London-based private equity firm takes “significant stake” in German car parts maker
Private equity company 3i has acquired a “significant equity stake” in a German car parts maker.
The group has also invested €181m (£139m) in Schlemmer, which is being purchased from Hannover Finanz and the Mackprang Holding for an undisclosed price.
Schlemmer, which was founded in 1954 and is based in Poing, near Munich, employs 2,500 people globally and generated gross sales of €220.2m in 2015.
Read more: M&A on "hiatus" but will recover however EU vote goes, says 3i chief exec
Schlemmer has expanded internationally over the past 20 years, building relationships across Europe, North America, Japan and China.
“We are investing in a very successful company with strong relationships with blue chip customers,” Ulf von Haacke, managing director of 3i in Germany, said.
“Schlemmer has high growth potential thanks to the underlying growth drivers and the ability to serve customers globally.
“We will support Schlemmer’s management team to build on the company’s strength in Europe and Asia and to further develop its global footprint by strengthening its presence in the US market.”
Hannover Finanz said the deal, which sees it sell its 70 per cent stake in Schlemmer, is one of the largest transactions in its 40-year history.
Hannover Finanz first invested in Mackprang Holding, the parent organisation of Schlemmer and several logistics companies, in 2012.
Read more: UK private equity firm 3i sells German jeweller called Amor for £89m
Josef Minster, chief executive of Schlemmer, said: “During the past four years, Schlemmer developed very well under the ownership of Hannover Finanz and the Mackprang Holding.
“I’m convinced that in future, Schlemmer will greatly benefit from 3i’s deep experience and strong track record in the automotive industry, as well as from its international network.”
Earlier this month, 3i reported a 17 per cent increase in net asset value to £4.5bn in the year to 31 March.
Its operating profit, meanwhile, was £920m, up from £721m, after the company last year completed a three-year restructuring.