CGS-backed Photonics bolts on LS Laser Systems

The transaction is the first bolt-on made by the company since buy-and-build specialist CGS bought a majority stake in the industrial laser technology business in May 2018.

LS Laser Systems was an attractive target for Photonics due to its specialised product range and its blue-chip customers. As the companies both have similar customers, CGS sees potential for cross-selling opportunities.

Managing partner Antonio Cives told Unquote that LS Laser Systems was limited by its size. He believes CGS can scale the company, particularly in this growing market.

Cives told Unquote that CGS is currently in exclusive talks with a target company that would be its fourth portfolio company in its CGS IV fund, and is in close negotiations for a bolt-on for another portfolio company, Eol. The firm is also considering a second, larger bolt-on for Photonics that will complement the company's product portfolio.

Previous Funding
CGS bought InnoLas Solutions in 2018 using funds from CGS IV, which held its final close on CHF 240m in June 2018. The fund targets companies with target revenues of CHF 10-80m.

The company has since created a holding company for the buy-and-build strategy, which is Photonics.

This transaction was not financed by fresh equity from the firm. Photonics generates sales of €25m.

Company
Founded in 1993 and based in Munich, LS Laser Systems employs approximately 20 people. The company develops and produces active and passive laser trimming systems, particularly those used in the creation of circuit boards.

People
CGS Management – Antonio Cives (managing partner).
Photonics Systems Group – Maximilian Zöpfl (co-CEO); Werner Senser (co-CEO).

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• Topics
• Portfolio management
• DACH
• Industrials
• Build-up
• Buy-and-build
• CGS Management
• Germany