After a busy Summer, deal activity in the DACH region tailed off towards the final months of H2 2019, largely affected by the negative economic prospects across Germany.
The US-China trade war, Brexit and the disruption in the automotive / automotive supply industry have all had an impact. Despite the lower transaction numbers during Q4 compared to previous years, the immense level of capital available, intensifying investment pressure, and the ongoing low interest rate environment kept the buyout market active.
Whilst the German Industrials sector continued to see lower buyout activity, sectors less exposed to cyclicality such as Healthcare, Services and TMT experienced structural growth – a trend we anticipate will continue throughout 2020.
Corporate carve-out activity continued to increase in Q4 and the 2020 pipeline has already started to fill, providing opportunities for DACH buyout funds. For 2020, the region could see a return of attractive private equity-held assets coming to market as holding periods come to an end.
Consumer Leisure and Retail:
- Invision has agreed to acquire Reisenthel Accessoires, a Germany-based manufacturer and distributor of bags, from the Reisenthel family, for an undisclosed consideration
- Avedon Capital Partners has agreed to acquire Hauck, a Germany-based manufacturer and retailer of strollers, safety seats, indoor baby equipment, toys and accessories, for an undisclosed consideration
- Capvis has agreed to acquired Tertianum AG, a Swiss-based company that provides senior residential care services, from Swiss Prime Site, for an undisclosed consideration
- IK Investment Partners has agreed to acquire Ondal Medical Systems, a Germany-based manufacturer of medical pendants, from Capvis, for an undisclosed consideration
Industrial Products & Services:
- EQT Partners has agreed to acquire BARTEC Top Holding, the Germany-based developer, producer and seller of component solutions and system solutions for protection from hazardous substances, from Charterhouse Capital Partners, for an undisclosed consideration
- Naxicap Partners has agreed to acquire Alwitra GmbH & Co, the Germany-based flat roof specialist, for an undisclosed consideration
- Waterland Private Equity has agreed to acquire Netgo, a Germany-based provider of IT systems, for an undisclosed consideration
- KKA Partners has agreed to acquire EVAGO, a Germany-based provider of rental services to the live infrastructure industry, for an undisclosed consideration
- OpenGate Capital has agreed to acquire CoreMedia, a Germany-based content management and digital experience platform, from Deutsche Telekom Partners, for an undisclosed consideration
- Insight Venture Partners has agreed to acquire CommerceTools, a Germany-based e-commerce software provider, for a consideration of €130m