Gavin Wood
16 May 2017 · 3 min read

Deutsche Beteiligungs – sale of Schülerhilfe to Oakley Capital

Strategically important first divestment by DBAG Fund VI

Deutsche Beteiligungs (DBAG) has announced the sale of private tutoring services provider Schülerhilfe to Oakley Capital Private Equity. The investment in Schülerhilfe was DBAG Fund VI’s first transaction in October 2013 and its sale marks the fund’s first divestment after less than four years. This is a strategically important transaction for DBAG as it represents the first realisation of an investment outside of the team’s traditional core sectors of expertise, confirming DBAG’s ability to complete deals successfully across a broader range of industries. The transaction price has not been disclosed but DBAG management has confirmed that the sale was at a premium to Schülerhilfe’s portfolio valuation and will contribute around €9m to DBAG’s net income in the third quarter of FY17.

The sale of Schülerhilfe follows DBAG’s divestment of Formel D, announced last week, continuing a very active period for both new investments and realisations. The sale to 3i of the automotive and component manufacturing service provider after four years in the portfolio represented the third divestment by DBAG Fund V within three months. The transaction price was not disclosed but DBAG management confirmed that the sale was at a premium to Formel D’s portfolio valuation and will contribute around €10m to DBAG’s net income in the third quarter of FY17.

The income contribution from the divestments of Schülerhilfe and Formel D was not included in DBAG’s upgraded earnings guidance issued on 9 May 2017, where management indicated that net income of more than €56m was expected for the year to 30 September 2017, significantly exceeding the €46.3m comparable income for the prior year as well as previous guidance for a moderate decline in net income. Both deals are subject to regulatory approvals and are expected to be completed within three months.

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

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