Development of a diversified group of companies
€5.6mn
Equity investment
€44mn
Revenues 2018 (EXP.)
210
Employees 2018

KEY FACTS AT A GLANCE

  • Extension of portfolio to cover industries not yet served
  • Successful completion of the business model transformation from a new construction project business into a service business
  • Good order situation, revenues and earnings expected to exceed the previous year’s levels

PLANT SYSTEMS & SERVICES PSS GMBH

Investment by
DBAG ECF

€5.6MN

DBAG'S INTEREST

€2.3MN

GROWTH FINANCING
Shareholders:
DBAG ECF

49.0%

EQUITY SHARE BELONGING TO DBAG

20.5%

other shareholders

51.0%

First invested

NOVEMBER 2012

REVENUES in €mn

 

41

 

2016

 

38

 

2017

 

44

 

2018 (EXP.)

As of 30 September 2018

15

PERCENT

increase in order intake expected for the financial year 2018

Industrial services represent a growing market – especially if you are able to offer service, engineering and project business from a single source. This means that there are good business opportunities opening up in this sector in particular.

GUSTAV EGGER
MANAGING DIRECTOR

PROFILE

Plant Systems & Services PSS GmbH (PSS) is the holding company for a group of specialised companies that provide services for the energy and process industry, such as for power plants and chemical companies, the steel and chemicals industry, waste incineration plants and district heating suppliers. The group is composed of four companies, including Etabo Armaturentechnik GmbH, which has its headquarters in Bochum, Germany and has more than 40 years of experience in construction and maintenance of pipelines for power plants and industrial sites in Germany. The group also comprises three smaller companies in other locations in North Rhine-Westphalia and in eastern Germany. The range of services includes engineering, plant assembly and commissioning, servicing, repair and maintenance, and the retrofitting and conversion of existing facilities. One of the group companies specialises in installing pipelines in storage tanks and in providing maintenance for entire tank farms.

POTENTIAL FOR DEVELOPMENT

By investing in PSS, Deutsche Beteiligungs AG intends to participate in the growth of the group companies’ individual end markets. Factors driving that growth include the age of existing power plants, plans to decommission power plants and the general trend toward outsourcing industrial services to external specialists. Similar opportunities for the provision of services can be found in the oil and chemical industries, which are faced with ever more stringent safety requirements. The buy-and-build strategy pursued at the start of the investment has now been completed: the product portfolio has been expanded, the company’s regional coverage has been enhanced and the service business has virtually replaced the new construction business.

FINANCIAL YEAR 2018

The market environment in which PSS operates is changing: customers from the energy supply industry are faced with substantial cost pressure and the number of new construction and maintenance orders being placed is on the decline. This has resulted in the consolidation of the market segment and the restructuring of larger major competitors. Although PSS is benefiting from this situation thanks to its flexibility as a mid-market company, it is also facing price pressure. On the other hand, the newly acquired customers from the industry value the comprehensive portfolio of PSS, which led to a significant year-on-year increase in order intake in the 2018 financial year. With this in mind, revenues and earnings are expected to be higher than in the previous year.

OUTLOOK AND OBJECTIVES

In 2019, PSS intends to benefit from the now significantly improved order intake, which also includes business from applications not previously served. Therefore, the company again expects to see an increase in revenues and earnings.

Responsible team member

Gustav Egger
Gustav Egger

Managing Director

Gustav Egger
Name:
Gustav Egger
Telephone:
+49 69 95787-300
E-Mail:

Gustav Egger

Managing Director

Gustav Egger joined Deutsche Beteiligungs AG in 1989 and has been a Managing Director since 1992.

After receiving his degree in Engineering Management with a major in Mechanical Engineering from the University of Berlin, he spent six years at Deutsche Bank focusing on the financing of large-scale international projects in infrastructure and the commodity sector as well as US-based cogeneration power plants.

His career at DBAG started in 1989 as an Investment Manager for 14 portfolio companies in a variety of sectors and he invested in the first privatisations after Germany's reunification. From 1992, as head of Central Investment Controlling, he organised and installed the risk monitoring processes for more than 120 portfolio companies spread over ten DBAG branch offices. In this position, he was also a member of the DBAG Investment Committee. From 1995, in his role as CFO, he additionally took on responsibility for Finance and Accounting. Along with DBAG's independence from Deutsche Bank which commenced in 1997, he negotiated the entry of new handpicked anchor shareholders and investors. Linked to that was the establishment of capital market communications and the first corporate actions. To accelerate DBAG's independence, he organised the placement of DBAG's first closed-end buyout fund for international investors. Subsequent to the successful fund-raising for DBAG Fund V and DBAG Expansion Capital Fund, he retired from his role as CFO and has since focused on the development of the expansion capital business. In that capacity, he is currently monitoring and supporting the portfolio companies in the telecommunications, information technology and media sectors.

Gustav Egger

Managing Director

+49 69 95787-300
gustav.egger@dbag.de