Organic growth through geographic expansion, inorganic growth through acquisitions
€23.1MN
EQUITY INVESTMENT
€73MN
REVENUES 2019 (pro forma, exp.)
90
EMPLOYEES 2019

KEY FACTS AT A GLANCE

  • Construction, operation, upgrading and subsequent maintenance of FTTH infrastructure (FTTH: Fibre to the home, fibre optic lines to the home)
  • Rising demand for high-performance internet connections and fibre infrastructure
  • Expansion of business as operator of fibre optic networks for network operators and housing industry

STG Group

Investment by
DBAG ECF

€23.1MN

DBAG´S INTEREST

€9.6MN

MANAGEMENT BUYOUT
SHAREHOLDERS:
DBAG ECF

99.1%

EQUITYSHARE BELONGING TO DBAG

36.6%

OTHER SHAREHOLDERS

0.9%

FIRST INVESTED

NOVEMBER 2019

REVENUES IN €MN

 

15

 

2017

 

16

 

2018

 

73

 

2019 (pro forma, exp.)

As of 31 December 2019

3

add-on acquisitions realized in first few months after closing

Together with STG, we want to develop our group of companies and contribute to the FTTH expansion in Germany.

RAGNAR GEERDTS
MANAGING DIRECTOR

PROFILE

STG Group (STG) was formed in 1989 from a construction company established more than 60 years previously. Since then, Bochum-based STG has established itself as a service provider in the telecommunications sector. Its product range not only comprises construction of fibre-to-the-home (“FTTH”) infrastructure, but also the operation, upgrade and subsequent network maintenance. Municipal utilities, municipalities themselves, and network operators are among STG’s clients. Furthermore, STG maintains inhouse network infrastructures for real estate companies: proprietary internet and TV products run on these networks, as well as third-party products.

POTENTIAL FOR DEVELOPMENT

The demand for high-speed internet connections – and thus the need for fibre-optic links – is increasing continuously. However, only 7 per cent of German households are currently connected to fibre-optic networks – the EU average is three times as high. STG is in a position to not only benefit from the resulting strong market growth organically, by expanding geographically, but also within the scope of a buy-and-build strategy, helping the company to grow inorganically via acquisitions. In addition, STG can expand its business as an operator of fibre-optic networks for network operators and the housing sector. DBAG will support STG in realising its growth potential by providing the necessary capital and its long-standing experience in the expansion of fibre-optic networks.

FINANCIAL YEAR 2019

Following the closing of the investment in November 2019, STG Group was able to acquire three additional companies during the first few months of our holding period. With Leinberger, ISKA and IMD, STG Group significantly expanded its capacity for underground construction and civil works and hence laid the foundation for its future growth capabilities.

OUTLOOK AND OBJECTIVES

For 2020, management targets to continue its successful growth path on both revenues and earnings level. The future development of the core business is predominantly driven by the construction segment, fuelled by the market’s strong demand overhang. STG Group aims to expand its business with existing and new customers also in other regions in Germany via organical and anorganical growth.

Responsible team member

Ragnar Geerdts
Ragnar Geerdts

Managing Director

Ragnar Geerdts
Name:
Ragnar Geerdts
Telephone:
+49 69 95787-172
E-Mail:

Ragnar Geerdts

Managing Director

Ragnar Geerdts joined Deutsche Beteiligungs AG in 2012 and became a Managing Director in 2017.

Ragnar Geerdts has over 13 years of experience in private equity and mergers and acquisitions. He has extensive knowledge of the automotive supplier and telecommunications industries and in mechanical and plant engineering. He was involved in numerous investments and disinvestments, including DNS:NET, Frimo, Formel D, inexio, mageba, Oechsler and Unser Heimatbäcker. Ragnar Geerdts also led the investment process in vitronet, netzkontor nord, von Poll Immobilien, BTV Multimedia and FLS and sits on the advisory councils of these companies. Before joining Deutsche Beteiligungs AG he worked in the area of M&A at Bayer AG and at Deutsche Post AG.

Ragnar Geerdts holds a degree in Business Administration from Freie Universität Berlin, and also studied at the Beijing Foreign Studies University.

Current portfolio companies

Former portfolio companies

Ragnar Geerdts

Managing Director

+49 69 95787-172
ragnar.geerdts(at)dbag.de