DBAG acquires stake in Duagon

According to a statement, the deal will see the GP buying all of the company's shares initially. Subsequently, the management team will reinvest and acquire a minority stake.

As part of the transaction, the GP will draw down around €60m from its DBAG Fund VII vehicle and an additional €14m equity ticket as co-investment from its balance sheet (that last portion securing a 22% stake), according to a source close to the matter. The total amount of equity provided is €75m and the fund manager will retain a controlling stake in the business.

Following the deal, the company aims to boost its international expansion and extend its product range.

The deal is the first MBO that the GP backs in Switzerland and the third completed via its DBAG Fund VII in six months.

DBAG held a €1bn final close for its DBAG Fund VII vehicle in July 2016. Currently, the fund is 20% invested.

Company
Founded in 1995 and headquartered in Dietikon, Duagon provides network components for data communication in railway vehicles. The company's products enable communication between individual sub-systems such as doors, brakes, air-conditioning units and central processors.

In 2017, the company expects to generate CHF 20m in revenues and it has 60 employees.

People
Deutsche Beteiligungs AG – Rolf Scheffels (member of the board of management); Tom Alzin (managing director); Malte Hinz (senior investment manager); Maximilian Hegel (investment manager).
Duagon – Markus Dilger (CEO).

Advisers
Equity – Baker McKenzie (legal); Alantra (M&A); PwC (financial due diligence); Marsh (insurance due diligence); ERM (ESG due diligence); Androschin & Partners (commercial due diligence).
Vendor – Bär & Karrer (legal); Credit Suisse (M&A).
Company – Bär & Karrer (legal).
Debt – Homburger (legal).

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