Highlights

The first half of 2019 has seen good market sentiment in general, however some sectors are showing the first signs of an economic downturn due to industry-specific trends. More traditional industrial sectors such as automotive and machine construction, are where the first signs of economic headwinds are most pronounced. Restructuring deal activity has picked up with a general expectation that this will increase over the months to come.

In terms of buyout deal volume, the Industrial Products & Services and TMT sectors remain the most active sectors, however at considerably lower levels compared to the previous year, down 27% and 47% respectively.

With corporates showing more restraint due to lack of confidence in the market, private equity has lately seen its influence grow. Sponsor-backed M&A activity has been strong during the first half of 2019 and continued throughout Q3, confirming an ongoing large appetite for quality assets in the DACH region.

Going forward the DACH market is expected to show some larger scale carve-out opportunities. Furthermore, succession-driven deal opportunities remain a relevant factor for 2020’s pipeline.

Consumer, Leisure and Retail:

  • The Riverside Company has agreed to acquire a 62% stake in the German tent manufacturer TOOLPORT from the managing directors Stephan Weiss and Marc Schmidt, financial terms of the transaction were not disclosed. DC Advisory advised TOOLPORT, see more >
  • Santo Venture Capital, Armira Partners & Co. KG, and the Struengmann Family have acquired an undisclosed stake in Boxine, the German-based manufacturer of children’s cloud-based digital audio systems, for an estimated consideration of €300m
  • Paragon Partners has agreed to acquire a majority stake in pro optik Augenoptik Fachgestchaeft, a German-based optician chain, for an undisclosed fee

Healthcare:

  • A consortium of investors led by Fidelity has acquired an undisclosed stake in BioNTech AG, the Germany-based company that develops innovative therapeutics and biomarker-based diagnostics for a consideration of $325m in a Series B Financing round

Industrial Products and Services:

  • Deutsche Beteiligungs AG has acquired the Cartonplast Group, the German-based provider of reusable and returnable plastic layer pads for the food and beverage, pharmaceutical and cosmetic industries, from Stirling Square Capital Partners, for a consideration of €300m

Services:

  • Equistone has agreed to acquire Omnicare Pharma, the German-based company operating as a wholesaler of pharmaceutical medicines, for an undisclosed consideration

TMT:

  • Basalt Infrastructure Partners has acquired SOCO Network Solutions, a Germany-based FTTC/H network operator and bn:t Blatzheim Networks Telecom, a Germany-based internet service provider / carrier (ISP) and authorised telephone carrier, from Adiuva Capital, for an undisclosed consideration. DC Advisory advised Basalt Infrastructure Partners, see more >
  • Oakley Capital has agreed to acquire an undisclosed majority stake in Seven Miles, the Germany-based company that offers a range of gift cards and employee incentive subscription products to consumers and businesses, for an undisclosed consideration
  • Apax Partners along with Deutsche Telekom Capital Partners Management has agreed to acquire an undisclosed stake Signavio, a Germany-based cloud-provider of Business Process Management solutions, for a consideration of $177m