Fund managed by ECM acquires majority stake in SIS
Frankfurt am Main/Amelinghausen — The fund German Equity Partners V (“GEP V” or the “Fund”), managed by the independent German investment company ECM Equity Capital Management GmbH (“ECM”), has acquired a majority stake in the environmental technology service provider SIS GmbH (“SIS”). SIS specializes in thermal off-gas cleaning and degassing and is an international leader in reducing emissions from volatile hydrocarbons in the oil and gas industry through the use of mobile combustors. The company’s founder Guido Soyk will continue to hold a significant stake in SIS and will lead the company into the next phase of its development as managing partner. As part of the transaction, sales manager Martin van der Veen will be appointed as second managing director. The parties have agreed not to disclose further details of the transaction.
Together with ECM, the company intends to invest in its further development as well as the targeted expansion of its management and sales structures in order to realize the full potential of the solutions offered by SIS in the existing core market of the oil and gas industry and to develop new opportunities in further international markets as well as in the chemical industry and shipping.
Environmental technology at the interface of occupational safety and climate protection SIS was founded in 2008, based in Amelinghausen, with the aim of improving occupational safety in the cleaning of process plants and tanks. For this purpose, as well as for temporary replacement when required by customers, the company uses mobile and flexible combustion chambers developed in-house, which help to avoid the emission of volatile hydrocarbons that are harmful to the environment and to health, as well as being highly flammable. The mobile combustors are provided in shifts with appropriate skilled personnel and on-site service as well as complementary equipment as part of a fully integrated and comprehensive service and solution offering.
Over the past five years, increasingly stringent emissions regulation as a result of the further development of environmental and climate policy has become a key driver of demonstrated business growth. SIS customers include leading global companies in the oil, gas and chemical industries such as BASF, BP, Exxon Mobil, DowChemical, Sabic, Shell and Total. Realizing growth opportunities in the core market and opening up the chemical industry and shipping for SIS solutions with ECM as an experienced partner In Germany and the Netherlands, SIS has a market-leading position in its previous core industry — the European refinery industry. The company still sees considerable growth potential here. In addition, there are still great opportunities for the use of the solutions offered by SIS, especially in France and Spain as well as other countries in Western Europe.
Another potentially large target market is the European chemical industry, where SIS already has excellent reference customers in BASF and Dow Chemical. In addition, demand for SIS solutions is also increasing in the shipping industry. The 15 largest seaports in Europe, as well as numerous inland ports, transport products that emit volatile hydrocarbons on a large scale. With reference projects in the ports of Rotterdam, Wilhelmshaven and Bilbao, SIS is excellently positioned for further growth in this segment. ECM has extensive experience in supporting growth and internationalization strategies in medium-sized companies, which has been proven with numerous investments in a wide range of industries.
In partnership with ECM, SIS intends to expand its existing management and sales structures and make the transition from an owner-managed to a management-managed company. The common goal is to systematically seize the growth opportunities that present themselves through a broader market approach in the future and targeted expansion into previously untapped sectors and countries. In addition to strategic know-how, ECM also brings a long-standing industry network to this partnership. Guido Soyk, founder and CEO of SIS, stated: “We are proud to have been able to develop SIS into the leading company in an extremely interesting and increasingly relevant niche for the reduction of emissions from fugitive hydrocarbons. In order to fully realize the further growth potential for our solutions, we have been looking for a partner that fits our mid-sized identity, but at the same time has proven that it can successfully accompany ‘hidden champions’ such as SIS on their way to the next stage of development. We look forward to opening a new chapter in the history of SIS together with ECM.”
Alexander Schönborn, Investment Director at ECM, added: “SIS not only has an impressive product and service offering, but also an outstanding market position. It is clear that demand for SIS solutions will continue to grow in the face of climate change and increasingly stringent regulation of hazardous emissions. However, growing beyond a certain size and core market is often a challenge for founders. As a growth partner for medium-sized companies, we have already successfully accompanied this process many times and are pleased to support SIS on this path with our experience as well as our industry network.”
Advisors to ECM Equity: GEP V was advised on this transaction by Milbank (legal and structuring), Androschin & Partner (market due diligence), Ebner Stolz (finance & tax) and Willis (insurance).
Alexander Schönborn, Florian Kähler and Christoph Demers are responsible for the transaction at ECM. SIS was advised on the transaction by CFC Corporate Finance Contor and Dr. Thomas Bister (M&A and Legal).
About ECM Equity Capital Management GmbH (“ECM”)
ECM is an independent investment company based in Frankfurt am Main. ECM acted or acts as manager respectively advisor of the equity funds German Equity Partners I‑V with an aggregated equity of more than EUR 1 billion. The funds invest primarily in established, medium-sized companies in the context of growth investments and succession arrangements as well as corporate spin-offs. www.ecm.pe.de
About SIS GmbH (“SIS”)
SIS, headquartered in Amelinghausen, Germany, is the international market leader in the operation of mobile thermal exhaust gas cleaning systems and complementary equipment. The services and technologies offered by SIS play a key role for customers in reducing emissions (especially volatile hydrocarbons). SIS helps them comply with even the strictest environmental regulations. The portfolio of mobile emission control equipment is unique on the market in terms of size, quality and safety standards.