Innova sells Donako to Rudolf Weinberger Holding

Innova acquired a 70% stake in Donako in 2006 through the Innova/3 fund.

Innova prepared to exit the business last year, having come to the end of a six-year cycle. The GP hired DC Advisory to find a buyer among trade players exclusively. It told unquote" that it had drawn up a long list of suitable candidates, though it found interest from Asian trade players underwhelming, partly referring to India and China's economic slowdown.

The GP had planned a trade sale for the business from the outset, it said. This was partly due to a general lack of interest from private equity firms in manufacturing businesses, particularly ones that produced parts and not end-products, Innova added.

Previous investment
Innova bought its 70% stake in the business in 2006 from two of the three company owners, with Franciszek Zeleznik (Zeleznik Industrie Consulting GmbH) staying on as a minority shareholder.

The backers introduced an investment programme with further loans and growth capital provided by Bre Bank, increasing production capacity in order to fulfill demand. Donako's turnover reached €40m in 2012, from less than €30m in 2006, and its EBITDA doubled over the holding period. Staff numbers also almost doubled, from less than 250 people in 2006 to 450 staff in 2013.

Company
Donako is an industrial manufacturing company specialised in precision laminations and tools for electric generators and motors. Donako targets the energy sector, notably leveraging its focus on electromagnetic steel processing.

Founded as DZWME Dolmel in 1947, the company became independent from Swedish engineering firm ABB in 2000.

People
Franciszek Zeleznik is Donako's founder and chairman, and owns investment company Zeleznik Industrie Consulting. Managing director Joanna Simonowicz led the exit on behalf of Innova.

Advisers
Equity – Grant Thornton (Financial due diligence); CMS Reich-Rohrwig Hainz (Legal).
Vendor – DC Advisory (Corporate finance); Greenberg Traurig (Legal).

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