DEEN
Expansion of services business
€64.3mn
Equity investment
USD234mn
Revenues 2016/2017 (Provisional)
1.400
Employees 2017

KEY FACTS AT A GLANCE

  • Challenging market conditions persist
  • Operating processes optimised at European sites
  • Integration of Montz starting to bear fruit; earnings up on prior year and budget

PFAUDLER INTERNATIONAL S.À R.L.

Investment by
DBAG Fund VI

€64.3MN

DBAG'S INTEREST

€12.2MN

MANAGEMENT BUYOUT
Shareholders:
DBAG FUND VI

96.0%

EQUITY SHARE BELONGING TO DBAG

18.2%

other shareholders

4.0%

First invested

DECEMBER 2014

REVENUES in US$mn

 

127

 

2014/2015

 

216

 

2015/2016

 

234

 

2016/2017

As of 30 September 2017

1 Truncated financial year
2 Provisional

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 market leader in a global niche market. It has supplied countless components over the past decades, and this history is 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 bio ethanol from cellulose. Montz and Pfaudler have a large number of customers in common, which they previously supplied separately from each other with different but complementary technologies. By acquiring Montz, the Pfaudler Group can now offer its customers a broader product portfolio from a single source.

FINANCIAL YEAR 2016/2017

Despite sustained weak market conditions, Pfaudler’s revenues are likely to be higher than originally planned in the financial year 2016/2017. The company was able to achieve a year-on-year increase in incoming orders. The integration of Montz’s products into Pfaudler’s sales process, which has now been completed, and the associated expansion into foreign markets are starting to bear fruit: in the financial year 2016/2017, Montz already contributed to earnings, which also outstrip the latest expectations.

OUTLOOK AND OBJECTIVES

In response to the challenging market conditions, Pfaudler is still forging ahead with measures to opti mise operating processes at its European sites. This also involves the gradual relocation of its German production site, a project that is scheduled for completion by the end of 2018. 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 is planning to open additional service centres in Europe and in the US.

Responsible team member

Tom Alzin
Tom Alzin

Managing Director

Tom Alzin
Name:
Tom Alzin
Investment focus:
Management buyouts
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 studied Business Administration at HEC Lausanne and at the London School of Economics.

Tom Alzin has more than twelve 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 and duagon and sits on the advisory councils of the companies, which are still part of the DBAG portfolio.

Current portfolio companies

Duagon Holding AG 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@dbag.de