Deutsche Beteiligungs AG acquires Multimon

Harriet Matthews
14 August 2020

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Deutsche Beteilgungs AG (DBAG) has acquired Multimon, a provider of fire safety systems and equipment, marking the first deal from its eighth fund.

The firm will also invest €8.1m in equity from its balance sheet, corresponding to a 17% share in the business and implying an equity value for the company of around €47.6m.

Mutlimon's management team will retain a minority stake in the business. The deal was agreed as part of a succession solution for the company.

Unquote sister publication Mergermarket reported in July 2020 that the business had attracted interest from both IK Investment Partners and DBAG. The business was marketed based on 2019 EBITDA of €9m.

According to a statement, DBAG anticipates revenue growth from the company's services sector as it continues to install more systems, which will require these services. Its services business currently accounts for 25% of its €93m total output.

DBAG Fund VIII held a final close in May 2020 on €1.109bn, following a first close in December 2019 on €1bn. The fund writes equity tickets of €40-100m, investing in companies valued at €75-250m.

The GP has invested in the fire safety sector before: it acquired fire extinguisher producer Kraft & Bauer via its seventh fund in September 2018.

Company
Multimon provides fire protection systems including sprinklers, foam extinguishing systems and fire alarm systems. The company plans, installs and maintains the systems, serving buildings including car parks, warehouses and production plants.

Multimon generates almost 70% of its revenues in Germany and 20% in Poland. The company is based in Kirchheim, with a total of seven sites in Germany and eight subsidiaries in the CEE region. It employs 520 people and generated revenues of €59.9m in 2018.

People
Deutsche Beteiligungs AG – Rolf Scheffels (member of the management board).
Multimon – Edward Skube (chairman).

Advisers
Equity – Roland Berger, Sven Kleindienst (commercial due diligence); Alvarez & Marsal, Andreas Schmitz (financial due diligence); White & Case, Tobias Heinrich (legal); Gleiss Lutz, Eike Bicker (legal); Flick Gocke Schaumburg, Torsten Engers (tax); ERM, Werner Schulte (environmental due diligence); Marsh, Oliver Matovu (insurance due diligence).
Vendor – Kloepfel Corporate Finance (corporate finance).