Acquisition German specialty company in electrical and mechanical process systems

• The company acquired is a company specialized in the design and implementation of electrical and mechanical process systems for water economy and wastewater treatment, for industrial and transportation facilities, as well as for power supply networks.
• The target company is located in Germany
• The acquired company has revenues of approx. 15 million EUR
• The buyer is a fast-growing midsize holding company deploying a buy-and-build strategy in the industrial services industry
• CFIE business acquisition input: The CFIE M&A team member helped in deal sourcing

Here you find a description of a business acquisition of an engineering company in Germany.

The target company is specialized in the design and execution of electrical and mechanical process systems. It develops complex systems for water economy and wastewater treatment for industrial and transportation facilities, as well as for power supply networks. Engineering is a substantial focus of the target company’s scope of activities: Reliable system operation requires experience and know-how from the design stage to the system installation. The company’s engineers and technicians design electrical and mechanical process systems, as well as facilities for process analysis, management, and control. They design and develop individual software for process control and monitoring.

The target company has a very good track record and showed some impressive growth. However, future growth would demand more capital and the company would not be able to sufficiently generate capital by itself. Also its shareholders had reached an age where it was doubtful if future investment would have an adequate return for them.

The CFIE M&A team helped the acquirer in sourcing this deal through market research and analysis, initiating contacts and conveying the buyer’s strategy to the target company’s shareholders. Find more details below.

The market for industrial services is rapidly changing. The buyer’s aim is to create a leading “Mittelstand”-Champion in this industry over the coming years. To do so, it strives to unite excellent businesses and respond to the trends and forces that will shape the industry in the future. The buyer focusses on high-end technical services that are crucial to the performance of an industry. It intends to bundle its resources in specific subsectors to provide its customers with industry leading services in German speaking countries.

Frits Verheesen helped the acquirer based on a buy-side mandate in sourcing this deal. Through desktop research, market insight and personal meetings, the target company was identified and discussed with the acquirer. The initial contact with the target company was through Frits Verheesen who sold the target company’s shareholders based on the acquirer’s strategy. The target company realized the benefits of the combination.

Feel free to contact us for further details about this business acquisition in Germany. If you are looking for acquisitions or business sales of service companies in other countries than Germany it is also good to contact us. We know other available targets as well as investors/buyers in Europe or would be able to find the ones that suit you.