DBAG backs Vitronet MBO

DBAG will use capital from DBAG ECF as well as a co-investment of €8.5m directly from its balance sheet. The remaining 60% stake will be held by management and senior executives.

This is the first time DBAG ECF has structured a management buyout after expanding its investment criteria last year to allow these transactions. The fund's equity capital investments range from €10-30m and previously invested only in minority stakes in family-owned businesses.

Previous funding
Ventizz Capital Partners bought a 44.2% stake in Vitronet, then Conlinet, for an undisclosed sum in March 2010 using capital from Ventizz Capital Fund IV. It then sold 15% of the company to RWE Deutschland in July 2011. After the deal, Ventizz still held 61% of the company. Ventizz then sold its remaining stake to two private individuals in 2014.

Company
Founded in 2001 and headquartered in Essen, Vitronet supports businesses in fibre-optic broadband buildouts and network upgrades. Its client base mainly includes energy suppliers and municipalities. The company projects revenues of around €36m for 2017, based on current orders, and double-digit revenue growth is forecast in the coming years. The company employs around 100 people.

People
Deutsche Beteiligungs AG – Torsten Grede (board spokesman).
Vitronet Projekte – Thomas Simon (CEO).

Equity – Contaq Consulting, Helmut Kohl (commercial due diligence); Bird & Bird, Hans Peter Leube (legal); PwC, Peter Gröniger (financial due diligence); Ann-Kristin (tax); ERM, Werner Schulte (ESG due diligence); Gleiss Lutz, Eike Bicker (legal); Marsh, Nicolas Paulus (insurance due diligence); Taxgate, Thomas Elser (tax); Reed Smith, Tilman Siebert (legal).

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• Topics
• Buyouts
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• Deutsche Beteiligungs AG