Brockhaus Capital Management plans flotation

BCM focuses on investments in technology-backed Mittelstand companies in Germany, acquiring majority stakes and aiming to make long-term investments.

Its private placement with institutional investors will comprise of newly issued shares from a capital increase only, according to the same statement.

To support its growth, the GP plans to use gross proceeds of €100m (plus 15% greenshoe) for its acquisition pipeline.

BCM reported revenues of €54m and EBITDA of €16m in 2019. In Q1 2020, the firm saw pro forma revenue growth of 20% and adjusted EBITDA of €2.6m, although it saw a single-digit percentage revenue decline in H1 2020 overall due to the impact of the coronavirus pandemic.

BCM's management currently own 33% of the share capital in the firm. They will be subject to a lock-up period of two years, while other existing shareholders will be subject to a lock-up period of 180 days.

Citi and Jefferies are acting as joint global coordinators and joint bookrunners, along with Commerzbank as joint bookrunner.

BCM was formed as a separate corporate entity from Brockhaus Private Equity at the end of 2017, following the end of the investment period for the firm's €80m third fund. The rationale behind the change in structure was for the firm to move from a fund-based model to become a stock corporation with an evergreen investment structure.

Since its inception, BCM has acquired particle measurement device producer Palas and IT component producer IHSE.

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