DBAG backs Sjølund MBO

Nicole Tovstiga
09 January 2018

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Deutsche Beteiligungs AG (DBAG) has backed the management buyout of Denmark-based SjУИlund, a manufacturer of aluminium and steel components for the wind power and rail industry, and will indirectly hold 51% of the company.

The enterprise value of the company is estimated at around €40m, according to a source close to the deal.

A debt package of senior loans has been provided by Danish and German banks, the source added.

DBAG will use capital from DBAG ECF as well as a co-investment of €4.5m directly from its balance sheet to acquire the 51% stake in Sjølund from the current sole owner and CEO Søren Ravn Jensen, as part of a management buyout. The remaining 49% stake will be held by management and senior executives.

Sjølund is the second majority investment from the fund since DBAG's decision in 2016 to change its investment criteria to make selected funds available for MBOs. In April 2017, DBAG backed the management buyout of German fibre-optic internet company Vitronet Projekte.

Previously, DBAG ECF primarily made minority investments in businesses in order to promote their growth.

Company
Founded in 1986, Sjølund manufacturers aluminium and steel components for the wind power and rail industry. The firm is headquartered in Sjølund, Denmark, and runs a production site in China.

For the wind power industry, it produces components for the nacelles of wind turbines. In the rail sector, Sjølund supplies train manufacturers with structural profiles and components for external cladding, for example for the front of the railcar, the window frames or the boarding area.

It employs a staff of 110 and posted a turnover of €30m for its financial year ending on 30 September 2017.

People
DBAG – Rolf Scheffels (management board member).
Sjølund – Søren Ravn Jensen (CEO).

Advisers
Equity – PwC, Peter Gröniger (financial due diligence); Marsh, Sarah Hagenkötter (insurance due diligence); ERM, Werner Schulte (ESG due diligence); Ashurst, Holger H Ebersberger (legal); Danders & More, Majken Korsgard Petersen (legal); Loyens & Loeff, Matthias Magnus (legal); Taxess, Gerald Thomas (tax); Accura, Arne Riis (tax); Andersen Partners, Michael R Skovgaard (legal).