Nord Holding buys majority stake in Dr Födisch Umwelttechnik

Harriet Matthews
14 October 2020

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Nord Holding has acquired a majority stake in Germany-based emissions technology company Dr Födisch Umwelttechnik.

Holger Födisch and the Födisch family will remain minority shareholders in the business.

"The deal resulted from our intensified sector coverage and research," Martin Scheffler, investment manager at Nord Holding, told Unquote. "This is usually driven by an underlying mega-trend indicating that companies in certain sectors will perform well in the future. We were following Dr Födisch for quite some time and intensified our discussion after the lockdown in Germany. We were convinced the company would perform well in spite of the coronavirus situation."

The buyout is expected to be financed via bank debt.

Wachstumsfonds Mittelstand Sachsen (WMS) has invested in the business alongside Nord Holding.

Asked about the GP's growth plans for the business, Scheffler said: "Dr Födisch's growth is driven by regulation and government sustainability initiatives all over the world. We will pursue add-ons, but will also support the company's remarkable organic growth in its home region and its expansion in international markets, particularly in Asia."

Nord Holding has now made three investments in the environmental technology sector, according to a statement.

Company
Dr Födisch was founded in 1991 and is based in Markranstädt. The business produces technology to measure dust, air pollutants and air flow in exhaust gases. The company reported revenues of €23.2m in 2018, according to its latest publicly available annual accounts. However, its revenues are understood to be considerably higher, in part following the add-on of market peer EP Ehler in 2018.

People
Dr Födisch Umwelttechnik – Holger Födisch (founder, chairman of the board of directors).
Nord Holding – Andreas Bösenberg (managing director); Martin Scheffler (investment manager); Marcel Rosengarten (investment associate).
Wachstumsfonds Mittelstand Sachsen – Harald Rehberg (managing director); Andreas Müller (investment manager).

Advisers
Equity – Allen & Overy (legal); Codex (commercial due diligence); EY (financial due diligence, tax); Tauw (ESG due diligence); Invensity (technology due diligence); Herter & Co (debt advisory).