The Industri Kapital 2004 fund has entered into an agreement to acquire DSI (DYWIDAG-Systems International GmbH), the global provider of tensioning products used in bridge building, slope stabilisation and mining.
DSI is a market leader in the development, production and application of post-tensioning and geotechnical (steel) fastening parts and systems. The high value added safety/durability critical products are used in bridge building, slope stabilisation and mining. Head-quartered in Germany, DSI has over 1,100 employees globally with operations across Europe, Asia-Pacific and the Americas.
With a turnover of approx. €300m in 2004, DSI has demonstrated an annual average growth of above 10% since 2000. The business has a strong track record of successfully acquiring and integrating companies, particularly in the mining segment.
“DSI benefits from an excellent brand reputation and market leading position together with a strong track record. We will work closely with the management team to accelerate the profitable growth of the business” commented Detlef Dinsel, Partner at Industri Kapital, adding “We intend to apply Industri Kapital’s proven value creation approach to develop the business further. In particular, we intend to pursue appropriate add-on acquisition opportunities, improve the overall business efficiency and take advantage of organic growth opportunities.”
The business is currently part of Walter-Bau, one of Germany’s large construction companies, which is in administration. DSI has been a separate entity from the parent company and given its financial strength / profitability was identified as a potential sale candidate prior to the insolvency process. Given limited business overlap with the remainder of the Walter Bau Group DSI has not been impacted by the insolvency of the parent company. The current management team will stay with DSI and will take a significant stake in the equity of the company.
“Whilst DSI has made strong progress over the past few years in terms of both solid financial performance and successful acquisition, we believe there is plenty of opportunity for further growth of the business. We are very pleased to have Industri Kapital as focused new owners and we look forward to continuing to develop the company together” commented Chief Executive Eric van Lammeren.
The transaction is subject to customary merger control approvals.
Eric van Lammeren, CEO, DSI
Phone: +49 171 5567499
Detlef Dinsel, Partner, Industri Kapital
Phone: +49 172 9121602
Anne Holm Rannaleet, Partner & Information Director, Industri Kapital
Phone +46 8 678 95 50
Industri Kapital is a European private equity firm with Nordic roots, managing close to 4 billion euros in fund commitments. Since 1989, Industri Kapital has acquired 50 European companies. The current portfolio encompasses 21 companies with a total turnover close to 7.5 billion euros.
Industri Kapital invests mainly in mid-sized companies with strong cash flow and profit improvement potential, operating in mature industries with fundamental underlying growth. Previous IK investments in the construction and mining sector include Paroc, Addum, Consolis, Laho and Dyno Nobel.
Industri Kapital’s previous and current investments in Germany include Gardena, Poggenpohl (via Nobia) and Pfaff Haushaltsnähmaschinen (via VSM Group) and i-center.