DBAG and Redwood exit Clyde Bergemann

Katharina Semke
18 April 2016

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Deutsche Beteiligungs AG (DBAG) and Redwood Capital Partners have exited energy plant supplier Clyde Bergemann.

While the company developed positively at the start of the investment, with revenues growing from $180m to $500m, this trend eventually came to a halt. In recent years, Clyde Bergemann experienced financial troubles due to the energy industry's transition away from coal and fewer investments in coal-fired power plants. The company therefore restructured its larger US-based entities and European sites, while the Asian business continued to develop positively, thanks to newly built plants in China.

The divestment will not result in a value contribution for the third quarter of DBAG's current financial year. In the first six-month period, Clyde Bergemann's value contribution to net income was negative.

The sale of Clyde Bergemann is the 10th and last exit for DBAG's Fund IV, which returned double the paid-in capital to investors, according to the GP. The vehicle was launched in 2002.

DBAG's investments through the fund included four mechanical and plant engineering companies and three automotive suppliers. The portfolio comprised pump manufacturer Lewa; building component supplier Heim & Haus; and trailer axle and suspension systems manufacturer Otto Sauer Achsenfabrik, among others.

DBAG Fund IV had capital commitments of €228m, in addition to €94m from DBAG itself. The following fund had total commitments of €434m (including €105m from DBAG) and was fully invested in February 2013.

Previous funding
In May 2005, Saw Mill Capital sold its stake in Clyde Bergemann to DBAG and Redwood for an undisclosed amount. DBAG held 15.7%, while its buyout fund DBAG Fund IV held 39.9%.

Company
Founded in 1996 and based in Lewes, Delaware, Clyde Bergemann develops and manufactures components for energy-related production processes. The products are designed to ensure efficient and safe operation of power plants, industrial and waste incineration plants and petrochemical plants, and contribute towards energy efficiency and emission reduction in energy production. The company also provides servicing for these products.

People
Clyde Bergemann - Franz Bartels (CEO).