DBAG acquires Romaco

The vendor is a US supplier for engineered equipment, Robbins & Myers Inc. DBAG has invested €8m from its balance sheet in return for a 19% stake.

The deal emerged through direct contact with the company supported by an industry expert. The investor was attracted to the company's core business of packaging machinery and prospects for further growth.

The investment will be used for regional expansion into emerging markets and the US, as well as development of the application know-how for attractive markets such as the cosmetics industry.

Romaco's management and DBAG fund V will hold the remaining shares.

Debt
A debt structure was provided for the transaction.

Company
Romaco was founded in the 1990s and is based in Karlsruhe, Germany. About two-thirds of the revenues come from the firm's packaging machines used in the pharmaceutical and cosmetic industry. The other arm of the business is process technology, providing machines and complete processing lines primarily for the food, healthcare and cosmetic industries.

The company has an expected turnover of €100m for 2011 and employs about 450 members of staff.

People
Dr Rolf Scheffels, Jochen Baumann, Lucas Herbert, Maria Miks managed the deal for DBAG.

Advisers
Equity – CMS Hasche Sigle (Legal); DC Advisory Partners, Gerd Bieding, Norbert Schmitz, Björn Lauschke, Thorsten Weber (Corporate finance); Ernst & Young (Tax & financial due diligence); Funk-Gruppe (Risk & insurance due diligence); ERM (Environmental due diligence); Androschin & Partner (Commercial due diligence).

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• Topics
• DACH
• Buyouts
• Industrials
• Germany
• Ernst & Young