Expansion of services business
€70.2mn
Equity investment
USD275mn
Revenues 2017/2018
1.400
Employees 2018

KEY FACTS AT A GLANCE

  • Significant expansion of after-market activities through acquisitions
  • Optimisation of operations at European locations and opening of additional service centres in Europe and the USA
  • Revenues and earnings expected to substantially exceed the previous year’s levels

PFAUDLER INTERNATIONAL S.À R.L.

Investment by
DBAG Fund VI

€70.2MN

DBAG'S INTEREST

€13.3MN

MANAGEMENT BUYOUT
Shareholders:
DBAG FUND VI

93.6%

EQUITY SHARE BELONGING TO DBAG

17.8%

other shareholders

6.4%

First invested

DECEMBER 2014

REVENUES in US$mn

 

216

 

2015/2016

 

234

 

2016/2017

 

275

 

2017/2018

As of 30 June 2019

25

PERCENT

of the global market volume accounts for Pfaudler

In Pfaudler, we have again invested in a quality company operating in a global niche market. The potential for increasing expenditures in capital goods in Asia is another factor in favour of our investment in Pfaudler.

TOM ALZIN
MANAGING DIRECTOR

PROFILE

The companies in the Pfaudler Group manufacture glass-lined vessels and other glass-lined components for the chemical and pharmaceutical industries at nine locations in seven countries (Germany, Italy, the UK, the US, Brazil, China and India). Pfaudler also provides spare parts and repair services as well as the planning and construction of complete production facilities. Pfaudler is one of the few manufacturers that can develop and produce process-critical equipment that is compliant with the high quality standards for glass linings, based on its own knowledge and experience. The vessels and components are used as reactors for chemical processes and as storage tanks, columns and piping in chemical facilities. Its many years of experience in preparing the frit for glass lining and, not least, its employees’ expertise give the company a competitive edge, because key steps of the process are performed manually. At the same time, these advantages create high market entry barriers for potential competitors. Pfaudler accounts for some 25 percent of the market volume worldwide.

POTENTIAL FOR DEVELOPMENT

Pfaudler is a high-quality supplier in a global niche market. It has supplied countless components over the past decades, providing it with a solid foundation for the planned expansion of its services and spare parts business. Shortly after the start of investment, Pfaudler grew its product portfolio by acquiring a majority interest in Julius Montz GmbH. Montz manufactures plant components for use in the chemical and pharmaceutical industries and is a specialist in distillation technology, which can be used to break down different liquids and gases into their individual components or to purify them. Montz holds a leading position in the market for bioethanol, for example by developing state-of-the-art methods to manufacture bioethanol from cellulose. Montz and Pfaudler have a large number of customers in common.

FINANCIAL YEAR 2017/2018

Pfaudler’s revenues and earnings are expected to significantly exceed the previous year’s figures in the 2017/2018 financial year. The market situation in Europe remains challenging; at the same time, rising demand in China and the USA as a whole is driving a continuous improvement in order intake. In October 2017, Pfaudler added its product range and expertise by acquiring Normag AG Labor- und Prozesstechnik GmbH and interseal Dipl.-Ing. Rolf Schmitz GmbH, a supplier of sealing components. This means that Pfaudler has now acquired five companies since the start of the investment.

OUTLOOK AND OBJECTIVES

Pfaudler is pressing ahead with its work to optimise operating procedures at its European sites. This also involves the gradual relocation of its German production site, a project that is scheduled for completion in the 2018/2019 financial year. Given the weak demand in the company’s core business, measures to develop and expand the service business also remain a key objective. In order to achieve this, Pfaudler opened additional service centres in Europe and in the US, and is planning to make further acquisitions in this area.

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 14 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

Telio Management GmbH Polytech Health & Aesthetics GmbH Pfaudler International S.à r.l.

Former portfolio companies

Tom Alzin

Managing Director

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