Hg sells Teufel to Naxicap

The GP made the divestment from HgCapital 6, a £1.87bn vehicle that held a final close in December 2009 and was 96% deployed by December 2016, according to Unquote Data.

The sale ended a holding period of close to eight years after Hg acquired the company for an equity investment of €70m.

Under Hg's ownership the company has expanded its revenues from €40m to €100m. The GP supported Teufel's acquisition of Raumfeld in 2010, and backed organic growth initiatives such as the introduction of new categories and technologies, including wireless streaming, headphones and portables.

Equistone lost out in the final round of the auction for Teufel, run by corporate finance house William Blair, according to Unquote sister publication Mergermarket. The company was marketed from adjusted EBITDA of €20m, according to the report.

Previous funding
Riverside Europe acquired Teufel in October 2006 for an enterprise value of less than €50m. It divested the company to Hg in 2010, generating a 6x return and 57% IRR on its original investment.

Company
Founded in 1979, Teufel designs, markets and retails its own brand of audio speaker systems directly through its B2C internet platform. Teufel is focused on the mid-to-high-end segment of the market and outsources its production to China. The company employs 200 staff and generates revenues of more than €100m.

People
Hg – Justin von Simson (managing partner).
Teufel – Sascha Mallah, Joachim Wimmers (managing directors).

Advisers
Equity – William Blair (corporate finance).

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• Topics
• Exits
• Buyouts
• DACH
• Consumer
• Germany
• HgCapital
• Naxicap