DBAG secures majority stake in Frimo

Listed investor DBAG stated it will invest up to €15m from its balance sheet for the transaction. The remainder will be provided by DBAG Fund VI, predecessor to the recently-closed €1bn seventh fund, and Frimo managing partners Hans-Günter Bayer and Rainer Wittkorn. The managers will reinvest in Frimo and together hold a 20% stake.

The deal was sourced proprietarily and negotations took four months. DBAG aims to continue the company's internationalisation, especially in the US and Canada, to improve the product portfolio and to make add-on acquisitions.

The transaction is expected to be completed by late September.

Company
Founded in 1962 and headquartered in Lotte, Frimo is a developer of tooling and machinery for plastic and composites component production, mainly supplying the car industry. Other customers include the aviation and chemicals industries.

The business operates from 15 locations with 1,300 employees and has an annual turnover of €200m.

People
DBAG – Torsten Grede (spokesperson for the management board).
Frimo – Hans-Günter Bayer (chairperson of executive board).

Advisers
Equity - Allen Overy (legal); Goetz Partner (commercial due diligence); EY (financial due diligence, tax); ERM (ESG); Marsh (insurance due diligence); Linklaters (legal); Gleiss Lutz (risk due diligence).

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