Saargummi (Germany) - Dec 2007

unquote
01 December 2007

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Odewald & Compagnie Gesellschaft für Beteiligungen mbH has acquired rubber manufacturer SaarGummi-Gruppe from private equity funds advised by Orlando Management. Rothschild has advised on the transaction. SaarGummi is acquired through Odewald’s Fonds III, which closed on €610m in July 2007.

Odewald & Compagnie had looked at the company a few years previously, but as it was a turnaround case, this did not match its investment criteria. After the successful turnaround conducted by Orlando, Odewald & Compagnie saw itself as well-positioned to support the company’s growth phase, also due to its experience and knowledge in the global automotive sector. An excellent relationship with the management and successful development of BOA, a portfolio company of the second fund which had a similar starting position, as well as executive experience of the partners were cited as important factors to winning the bid.

The investor was attracted by the management, market leadership of SaarGummi, as well as strong development potential in non-automotive sectors. Odewald & Compagnie plans to increase international activities (especially in Russia and China) and in best cost locations, consolidate the industry further and capitalise on the company’s technological competency in other fields of applications. The current management is retained.

Debt

The mandated lead arranger is Landesbank Baden-Württemberg. The co-arranger is Norddeutsche Landesbank.

Company

SaarGummi-Gruppe is a manufacturer of EPDM-based sealing profiles for automotive and industrial applications. The company has production facilities in Germany, Spain, the Czech Republic, Slovakia, Brazil, the US and India. Based in Schengen, Luxembourg, the company employs 3,900 staff and generated a turnover of around €390m.

Exit deal

In 2004, Orlando Management GmbH acquired SaarGummi-Gruppe from RAG Saarberg AG, a wholly-owned subsidiar

Advisers

Purchaser - Heuking Kuhn Luer Wojtek, Pär Johansson (Legal)Purchaser - Marsh Ltd - Private Equity and M&A Practice, Heidi Melsheimer (Insurance Due Diligence)Purchaser - Porsche Consulting, Cornelius Clauser (Other Due Diligence)Purchaser - PricewaterhouseCoopers, Anthony Koopmans, Frank Sauer (Financial Due Diligence)Vendor - ERM, Dr Werner Schulte (Environmental Due Diligence)Vendor - Ernst & Young - Transaction Advisory Services , Bernd Rehberger, Cord Stuemke, Lutz Pfreundtner, Willi Wingenfeld (Financial Due Diligence)Vendor - Linklaters, Agnes Bosse, Beate Stüve-Brammen, Christian Kleeberg, Christoph Götz, Dr Stephan Morsch, Julia Schechner, Karl Peter Schäfer, Kathrin Pickavé, Markus Birkenmeier, Markus Ebert, Sybille Podszun, Wolfgang Döring (Legal)Vendor - Rothschild , Alexander Bischoff, Hannes Kaltenbrunner, Thomas Kästele, Ulrich J Paefgen (Corporate Finance)