Deutsche Beteiligungs AG acquires Pfaudler from NOV

Deutsche Beteiligungs AG (DBAG) has announced it will invest alongside its advised DBAG Fund VI in the Pfaudler Process Solutions Group.

Until now Pfaudler has been part of National Oilwell Varco, Inc. (NOV, www.nov.com), a US-based supplier to the oil and gas industry.

DBAG and the fund will initially acquire the group completely, after which its management is expected to co-invest in a management buyout (MBO). DBAG will invest proprietary capital from its balance sheet of up to eight million euros for its stake in Pfaudler. The completion of the transaction is contingent upon approval by regulatory authorities. Pfaudler is another primary transaction through a corporate carve-out and DBAG’s second MBO in the past four weeks: on 24 November, DBAG announced its investment in Huhtamaki Films.

“In Pfaudler, we will once again invest in a quality company operating in a global niche market,” said Torsten Grede, Spokesman of the Board of Management of Deutsche Beteiligungs AG, on the signing. The numerous components that Pfaudler has supplied over the past decades are a solid basis for the services and parts business. “With our support, that business is to be expanded – as has been done successfully in the past at other mechanical engineering companies in the portfolio,” Grede said. “The potential for increasing investment in capital goods in Asia is another factor in favour of our investment in Pfaudler.”

“We are delighted that our new shareowner considers us a core business,” said Andrew Wills, CEO of Pfaudler Process Solutions Group, commenting on the change of ownership. “Greater autonomy, which DBAG’s investment will provide, will allow us to exploit the potential inherent in our business to an even greater extent than in the past. I am certain we will also benefit from DBAG’s many years of experience in mechanical engineering and plant construction.”

Deutsche Beteiligungs AG, a listed private equity company, raises closed-end private equity funds and invests alongside the DBAG funds in well-positioned mid-sized companies with potential for development. DBAG focuses on industrial sectors in which Germany’s ‘Mittelstand’ is particularly strong on an international comparison. With its experience, expertise and equity, DBAG supports its portfolio companies in implementing corporate strategies that sustainably create value. Its entrepreneurial approach to investing has made DBAG a sought-after investment partner in the German-speaking world. Total managed and advised assets amount to approximately 1.3 billion euros.