DEEN
Expansion of services business
€73.5mn
Equity investment
USD224mn
Revenues 2016/2017
1.400
Employees 2016

KEY FACTS AT A GLANCE

  • Challenging market conditions persist
  • Operating processes optimised at European sites
  • Montz products integrated into sales process

PFAUDLER INTERNATIONAL S.À R.L.

Investment by
DBAG Fund VI

€73.5MN

DAVON DBAG

€14.0MN

MANAGEMENT-BUY-OUT
Shareholders:
DBAG FUND VI

96.0%

thereof DBAG

18.2%

other shareholders

4.0%

First invested

DECEMBER 2014

REVENUES in US-$mn

 

127

 

2014/2015 (Truncated financial year: 1.1.-31.8.2015)

 

216

 

2015/2016

 

224

 

2016/2017 (EXP.)

As of 30 June 2017

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

MECHANICAL ENGINEERING COMPANY FOR THE PROCESSING INDUSTRY

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) on four continents. Pfaudler also provides spare parts and repair services as well as planning and constructing complete production lines. The vessels and other components are used as reactors for chemical processes and as storage tanks, columns and piping in chemical facilities. Pfaudler is one of the few manufacturers that can engineer and produce process-critical equipment that sets high quality standards for glass lining based on its own knowledge and experience. Thanks to the company’s many years of experience in preparing the frit for glass lining and its employees’ know-how, it has competitive edge, because key steps of the process are done manually. At the same time, these advantages create high market entrance barriers for potential competitors. Pfaudler accounts for some 25 percent of the market volume.

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 its services and spare parts business, which the company aims to expand.

Shortly after the start of investment, Pfaudler grew its product portfolio by acquiring a majority interest in Julius Montz GmbH. Like Pfaudler, Montz designs, develops and manufactures plant components for use in the chemical and pharmaceutical industries and is specialised in distillation technology, which can be used to break down or clean different liquids and gases. 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, which they previously supplied separately with different but complementary technologies. By acquiring Montz, the Pfaudler Group can now offer its customers a broader product portfolio.

2014/2015 FINANCIAL YEAR

Due to the changed and more difficult competitive environment, especially in Europe, pressure on prices, and consequently on costs, has increased. Revenues and earnings were therefore slightly below the previous year’s figures.

OUTLOOK AND OBJECTIVES

By investing in optimising operations, in the company’s core competence of glass lining technology, in research and development and in sales, Pfaudler should grow profitably in 2015/2016. This also involves changes at the company’s locations: a global competence centre for glass lining is being planned at its German site in Schwetzingen; at the same time, all key coating activities in Europe will be based there.

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 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