Borromin sells Guntermann & Drunck to Naxicap

Unquote sister publication Mergermarket reported in September 2020 that the sale of G&D was underway, with Stephens mandated to advise on the process.

The sale has generated returns for Borromin of 3.9x money and an IRR of more than 30%, a source close to the situation told Unquote. The transaction values the company in the €50-100m bracket.

Borromin (then known as Steadfast Capital) acquired a majority stake in G&D in July 2016 in a deal valued at €25-50m, investing via its third fund. The vehicle held a final close in March 2013 on €128m and has now realised all of its six portfolio companies. The source told Unquote that the vehicle has achieved a gross IRR of more than 30% at fund level.

During the investment period, the GP supported the company's expansion to the US, as well as its overall strategic and structural development, Borromin said in a statement. The company has also increased its profitability. Borromin partner Martin Franke also became the chairman of G&D's advisory board.

The management team are to reinvest in the business as part of the buyout, Naxicap said in a statement. The GP intends to support the company with its continued US expansion, as well as with its growth in new business verticals.

G&D is Naxicap's third acquisition in the DACH market since the opening of its Frankfurt office in 2018, the GP said in a statement. The GP acquired flat roofing business Alwitra in November 2019.

Company
Founded in 1985 and headquartered in Siegen, G&D produces and sells keyboards, video equipment and mouse devices for use in IT infrastructure networks. Its products serve industries including air traffic control, broadcasting, maritime and industrials.

The business reports EBITDA of €8.5m, according to Unquote sister publication Mergermarket, compared with €6.5m in 2019. The business reported 2019 revenues of €28m, compared with revenues of €24m when it was acquired by Borromin in 2016. It employs 100 people.

People
Borromin Capital – Martin Franke (partner); Nick Money-Kyrle (managing partner).
Guntermann & Drunck – Roland Olleck (CEO).
Naxicap Partners – Peter Pergovacz (managing partner).

Advisers
Vendor – Stephens, Philipp von Grawert (M&A); Taylor Wessing, Maria Weiers (legal); EY, Susanne Dangir (tax); Deloitte, David Krüger (financial due diligence); Matthias Müller (commercial due diligence).

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• Topics
• Buyouts
• Exits
• DACH
• Technology
• Secondary buyout
• Naxicap
• Steadfast Capital GmbH