Capiton, Nord Holding sell Engelmann Sensor to DPE

The deal values the company at €140m, equating to an entry multiple of 14x, a source close to the situation told Unquote.

The sale has generated a money multiple of more than 3x for the vendors, the same source said.

Unquote sister publication Mergermarket first reported in July 2017 that Capiton and Nord Holding had mandated Clearwater International to sell Engelmann. The company posted 2017 EBITDA of €7.5m and its 2016 revenues stood at €27.8m, marking a 6.5% increase from 2015.

Mergermarket reported in February 2021 that the company was again up for sale, with GCA Altium mandated for the process. The business generated €10m in EBITDA and €45m in revenues in 2020, sources told Mergermarket.

The publication reported earlier in April 2021 that sponsors still involved in the process in its second round included DPE and EMZ Partners.

DPE is deploying equity via DPE IV, which held a final close in September 2020 on €1bn. The fund deploys equity tickets of €20-60m and targets DACH Mittelstand businesses.

Previous funding
Capiton and Nord Holding acquired a majority stake in Engelmann in June 2014 in a deal that saw the Brendecke family retain a minority stake in the business. At the time, the business posted revenues of €35m and employed 150 people.

Capiton invested in Engelmann via Capiton IV, a 2010-vintage fund that held a final close in November 2009 on €350m. Engelmann was the final portfolio in the fund, as reported.

During the investment period, the company achieved double-digit sales growth, according to a statement. Its growth path included the development of a new management team following the first sale process in 2017 and the launch of new products, according to a statement.

Company
Engelmann was founded in 1976 and is based in Wiesloch, with additional operations in Suining, China. The residential sub-metering business produces and installs meters for the measurement, recording and transmission of heat and water-use data, serving utility companies and contractors. The company reported revenues of €45m in 2020 and employs 170 staff.

People
Capiton – Christoph Spors (partner); Manuel Hertweck (managing partner).
Deutsche Private Equity – Fabian Ruecker (partner).
Engelmann Sensor – Michael Keuthen (CEO).

Advisers
Vendor – GCA Altium (M&A); Milbank (legal); Deloitte (financial & commercial due diligence); Flick Gocke Schaumburg (tax).
Equity – Cowen (M&A, debt); Greenfort (legal); LEK (commercial due diligence); Alvarez & Marsal (financial due diligence); Flick Gocke Schaumburg (tax); Tauw (ESG due diligence); Poellath (legal).

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• Topics
• Exits
• Buyouts
• DACH
• Industrials
• Secondary buyout
• capiton AG
• Nord Holding
• Deutsche Private Equity