant engineering and in the services sector. Tom Alzin was involved in numerous acquisitions and realisations and also in the IPO of Homag. The realisations of Homag and Spheros, subsequent to their very successful development, are two of his most successful transactions. Tom Alzin also led the investment process in FDG, Pfaudler, Schülerhilfe, Telio, Polytech, duagon and Kraft & Bauer and sits on the advisory councils of the companies, which are still part of the DBAG portfolio.

Current portfolio companies

Former portfolio companies

Tom Alzin

Managing Director

+49 69 95787-219
tom.alzin(at)dbag.de