Secondary Buyout • Automotive

3i Private Equity and Trustar Capital Acquire Formel D

On May 12, 2017, private equity firms 3i Private Equity and Trustar Capital acquired automotive company Formel D from Deutsche Beteiligungs

Acquisition Context
  • This is 3i Private Equity’s 5th and Trustar Capital’s 2nd transaction in the Automotive sector.
  • This is 3i Private Equity’s 14th and Trustar Capital’s 1st transaction in Germany.

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M&A Deal Summary

Date May 12, 2017
Target Formel D
Sector Automotive
Buyer(s) 3i Private Equity
Trustar Capital
Sellers(s) Deutsche Beteiligungs
Deal Type Secondary Buyout

Target Company

Formel D

Cologne, Germany
Formel D is a service provider to the automotive and component supply industry. The company develops concepts and scalable solutions for quality assurance and process optimisation along the entire automotive value chain - from development to production through to aftersales. Formel D was founded in 1993 and is based in Cologne, Germany.
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Buyers Overview 2

Buyer

3i Private Equity

London, United Kingdom

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1945
PE ASSETS 21.0B GBP
Size Mega
Type Sector Agnostic
DESCRIPTION

3i Private Equity is the private equity arm of 3i Group, a publicly held, global investment firm focused on private equity and infrastructure investing. 3i Private Equity generally targets buyout and growth capital financings and looks for opportunities across Europe, North America, and Asia. The Firm's targeted transaction range is €100 to €500 million. Industries of interest include business services, healthcare, consumer, media, oil/gas & power, technology, and financial services. 3i Group was originally formed in 1945 and is based in London.


Deal Context for Buyer #
Overall 227 of 251
Sector: Automotive 5 of 5
Type: Secondary Buyout 34 of 43
Country: Germany 14 of 18
Year: 2017 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-04-10 Nexeye

Gorinchem, Netherlands

Nexeye is an optical retail chain. The company offers a range of private label and branded spectacles, as well as hearing aids, contact lenses and sunglasses, at average price points significantly below its major competitors. Nexeye was established in 1982 and is based in Gorinchem, Netherlands.

Buy €200M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-06-13 Monitise

London, United Kingdom

Monitise plc is a specialist in financial services technology focused on accelerating the digital transformation of banks and financial institutions. Monitise FINkit® platform and associated capabilities builds upon over a decade of experience in delivering digital services to banks and financial services partners. Whether it is augmenting legacy systems with minimal impact on those systems, a greenfield project, or strategic digital transformation, FINkit® delivers innovation at speed, safely and securely.

Sell £70M
Buyer

Trustar Capital

Hong Kong, China

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1978
PE ASSETS 8.7B USD
Size Mega
Type Sector Agnostic
DESCRIPTION

Trustar Capital is the private equity arm of financial services/asset manager CITIC Group. Trustar Capital separates its private equity investment activity into three groups; China, Japan, and the US. In general, Trustar looks to invest in companies with 'strong franchises', with established brands and high barriers to entry. For US-based opportunities, the firm looks to leverage its connections in China. Broad areas of interest include niche manufacturing, consumer products, and business services. The Firm does not invest in start-ups or distressed businesses. Trustar Capital is based in Hong Kong.


Deal Context for Buyer #
Overall 31 of 64
Sector: Automotive 2 of 3
Type: Secondary Buyout 7 of 12
Country: Germany 1 of 1
Year: 2017 2 of 6
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-04-25 Polymatech Japan Co.

Tokyo, Japan

Polymatech Japan Co. Ltd. is a manufacturer of polymer parts with a specialty in polymer material compounding. Polymatech serves customers in different industries including automotive and consumer electronics.

Sell -
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-05-18 Aavid Thermalloy

Concord, New Hampshire, United States

Aavid Thermalloy provides a broad range of technologically advanced thermal management solutions for aerospace and defense, telecommunication, LED lighting, server, data center, consumer electronics, transportation, and industrial applications to customers all over the world. Aavid Thermalloy is based in Concord, New Hampshire.

Sell -

Seller Profile 1

SELLER

Deutsche Beteiligungs

Frankfurt, Germany

Investor Investor Investor Investor Investor


Category Private Equity Firm
Founded 1965
PE ASSETS 2.7B EUR
Size Large
Type Sector Agnostic
DESCRIPTION

Deutsche Beteiligungs is a publicly-traded German mid-market private equity firm focused primarily on management buyout transactions. The firm pursues companies with skilled management, strong market positions, positive earnings, and the potential to build additional value. Prospective companies typically generate annual sales of €50 to €500 million. The Firm's target transaction size ranges from €50 to €250 million. Sectors of interest include automotive supplies, fine chemicals, industrial services, logistics, machine/plant construction, and measuring/automation technology. Deutsche Beteiligungs was established in 1965 and became publicly-listed in 1985. The Firm is based in Frankfurt.


Deal Context for Seller #
Overall 14 of 39
Sector: Automotive 4 of 4
Type: Secondary Buyout 4 of 12
Country: Germany 11 of 32
Year: 2017 3 of 5
PREVIOUS DEAL
DATE TARGET DEAL TYPE VALUE
2017-05-02 Romaco Pharmatechnik

Karlsruhe, Germany

The Romaco Group develops and manufactures machines and complete lines for packaging and processing applications. The group’s products can be categorised into two segments: The first is filling, dosing and packaging machines and lines for the pharmaceutical and cosmetic industries (‘Packaging’). Romaco focuses on technically sophisticated flexible machines for medium-batch production environments, which are currently benefiting from the strong global expansion of generic drug producers and contract packers (a company that packages drugs for other pharmaceutical producers). These include blister-packaging and cartoning machines as well as aseptic filling lines for liquids.

Sell €150M
FOLLOWING DEAL
DATE TARGET DEAL TYPE VALUE
2017-05-16 Schuelerhilfe

Gelsenkirchen, Germany

Schuelerhilfe is an operator and franchisor of site-based and online tutoring in the DACH region. The Company offers tutoring services focused on improving students' academic outcomes and progression, along with an expanding adult education offering. It offers tailored and focused, small-group and one-on-one tutoring sessions held both in-person and online. Schuelerhilfe was formed in 1974 and is based in Gelsenkirchen, Germany.

Sell €42M

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