DEEN
Development of a diversified group of companies
€5.6mn
Equity investment
€37mn
Revenue 2017 (EXP.)
210
Employees 2017

KEY FACTS AT A GLANCE

  • Tapping into new sectors
  • Successful completion of the  business model transformation from a new construction project business into a service business 
  • Good level of orders; earnings expected to exceed prior-year level in 2017

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

 

37

 

2015

 

41

 

2016

 

37

 

2017 (EXP.)

As of 30 September 2017

98

PERCENT

is the new “Service” core business likely to contribute to total revenues in 2017

Industrial services are a growth market – especially for companies able to act as a one-stop provider of industrial services and project management. This is a sector that creates excellent investment opportunities.

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 and steel companies, 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

Factors driving PSS’s business include the age of existing power plants, plans to decommission power plants and the general trend toward outsourcing industrial services to exter nal specialists. Similar opportunities for the provision of services can be found in the oil and chemical industries, which are faced with ever stricter safety requirements. The buy-and-build strategy pursued at the start of the investment has now been implemented: the product portfolio has been expanded and the company’s regional coverage has been enhanced; the service business has virtually replaced the new construction business.

FINANCIAL YEAR 2017

PSS operates in a highly competitive market environment. Customers in key industries are faced with substantial cost pressure and are placing fewer orders. This has resulted in the consolidation of the market and the restructuring of larger major competitors. Although PSS is benefitting from this situation thanks to its flexibility as a mid-market company, it is also facing price pressure. The postponement of a major order means that the company is unlikely to achieve revenues on par with the previous year in 2017. Current projections suggest that earnings will nevertheless out-strip the prior-year level.

OUTLOOK AND OBJECTIVES

In 2018, PSS intends to benefit from the successful implementation of its market entry in eastern and southern Germany over the last two years. An improved cost base should translate into higher profitability; the company expects its revenues and earnings to rise.

Responsible team member

Gustav Egger
Gustav Egger

Managing Director

Gustav Egger
Name:
Gustav Egger
Investment focus:
Expansion capital investment
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