Capiton buys Betonbau Group

Harriet Matthews
20 December 2021

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Capiton has acquired a majority stake in concrete electrical enclosure producer Betonbau Group in a carve-out from building materials business Schwenk Group.

The GP is investing alongside managing directors Volker Ernst and Thomas Sachers.

Capiton is deploying equity via Capiton VI, which held a final close in November 2021 on EUR 504m. The fund deploys equity tickets of EUR 20m-50m, focusing on primary buyouts of lower-mid-market companies in the DACH region with revenues of EUR 50m-100m.

The fund was 36% deployed and EUR 260m committed across seven deals at the time of its final close. The fund has now made eight deals and is expected to make up to 15.

Following the investment, Capiton intends to support the company with its expansion into new geographies and segments, as well as its inorganic growth. The GP said in the same statement that it expects Betonbau to be a key player in Germany's ongoing energy transition, which has seen the country shift towards more sustainable energy sources.

Company
Founded in 1963 and headquartered in Waghäusel, Betonbau produces protective concrete structures for a range of electrical sites, including transformer stations for power grids, e-mobility charging infrastructure and point-of-presence (POP) stations for telecommunication networks. Its services include planning and engineering, enclosure and metal component production, installation and refurbishment.

The company employs 900 staff in Germany and the Czech Republic, and serves more than 1,000 customers, which include network and public utility providers, as well as private customers. According to its latest publicly available accounts, the company posted revenues of EUR 154.9m in 2020, versus EUR 142.7m in the previous year.

People
Capiton – Christoph Spors (partner).
Betonbau Group – Volker Ernst, Thomas Sachers (managing directors).

Advisers
Equity – BMH Bräutigam (legal); Ashurst (legal); BET (commercial due diligence); Deloitte (financial due diligence, IT due diligence); EY (tax); Lincoln International (debt advisory); Marsh (insurance due diligence); Tauw (ESG due diligence).
Vendor – Transfer Partners (corporate finance).