Gavin Wood
8 December 2016 · 2 min read

Deutsche Beteiligungs – DBAG Fund VI final investment; DBAG Fund VII investment period starts

DBAG Fund VI will be 86% invested after Dieter Braun transaction

Deutsche Beteiligungs (DBAG) has announced that it will invest up to €5.9m for a 13.1% interest in Dieter Braun (Braun), a supplier of cable assemblies to the automotive industry (one of DBAG’s core sectors of expertise). DBAG is co-investing alongside DBAG Fund VI in the management buyout of Braun from financial investor Seafort Advisors. This represents the final investment by DBAG Fund VI, which will be 86% invested following the transaction, and therefore also marks the commencement of the investment period for newly launched €1.0bn DBAG Fund VII.

The acquisition of a majority interest in Braun will be the eleventh investment by DBAG Fund VI, bringing its investment period to an end after less than four years, a year ahead of the fund’s scheduled investment period end in February 2018. With the fund 86% invested, remaining commitments to DBAG Fund VI will be available to support the growth of portfolio companies, including potential add-on acquisitions.

Braun is a specialist cable assembly and lighting supplier to the automotive industry, providing efficient solutions involving a high degree of complexity and variable lead times. Founded in 1993, the company has grown revenues at 19% pa over the past seven years to €77m and employs a staff of 1,500. Headquartered in Bayreuth, Germany, Braun operates facilities in the Czech Republic, Ukraine, Mexico and China. The company is benefiting from the increasing volume of electrical and electronic components in vehicles as well as the trend by OEMs and suppliers to outsource production processes.

DBAG’s investment will support Braun’s capacity expansion and development of new production lines, which should enable the company to meet growing demand and strengthen its position in a fragmented market. In addition, potential is seen to expand the company’s product portfolio to include other applications as well as broadening its geographical reach.

Read Edison’s most recent research report on DBAG here.

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