DBAG exits Coperion to US trade player

Carmen Reichman
16 October 2012

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Deutsche Beteiligungs AG (DBAG) and its co-investment fund DBAG Fund V have sold German mechanical engineering group Coperion to US trade buyer Hillenbrand in a deal understood to be worth €400m.

Coperion will become part of Hillenbrand's Process Equipment Group following the sale.

DBAG is believed to have reaped around €220m from the sale, equating to a 4x money multiple on its 2007 investment. The GP stated that the transaction valued the company in excess of the amount mentioned in its interim report on 31 July.

The divestment will contribute more than €10m to DBAG's fourth-quarter net result of valuation and disposal in 2011/2012, the GP continued in a statement.

Previous funding
DBAG and its co-investment fund DBAG Fund V bought Coperion in a SBO from Lyceum Capital in 2007. The deal was valued at €300m, including around €250m of debt, and co-investment from management was planned at a later date.

During the holding period Coperion expanded its service business globally by establishing further sales and service sites. The business grew particularly in China, India and the Near and Middle East. In January 2012 and April 2012, the group acquired two smaller companies to enhance its product portfolio. The Stuttgart production site also underwent major restructuring to improve production processes.

In the past 12 months Coperion generated revenues of €518m, up from €480m at the time of the buyout in 2007. The business suffered revenue losses during the economic crisis but recovered strongly in 2011 and 2012, the GP said. Coperion had an EBITDA of €40m prior to the DBAG-led takeover.

Company
Coperion was formed in late 2000 through the merger of Werner & Pfleiderer and Waeschle.

The group develops, manufactures and markets complete bulk material conveyor systems as well as machines for the production and processing of plastics, chemicals and food in powder and granular form.

Coperion currently employs 1,900 people, more than 1,300 of which are located at two German sites in Stuttgart and Weingarten.

People
Rolf Scheffels is a member of DBAG's management board.