Vision Capital has acquired a portfolio of three companies from Paragon Secondary Partners together with industrial holding Rubicon Partners
Vision Capital, a UK based private equity firm, has closed a deal with Paragon Secondary Partners to acquire three of its Germany based companies. In partnership with Rubicon Partners, an industrial management group with experience in the German market, Vision Capital purchased ABL Technic, Metallwarenfabrik Gemmingen, and Gensets. The total 2010 revenues for these three companies combined was EUR 200 million.
The deal was conceived through Vision Capital's established relationship with Paragon Partners. Vision Capital was attracted to the growth potential of the companies and is convinced that the buyout will provide the firms with expansion capital to continue the growth strategy. The new investor is looking at the company development from an international perspective.
The deal represents the remaining investments from Paragon's 2005 fund. The new investment was made from the €680m Vision Capital Partners VII LP fund.
Leutkirch-based ABL provides outsourcing services for paint stripping. Established in 1973, the firm operates 12 sites in 9 countries across Europe with customers mainly in the automotive related industry. In 2010, the company had an approximate turnover of €40m and currently employs about 300 people.
Founded in 1961, MG is a producer of customised die-castings and stampings for electric motors for specialised application. Products are distributed under brand names GEKO and Eisemann. The company also supplies retailers and customers with emergency power generators and hand spotlights used by fire fighters and other rescue services. It is headquartered in Gemmingen and employs about 300 people.
Founded in 1996, Swisshaus is a general contractor in the residential housing market for single-family houses in Switzerland and Austria. Based in St Gallen, the firm offers a range of house types, built as solid structures with prototypes amended according to customer requirements. Swisshaus employs about 135 people.
Since 1997 Vision Capital has raised over EUR 1.8 billion in seven different funds. Vision Capital specializes in buying companies through portfolio acquisitions. Acquisitions are made from other investment firms looking to exit. To date, most of the purchases have been companies located throughout Europe, and cover a broad range of industries.
Julian Mash is chief executive at Vision Capital and Ian Fisher is managing partner at Rubicon Partners. Vision CEO Julian Mash commented, ”We see opportunities to expand each of the companies in the portfolio and are looking forward to working with Rubicon and the management teams to realise this growth potential.”
Equity was provided by Mummert & Company, while financial due diligence was provided by PwC and Baird. The legal advisers were SJ Berwin who was led by Corporate partner Michael Cziesla based in Frankfurt and Head of Corporate in London Steven Davis. SJ Berwin is a leading international law firm with 150 partners and more than 400 other lawyers. The law firm provides commercial legal advice to businesses determined to succeed in today’s competitive environment.
Legal Adviser to Vision Capital
Partner Michael Cziesla commented:
“We are delighted to have advised Vision Capital on its first portfolio acquisition in Germany. SJ Berwin is recognised as being the ‘go to’ firm for the most complex and groundbreaking transactions - particularly the specific expertise in the range of Secondary Transactions as well as Portfolio Acquisitions in combination with our deep commitment to the industry contributed to the excellent relation to Vision Capital.”