ECM acquires Leitner

ECM used its German Equity Partners IV (GEP IV) fund to finance the transaction. GEP IV closed on €230m in July 2012. It aims to acquire majority stakes worth between €20-250m in Mittelstand companies.

Leitner plans to expand throughout Germany. This will involve extending its marketing operations to northern Germany, making new hires and conducting bolt-on acquisitions. It will also receive investment for its product portfolio and fleet of vehicles. Leitner plans to offer more package trips to long-haul destinations and to expand its online sales activities.

According to the company, the package tour travel market currently rakes in around €900m in annual turnover, of which Leitner has a market share of 20%.

Andreas and Gertrud Blankenburg will continue in their roles as managing directors for a transitional period, after which the former will join the newly established advisory board. CEO Erwin Fries will remain as a senior member of the Leitner management.

Company
Founded by Josef Leitner in 1948 as a local coach operator, the business is now a tour operator offering coach, flight and cruise packages. The company was bought by the Blankenburg family in 1992. Leitner served 150,000 clients in 2013 and generated revenues of around €70m.

The firm claims to have a 40% market share in southern Germany.

People
The ECM deal team comprised Florian Kähler, Axel Eichmeyer, Alexander Schönborn and Tobias Fuchs.

Advisers
Equity – EY (Financial due diligence, tax); Allen & Overy (Legal); King & Wood Mallesons (Corporate finance); PwC (Commercial due diligence); Willis (Insurance due diligence).
Vendor – Huber Reuss & Kollegen (Corporate finance); Acuris Rechtsanwälte (Legal); Friedlein Endrich Stein (Financial due diligence, tax).

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• Topics
• DACH
• Buyouts
• Consumer
• Germany
• ECM Equity Capital Management