NPM buys Dieseko from Greenfield

Ellie Pullen
29 November 2013

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NPM Capital has bought a 65% stake in Dutch foundation equipment manufacturer Dieseko Group, allowing Greenfield Capital Partners to fully exit the business.

According to Dutch daily Financieel Dagblad, the deal gives Dieseko an enterprise value of somewhere between €60-100m, equivalent to 5-8x EBITDA.

NPM's plans for the business include strengthening Dieseko's position in the Chinese and Brazilian markets, as well as expanding the company's operations into new international markets.

The company will also begin exploring an acquisitive growth strategy and will look to expand its service operations globally through bolt-ons. Dieseko currently outsources its sales and support services operations to independent dealer companies.

The group also hopes to further develop its product range, again through potential future acquisitions.

Previous investment
Dieseko was established through the merger of Piling & Vibro Equipment (PVE) and International Construction Equipment (ICE) in October 2008. The previous year, Greenfield had acquired a 50% stake in ICE. The firm then upped its stake in the newly-merged business to become Dieseko's largest shareholder.

Company
The original PVE-Dieseko company was founded in 1974, while ICE was established in 1977. The two companies merged in 2008 to create Dieseko Group as it operates today.

The group employs 120 staff and is headquartered in Sliedrecht, with additional offices in Singapore, Brazil and China. Dieseko generated revenues of €50m in 2012, as well as an EBITDA of €12.5m.

Dieseko specialises in the manufacturing of hydraulic vibratory equipment for the foundation industry. The group's machinery is designed for use in sheet pile driving and extracting, and are bought or rented by construction and foundation companies to install port quays, viaducts and foundation piles for offshore oil platforms and windfarms.

Clients include Ballast Nedam, Heijmans, BAM and Petrobras.

People
Ton Kraak is the CEO of Dieseko. NPM's Rutger Ruigrok worked on the deal for the firm.