Pinova sells stake in Deconta

Harriet Matthews
24 February 2020

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Pinova Capital has sold its stake in building redevelopment business Deconta to family-owned holding company Schauenburg Group, ending a seven-year holding period.

Joern Pelzer, partner at Pinova Capital, told Unquote that the sale process took around one year, with signing taking place in December 2019 and the closing in January 2020. He explained that the GP approached a number of family offices as potential buyers that would be able to hold the company long-term.

The company's founder, Wilhelm Weßling, also sold his shares in an earn-out scheme and has retained a minority stake in the company, Pelzer said.

Pelzer told Unquote that the GP achieved returns in the range of its target 2.5-3x money.

The GP bought a minority stake in the business in September 2012, deploying equity from Pinova Fund I, which held a final close in October 2010 on €115m. WGZ Bank provided a debt package for the acquisition comprising 20% of the deal value, according to Unquote Data. Co-founder and manager Wilhelm Weßling retained a stake in the business.

During the investment period, Pelzer told Unquote that the GP invested its cashflow in the business, increasing the company's headcount and assisting with the expansion of its product range. The company's revenues were doubled, he added. There was no change in the size of the GP's equity stake during the investment period, Pelzer said.

Pelzer added that Pinova plans to begin fundraising for its third vehicle at the end of 2020 or the start of 2021, targeting €250m and with a hard-cap of €300m. The GP's latest vehicle, Pinova Capital Fund 2, held a final close on €180m in January 2017, surpassing its target of €150m.

Company
Deconta specialises in the removal of asbestos, mould, dust and chemicals for building redevelopment projects. The company provides decontamination services and equipment. Founded in 1998, the company has subsidiaries in France, Italy, Spain, Switzerland, Australia and the UK. It generates revenues of €20m and has a headcount of 130, compared with 50 when Pinova originally invested.

People
Deconta – Wilhelm Weßling (founder, managing director).
Pinova Capital – Joern Pelzer (partner).

Advisers
Company – MCF (corporate finance); Menold Betzler (legal).
Equity – Transaction Law, Jörg Windt (legal); BPG (tax, financial due diligence).