DBAG portfolio company Dantherm acquires Trotec
Frankfurt am Main — Dantherm Group (Dantherm), a company from the DBAG Fund VIII portfolio, acquires Trotec GmbH. Trotec is a founder-managed company that manufactures and sells mobile air conditioning products. The transaction is predominantly debt financed. DBAG Fund VIII is also supporting the transaction with a capital injection of up to 15 million euros, of which the co-investment by Deutsche Beteiligungs AG (DBAG) accounts for almost one quarter. As part of the transaction, company founder Detlev von der Lieck is taking a significant stake in the newly formed group and will in future be a member of the company’s advisory board.
DBAG Fund VIII, which is advised by DBAG, acquired a majority stake in Dantherm in November 2021 as part of a management buyout and invested 99 million euros, of which DBAG accounted for a good 22 million euros. The opportunity to achieve a leading position in Europe through inorganic growth is a central component of the value enhancement strategy. The current transaction will result in a broadening of geographic market coverage and product offering, as well as the addition of an increasingly important sales channel. Both companies combine sales of around 360 million euros and employ a total of 950 people.
Trotec (www.trotec.de) develops, produces and sells transportable and stationary devices for air dehumidification, cooling, heating and ventilation as well as air filters, which are used in industry, commerce and by private customers. In 2021, the company generated sales of around 170 million euros with such and other products. Like Dantherm (www.danthermgroup.com), it also benefited from the pandemic, which among other things led to higher demand for air filters. Trotec was founded in 1994 and now employs 350 people at locations in ten countries, most of them at its headquarters in Heinsberg (North Rhine-Westphalia).
While Dantherm mainly supplies business customers, just under a third of Trotec’s sales are generated with private customers. With an online portal that is successful in several languages, it is expanding sales opportunities, because Dantherm’s business has so far been conducted mainly through wholesalers and other stationary forms of distribution.
The market for mobile and stationary air-conditioning equipment is growing at an annual rate of between four and six percent, which is faster than the national product as a whole. Market growth is driven by climate change and the wellness trend, among other factors, but also by stricter regulations for more efficient energy use.
“Dantherm and Trotec complement each other perfectly,” Dantherm CEO Bjarke Brøns commented on the transaction; “the merger offers significant opportunities given the different market channels, large product range, technology platform and synergies in the combined supply chain.” And, “We see good growth opportunities — organically in our business, inorganically in the implementation of our acquisition strategy.” Trotec founder Detlef von der Lieck added: “I am delighted that Dantherm and Trotec are joining forces with DBAG Fund VIII as a strong shareholder. This gives the employees and the company, which I founded almost 30 years ago, excellent prospects for the future.”
“We are pleased that we have once again been able to gain the trust of a company founder who sees DBAG as the best partner for the further development of his company,” said DBAG Management Board member Jannick Hunecke now also with regard to DBAG’s most recent four investments, which were also agreed with company founders.
Deutsche Beteiligungs AG, a listed company, initiates closed-end private equity funds and invests — predominantly alongside DBAG funds — in well-positioned medium-sized companies with potential. One focus for many years has been industry. An increasing share of equity investments is accounted for by companies in the growth sectors of broadband telecommunications, IT services and software, and healthcare. The long-term, value-enhancing entrepreneurial investment approach makes DBAG a sought-after investment partner in the German-speaking region. Assets managed or advised by the DBAG Group amount to €2.5 billion.