DBAG backs Karl Eugen Fischer in MBO from Equistone

DBAG will intitally invest up to €23.5m for its co-investment, and will hold around 20% of the shares in the company. KEF's management will hold additional shares alongside the fund.

The deal is the fourth MBO structured by DBAG Fund VII since the fund began deploying capital in December 2016. Around one third of commitments have now been allocated.

With the fresh capital, KEF plans on boosting production capacity with the construction of an additional assembly hall at its German production site.

Under Equistone's ownership, the company extended its servicing business and broadened its customer base.

Previous funding
Halder, together with the company's management, acquired KEF from its second- and third-generation family founders, the Fischer family, in June 2006. The management received a minority stake in the company under the terms of the transaction.

Equita Fonds 3 then purchased a majority stake in the firm through a secondary buyout from Halder in June 2008.

Equita sold its majority stake in the company to fellow private equity house Equistone in August 2013. Equistone's investment was made via its Equistone Partners Europe IV vehicle. 

Company
Founded in 1940 and based in Burkundtstadt, KEF produces cutting machines that assemble plies and breakers, which give tyres their shape and provide stability when driving. It supplies to international tyre manufacturers, with a focus on emerging countries such as China.

The company's manufacturing operations are located at its headquarters, and it operates a distribution and service company both in the US and in China. KEF employs a staff of 545 and generated revenues of €83m in 2017.

People
Equistone – Marc Arens (partner).
DBAG – Rolf Scheffels (management board member).
Karl Eugen Fischer – Simone Thies (CFO).

Advisers
Vendor – Ashurst (legal); PwC (commercial due diligence); EY (financial due diligence, tax).

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• Topics
• Buyouts
• Exits
• DACH
• Industrials
• Germany
• Deutsche Beteiligungs AG
• Equistone Partners Europe
• Secondary buyout
• Ashurst
• PwC
• EY (Ernst & Young)