Paragon to acquire Balda's operating business for €62.9m

Including the profits to be paid out for the past business year, the sale price will be €66.7m. In its nine-month figures from May 2015, the company recorded revenues of €61.9m, compared to €51m the year before, and an EBITDA of €2.8m.

The take-private comes after several difficult years for the company. In 2013, the chair of Balda's supervisory board, Michael Naschke, had to step down from his role over a dispute with shareholder group Elector, which was unhappy about the share price performance.

The rising profits since 2014 are partly due to a new strategy. Years ago the company successfully produced plastic casing for mobile phones, a market that eventually dried up. The business then shifted strategies with acquisitions of four sites in the US, now mainly supplying companies in the healthcare sector.

Paragon stated it will maintain the strategic focus on healthcare. The investor plans no redundancies and will keep the existing managing board. The transaction is still subject to shareholder and regulatory approvals.

Company
Founded in 1908, Balda is a producer of precision components from high-performance plastics. Balda Medical in Germany and Balda C Brewer in the US offer cleanroom injection moulding for the healthcare industry and also for the eyewear, electronics and automotive sectors.

People
Krischan von Moeller is a founding partner at Paragon. Oliver Oechsle is the sole management board member of Balda.

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• Topics
• DACH
• Industrials
• Buyouts
• Take Private
• Paragon Partners GmbH