Equistone sells E Winkemann to Cathay Capital

Oscar Geen
21 February 2018

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Equistone Partners Europe has sold German auto parts supplier E Winkemann to Cathay Capital Private Equity.

The deal ends a holding period of around six years for Equistone, which acquired the company from its family owners in May 2012. The company's management will retain its minority stake alongside the new owners.

Equistone made the divestment from its €1.5bn buyout fund, Equistone Europe Partners IV, which was 95% deployed as of September 2017.

Cathay drew capital from its €500m Sino-European Mid Cap Fund, which held a final close in December 2014. The vehicle was originally branded as Sino-French, aiming to invest 40% of its capital in China, 40% in France and the rest in Europe with a particular focus on Germany.

E Winkemann reported an increase in its turnover under Equistone's ownership, from €66m in 2012 to €91m in 2017 (including a 10% increase in the past year). The GP said it supported the company's progression from a family business to a successful mid-market company by decentralising its decision-making processes and investing in expansion.

Cathay will support the company in its next growth phase by developing its position in other markets, particularly Asia. The importance of Asian markets, and specifically China, to the automotive sector was highlighted in a recent Unquote analysis piece of private equity dealflow in the sector.

Previous funding
Equistone acquired E Winkemann in May 2012, supported by a debt package provided by Bayerische Landesbank, HSH Nordbank, IKB Deutsche Industriebank and WGZ Bank. Bernd Sent and Jürgen Westphal retained a minority stake and joint responsibility for the management of operations.

Company
E Winkemann manufactures precision-stamped metal parts for the automotive industry. The company's clients include Audi, BMW, Daimler, Robert Bosch and the VW Group. The company was founded in Plettenberg in 1938. It employs 380 people.

People
Equistone Partners Europe – Dirk Schekerka (head of DACH).
E Winkemann – Bernd Sent (chair).

Advisers
Company – Robert W Baird & Co (M&A); P+P Pöllath + Partners (legal).