Deutsche Beteiligungs AG sells stake in Infiana to Pamplona
Frankfurt am Main — Deutsche Beteiligungs AG (DBAG) successfully completes its investment in Infiana Group GmbH (Infiana). Its shares will be sold to Pamplona Capital Management, a financial investor based in the UK. The shares of DBAG Fund VI, which was advised by DBAG, and the Infiana management will also be sold. Corresponding agreements were signed last week; their execution is still subject to the approval of the antitrust authorities. The transaction is expected to close within the next three months. With this transaction, DBAG realizes more than double the originally invested capital. The parties have agreed not to disclose the purchase price.
The portion of the proceeds from the sale now agreed upon attributable to DBAG exceeds the carrying amount of the investment in the IFRS interim financial statements as at March 31, 2019. The disposal will therefore result in a slightly positive contribution to consolidated earnings in the third quarter of 2018/2019, which ended on June 30, 2019. The forecast for the 2018/2019 consolidated earnings of Deutsche Beteiligungs AG remains unchanged in view of the continuing imponderables relating to other factors influencing consolidated earnings.
Infiana (www.infiana.com) develops and produces specialty films for the consumer goods market and industrial applications. These are used for sophisticated packaging and as a component for hygiene products, as release and surface films for applications in the construction industry, and as release films in technical adhesive tapes and specialty labels. Among other things, the company has identified specialty films for pharmaceutical applications and for the production of composite materials as attractive growth areas. The variety and breadth of end-use fields provide for great diversification. The high flexibility in production enables a variety of products. In doing so, the company benefits time and again from its intensive innovation activities, for which it has received several awards. Infiana produces at two locations in Germany and in the USA. The nucleus of the 165-year-old company, which currently employs 800 people, is its German headquarters in Forchheim. In 2018, Infiana turned over 227 million euros.
DBAG and DBAG Fund VI had invested in Infiana in December 2014 as part of a management buyout (MBO). The previous shareholder, a Finnish group, had sold the specialty films business because it wanted to focus on the production of food packaging. Accordingly, after the secession, the first task was to shape Infiana’s independence. Following the divestment of production in Brazil and Thailand, the German and US sites were expanded and modernized through substantial investment in additional extrusion and coating capacities. The ESG and compliance guidelines were expanded and adapted to meet the increased requirements.
“Infiana is better able to seize its market opportunities today than it was five years ago,” said Dr. Rolf Scheffels, a member of DBAG’s Management Board; “the investments have contributed to this, as has the reorganization of sales from a largely regional approach to a global, vertical approach.”
Commenting on the change of ownership, Peter Wahsner, Chairman of the Management Board, said: “Infiana has developed enormously in recent years and is well positioned to continue to operate successfully in the future — with efficient and modern production and a leading position in attractive end markets.”
The sale of the investment in Infiana is the fourth closing of an MBO from the DBAG Fund VI portfolio. The fund had structured eleven MBOs between 2013 and 2016.
Deutsche Beteiligungs AG, a listed company, initiates closed-end private equity funds and invests alongside DBAG funds in well-positioned medium-sized companies with development potential. DBAG focuses on industrial sectors in which German SMEs are particularly strong by international standards. With this experience, know-how and equity, it strengthens the portfolio companies in implementing a long-term, value-enhancing corporate strategy. The entrepreneurial investment approach makes DBAG a sought-after investment partner in the German-speaking region. The capital managed and advised by the DBAG Group amounts to approximately 1.7 billion euros.