DBAG buys Plant Systems & Services PSS

DBAG invested alongside its fund for expansion capital investments, which closed in 2011. The GP intends to support the company's growth and create an industrial services group that turns over more than €100m.

DBAG entered the investment based on growth expectations for the diversified business, which the GP hopes will be driven by factors such as the age of existing power plants, plans to decommission power plants and the general trend towards outsourcing industrial services to external specialists. It also hopes to leverage on opportunities in the oil and chemical industries that are faced with stringent safety requirements.

The GP plans to repeat the success of similar portfolio companies Babcock Borsig Service (divested in 2005) and MCE (divested in 2009).

Company
PSS is the holding name of a group of specialised companies that provide services for the energy and process industries, including power plants and chemical companies. The group will be positioned across several German regions and provide a broad range of services along the client industries' output chain.

The group will initially be composed of three companies: ETABO and its two recent bolt-ons, which were funded by DBAG. ETABO is headquartered in Bochum where it was founded 40 years ago as a manufacturer and maintenance provider of pipework for power plants and industrial sites in Germany.

The company expects revenues of €32m in 2012. Its two acquired companies have revenues of approximately €20m and were bought as part of the capital increase provided by DBAG. The bolt-ons specialise in installing piping in storage tanks and in providing maintenance for tank farms.

People
Torsten Grede is a member of the Board of Management of DBAG. Ludger Kramer acquired ETABO in 2010 and will retain the majority stake in the company while acting as its managing director.

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• Topics
• Buyouts
• DACH
• Industrials
• Deutsche Beteiligungs AG
• Germany