IK generates 42% IRR on Hansa Metallwerke exit

The sale of Hansa to family-owned Oras, which initiated the transaction, generated a 2.7x return for IK. During a three-year holding period, Hansa tripled its EBITDA from €4m to €12m.

Hansa and Oras will merge into Oras Group, a newco with a combined turnover of €260m.

IK acquired a 99.74% stake in Hansa from family-owners Göhring and Reh in 2010, in an investment reported to be worth approximately €111m. IK acquired the company through an auction process run by Ferber & Co, according to unquote" data.

IK's original investment was made via its IK2007 Fund. The GP sought to expand Hansa internationally and restructured its product range.

IK's IK2007 fund, which held its final close in October 2007 at €1.7bn, invested in 16 portfolio companies. The vehicle invested 32% of its commitments in France, 25% in Germany, 13% in Sweden, and 6% each in Poland, Norway, Luxembourg, the Netherlands and Belgium.

In April this year, IK exited Hansa's subsidiary KWC to Swiss-based kitchen specialist Franke.

Oras is a bathroom and kitchen sanitary fittings provider based in Rauma, Finland, and currently employs 900 staff. The firm is focused on the northern European market, aiming to improve its position in central Europe through acquiring Hansa.

Company
Hansa, founded in 1950, is based in Stuttgart. The firm employs more than 1,000 staff. It operates in Germany, Austria and Switzerland, developing bathroom and kitchen sanitary fittings. Hansa recorded revenues in 2009 of €194m.

People
Detlef Dinsel is managing partner at IK and led the original deal in 2010. Christopher Marshall is CEO of Hansa. Pekka Kuusniemi is the president and CEO of Oras.

Advisers
Vendor - Ferber & Co (M&A); RRKH (Legal).
Equity - Hengeler Mueller (Legal).

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