Frankfurt am Main — Sero GmbH (Sero), a company in the portfolio of DBAG Fund VII, acquires Solid Semecs B.V. Like Sero, the Dutch company is a development and manufacturing service provider for EMS (Electronic Manufacturing Services, complete contract manufacturing of electronic assemblies, devices and systems) and operates on the market as Semecs. DBAG Fund VII will invest around 16 million euros in the purchase, of which 3.6 million euros will be invested by Deutsche Beteiligungs AG (DBAG).
The aim of the transaction, which was agreed at the end of last week, is to broaden the customer base, open up new customer sectors and expand production capacities with a site in Eastern Europe. The seller is the Dutch company Rademaker Beheer B.V. The family behind the company is primarily involved in machinery for large bakeries; Semec’s activities are accordingly outside its core business. The purchase is subject to approval by the antitrust authorities; the transaction is expected to be completed by mid-year.
DBAG Fund VII, which was advised by DBAG, had invested in Sero in November 2018 as part of a management buyout. DBAG had co-invested around eleven million euros alongside the fund. It holds 21 percent of the shares in Sero. The current transaction is the seventeenth corporate acquisition structured by a company from the DBAG portfolio within the past twelve months. The objective is predominantly to accelerate the performance of the respective portfolio companies, for example by broadening the product range and regional coverage or by consolidating the market.
Semecs (www.semecs.com) assembles printed circuit boards for a wide range of applications and also specializes in common assembly, calibration and testing services. The company, headquartered in Uden, Netherlands, employs 480 people, 450 of whom work at the production site in Vráble, Slovakia, which was built in 2012. For the current year, the company expects sales of around 72 million euros.
The electronic components produced by Semecs in predominantly small quantities are used, for example, to control air-conditioning systems or the motors of e‑bikes, are found in electronic electricity meters and mobile insulin pumps, and are installed in the LED lighting or engine control systems of cars. Around 70 percent of sales are generated with industrial customers; the remaining share is accounted for by applications in medical technology and products for the automotive industry.
is where Semecs differs from Sero: Sero is an established production partner to the automotive supply industry and generates around 85 percent of its sales there. With a high degree of automation, the company specializes in high-volume orders. Semecs, on the other hand, deals with orders above medium quantities and a higher proportion of manual activities. Both companies will benefit equally from the combination of manufacturing operations involving the Slovakian site, thereby achieving a higher degree of flexibility for different order sizes and better positioning in the acquisition of new business. The acquisition of Semecs thus broadens Sero’s customer base and market access for the company, which employs around 220 people in Rohrbach, Rhineland-Palatinate.
The newly formed group operates in an attractive market: for the core segments of industry, medicine and automotive, growth rates above the already attractive growth of the EMS market as a whole are expected in the coming years.
“The competencies of the two companies complement each other perfectly,” said Jannick Hunecke, member of the DBAG Management Board on the occasion of the transaction. He added: “Together they can better serve the attractive market and optimally combine their capabilities in production, so that with the company acquisition we are strengthening and accelerating the further development of our original investment.”
Sero CEO Dr. Bernd Welzel highlighted the strategic importance of the transaction for Sero: “The company created from the two EMS specialists ensures a strong and competitive presence in Europe with a broad range of manufacturing service offerings across different market segments — this opens up a variety of opportunities for us and underlines our expansion policy.” Semecs Managing Director Jan-Fredrik Kalee added, “We bring a well-trained team to an attractive location with a recognized good quality assurance process and look forward to working with them.”
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 proportion of equity investments are in companies in the growth sectors of broadband telecommunications, IT services/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.