DBAG exits Broetje-Automation

DBAG, a majority shareholder since 2012, as well as minority shareholder Dürr have both exited the group. The deal, through which Shnaghai Electric acquired the entire share capital of Broetje-Automation, is estimated to be in the region of €200m, €174m of which were paid in equity, a source familiar with the matter told unquote".

The buyer also agreeed to settle a €12m outstanding financial debt to a creditor on behalf of the target group. 

Over the holding period, Broetje-Automation's turnover increased from €83m to €143.6m, while its staff number grew from 450 to 850. With the GP's backing, the group broadened its product and services range and internationalised its customer base, reaching out to China with a new sales site in Shanghai.

One of the most important acquisitions for the group was that of Dürr Group's aircraft assembly technology business in 2014 - a transaction through which Dürr took an 11% stake in the company. Last year, Broetje-Automation also moved to new headquarters in Rastede.

Shanghai Electric, which posted $11.5bn in revenues in 2014, will aim to support the company's development in its key markets of Europe, the US, Japan, Russia and China. This new investment is aimed at developing the group's presence in the aviation industry and establish new partnerships with Broetje-Automation's existing clients, such as Airbus and Boeing.

DBAG did not disclose specific returns but said the deal exceeded its usual return targets.

Previous funding
In January 2012, DBAG took over Broetje-Automation from Claas for an undisclosed amount. The investment was made from DBAG Fund V, and DBAG also planned to invest €6m from its balance sheet at the time.

With the funding, Broetje looked to expand into the Chinese and Russian markets and to develop new product ranges such as equipment for the wind energy sector.

Company
Founded in 1979 as a subsidiary of heating producer August Broetje, Broetje-Automation develops and produces machines and complete lines for the automated production of aircrafts. It had become part of the Claas Group in 2002 and generated around 3% of the group's turnover prior to DBAG's acquisition.

Broetje-Automation is based in Wiefelstede and owns a production site in Jaderberg as well as sales offices in the US and China.

The group counts 850 employees and is forecasting a €195m turnover for 2016.

People
DBAG - Rolf Scheffels (board member).

Advisers
Vendor - CMS Hasche Sigle, Dr. Hendrik Hirsch, Dr. Holger Pattberg (legal); KPMG, Ines Berger (financial due diligence); Houlihan Lokey, Nicolas Zintl, Daniel Trawnitschek, Niclas Niemeyer (M&A). 

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