Background 

  • Mehler Vario System Group (Mehler) is the European market leader in:
    • personal ballistics protection systems such as protective vests;
    • related tactical clothing and accessories for military, police and special forces; and
    • ballistic protection solutions for light civil vehicles.
  • Mehler has been owned by a private investor since 2014 and has been successfully grown by the management team organically and through add-on acquisitions

Process

  • DC Advisory (DC) was appointed by Deutsche Private Equity (DPE) to secure an attractive debt financing package for the acquisition of Mehler
  • DC successfully secured a strong lending package with a selected group of senior banks and direct lending funds to support DPE along the entire acquisition process
  • Uncertainties around the Covid-19 pandemic were addressed and moderated by DC to provide lenders transparency and comfort and to always ensure transaction security for DPE
  • DC secured strong interest on both the senior debt and unitranche routes by communicating an ambitious financing ask with a focus on an efficient cost structure and significant leverage headroom

Outcome

  • With two direct lending funds head-to-head in the process and fully committed on the acquisition financing, Barings together with Deutsche Bank and Siemens Bank, were taken forward to provide the debt package for DPE
  • Barings provided an attractive unitranche acquisition financing complemented with a competitive senior revolving credit facility provided by Deutsche and Siemens, optimizing the leverage corset and debt quantum and minimizing the overall cost structure