DevCo-backed VAG acquires ZMK Technologies

VAG acquired 95.5% of the shares in ZMK, which designs valves for the petrochemical industry.

The add-on strengthens the petrochemical business of VAG, which provides valves to various industries across Europe and has factories in Finland, the Czech Republic and Russia.

DevCo, a long-term active owner that invests in niche markets, acquired VAG in 2016 using its first single-asset structure. DevCo has so far created three funds, with each fund investing in a single company.

DevCo founding partner Otto Kukkonen told Unquote that he had been in talks with the company for about a year and that many processes were carried out remotely for the deal. 

He said the deals were not backed by fresh equity and that they were paid for using debt and the cashflow generated by VAG. Following the deal, VAG's turnover will exceed €130m.

Company
Founded in 2015 and based in Düren, ZMK is a designer and supplier of highly specialised valves for petrochemical plants and refineries. The company offers services from consultation, engineering and manufacturing of valves all the way to installation, commissioning and maintenance. It exports its products to 30 countries, employs 40 staff and reported a turnover of €20m in 2019.

People
Vexve Armatury Group – Jussi Vanhanen (CEO).
DevCo – Otto Kukkonen (founding partner).
ZMK Technologies – Rüdiger Klein (managing director, co-owner).

Advisers
Equity – EY (financial due diligence); Luther (legal).

• Tweet  
• Facebook  
• LinkedIn  
• Google plus  
• Send to  

• Topics
• Portfolio management
• Nordics
• Germany
• Finland
• Buy-and-build
• Build-up