DBAG exits Homag Group in trade sale

Harriet Bailey
16 July 2014

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Deutsche Beteiligungs AG (DBAG) has divested its 20% stake in mechanical engineering company Homag Group to a subsidiary of Dürr after 17 years of ownership.

Dürr, via its subsidiary Dürr Technologies, has acquired 53.7% of Homag shares: 39.5% from DBAG and DBAG-associated funds; 3% from the 25.1% Schuler/Klessman share pool and 11% from two further shareholders. Total deal value was €219m, earning DBAG more than €80m for its 20.1% stake.

In total, Homag has 15.7 million shares. DBAG will sell its 3.15 million shares at €26.35 per share, representing a premium of 12% on the volume weighted average share price over the past three months and earning a 2.5x money multiple.

The sale earns DBAG an extra €9.2m on its consolidated net income for the financial year ending 31 October 2014, resulting in a total of €35.6m compared to last year's €32.3m.

Homag will continue to operate as an independent brand within the Dürr group.

Previous funding
According to unquote" data, DBAG first invested in Homag in 1997, taking a 21.4% stake. In November 2006, DBAG Funds IV and V increased their interest to 64.4%, acquiring the additional shares from the Schuler and Hornberger-Hiller families.

DBAG listed the company in July 2007, raising €214m and reducing its share to 33.1%. In December 2012, the GP increased its stake again, paying €12.06 per share to increase its shareholding to 39.5%. The shares were bought from the Wehmann family.

Company
Founded in 1960 by Gerhard Schuler and Eugen Hornberger, Homag is a woodworking machinery manufacturer for the furniture and construction supplies industries. It employs approximately 5,000 people at its Schopfloch headquarters.

Homag sells its products in more than 100 countries, with around 60 sales partners and 150 independent dealers. In 2013 it generated sales of €789m and an EBIT margin of 4.4% and an equity ratio of 33%.

People
Markus Flik is chairman of Homag's board. Ralf W Dieter is chairman of Dürr's board of management, while Susanne Zeidler is DBAG's CFO.

Advisers
Equity – Freshfields (Legal).