IK Partners acquires e-commerce specialist Stein HGS

Wahida Ahmed
04 January 2022

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UK-based private equity firm IK Partners has agreed to acquire Germany-based e-commerce specialist Stein HGS for an undisclosed sum.

IK Partners is acquiring the stake from Lennertz & Co; however, financial details were not disclosed.

Lennertz and its founder, Bodo Stein, will reinvest. Together they will aim to expand the e-commerce offering while adding to the product range, and develop through new customer acquisitions. The company will retain its CEO, Stephan Otte, and his team.

Lennertz, a Germany-based family office, acquired a majority stake in Stein via an MBO in October 2019. The company had around EUR 1m in EBITDA at the time, according to Mergermarket.

Mergermarket also reported in September 2021 that Lennertz was evaluating options for Stein, which included an exit, and was expected to complete the sale in 2022. The article noted that Stein is forecasted to generate around EUR 5m in EBITDA in 2022.

IK is investing via IK Small Cap III Fund and its dedicated pool of development capital, according to a press release. IK Small Cap III was registered in November 2020 and held a final close in April 2021 on EUR 1.2bn, surpassing its EUR 1.1bn target. The fund focuses on buyout opportunities in small companies across Europe. It aims to target a money multiple gross return of more than 2.5x and looks to invest in 15-20 companies with enterprise values of EUR 50-150m, according to Unquote Data.

IK Small Cap III's portfolio includes Blanchon, a France-based buildings materials provider; DA Languages, a UK online translations service; Plastiflex, a Belgium-based plastics provider; and Prophecy Group, a France-based cybersecurity company.

IK Partners declined to comment.

Company
Stein was founded by Bodo Stein in 1991 in Germany and is headquartered in Seevatal. The company is a fully digitalised online B2B retailer of barrier technology equipment, including bicycle stands and other types of urban furniture. According to a press release, it has 30 employees. The company has around 200,000 individual items on its online shop.

People
IK Partners – Ingmar Bar (director).
Lennertz & Co – Erol Ali Dervis (private equity manager).
Stein HGS – Stephan Otte (CEO).