HQ Equita buys majority stake in Muegge

The acquisition remains subject to the approval of the German competition authority.

The deal was structured via an auction process, which took around four months from initial teasers being circulated to signing.

The majority stake was acquired via a buyout and the management will own a stake in the newly founded holding company, according to a statement.

Following the investment, Muegge intends to develop its technology and sales organisation, as well as expand internationally.

The GP invested via Equita V, which held a final close in April 2019 on €308m. The fund invests in medium-sized businesses in the DACH region with revenues of €20-150m. It has now made six investments, and expects to make one more platform investment and one to three add-ons during the remainder of its investment period.

The deal is currently all-equity, although financing will be considered in future, particularly to finance bolt-ons for the company.

Company
Founded in 1986 and based in Reichelsheim, Muegge produces industrial microwave components, systems and plasma sources. Its products are used in areas including the production of food, artificial diamonds and semiconductor components. They are also used in chemical applications such as molecule extraction and hydrogen production.

The company expects to generate revenues of around €25m in 2020.

People
HQ Equita – Frank Schäfer (partner).
Muegge – Klaus Baumgärtner (CEO).
Meyer Burger Technology – Gunter Erfurt (CEO).

Advisers
Equity – Goetzpartners (commercial due diligence); Deloitte (financial due diligence); GleissLutz (legal, tax).
Vendor – Ipontix (M&A); Schmitz Knoth (legal).
Company – Waldeck Rechtsanwälte (legal).

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• Topics
• Buyouts
• DACH
• Industrials
• Germany
• HQ Capital