Press & News
Private equity firm EMERAM invests in Drahtzug Stein Holding GmbH & Co. KG, a globally leading manufacturer of wire products
Munich, 10 November 2016 - Funds advised by the Munich-based private equity firm EMERAM Capital Partners GmbH ("EMERAM") are investing in Drahtzug Stein Holding GmbH & Co. KG ("Drahtzug Stein") in partnership with the owner family to accompany Drahtzug Stein on its future growth path. The owner family will retain a significant stake in Drahtzug Stein after completion of the transaction, which remains subject to antitrust approval.
Drahtzug Stein is a globally leading group which produces high-quality wire products in the areas of home appliances, bath & furniture, agriculture, automotive and medical technology. The traditional company has enjoyed 75 years of success in the market and currently produces at locations in Germany, France, Italy, Poland and the US. As a leader in quality, Drahtzug Stein has an outstanding market position and is considered a "hidden champion" of the industry.
Customers benefit from a comprehensive range of services and expertise in the field of wire processing and surface treatment, allowing even highly complex customer requests to be fulfilled. In the household appliances segment, Drahtzug Stein is the undisputed market leader for high-quality dishwasher baskets in Europe and the US.
Wolfgang Stein, MD of Drahtzug Stein, said: "We have successfully internationalised Drahtzug Stein over the past decades, and we have diversified our business model by expanding our wire processing expertise to serve new industries. In EMERAM we have found a capable, long-term partner for Drahtzug Stein's successful future. We look forward to working with EMERAM to realise our further growth potential."
Korbinian Knoblach, Founding Partner of Emeram Capital Partners, commented: "Drahtzug Stein is an innovative high quality supplier with a long tradition and an excellent basis for further growth. We see many attractive prospects in other international markets and in related business segments. As a leading manufacturer of high-quality wire products, the company has a first-class reputation among its customers, which will support our planned expansion of Drahtzug Stein."
Both the present MD and the present CFO of Drahtzug Stein, Wolfgang Stein and Peter Staab, will continue leading the company's operations on an interim basis. In the long term, they will then support the new management as members of the advisory board.
The equity capital for this transaction was provided by the owner family, EMERAM Private Equity Fund I, and the management team. The Fund was advised by GLNS (legal), PwC (finance, tax & operations), Estin & Co (commercial), GCA Altium (debt advisory), Ramboll Environ (environmental) and Willis Towers Watson (insurance).
The family owners of Drahtzug Stein were advised by cf:M (M&A) and Dentons (legal).
The roots of the traditional company Drahtzug Stein stretch back to the 19th century. In the mid-20th century the company was acquired by the present owner family Stein, and it has pursued a consistent path of development ever since. Today the company is one of the leading global manufacturers of complex wire products for industries such as household appliances. Drahtzug Stein stands out through its ability to flexibly fulfil customer requirements while maintaining the highest quality standards. It manufactures in proximity to its customers at a growing number of international locations while minimizing the total cost of ownership for its customers.
EMERAM Capital Partners is a leading equity investment company for SMEs in German-speaking countries. As a business development partner, we foster the long-term growth of our portfolio companies with capital and expertise.
The funds advised by EMERAM invest in the consumer, technology/software and service sectors. Their total volume currently stands at EUR 400 million. In general, the funds acquire a significant stake in the company and give the respective management team an opportunity to invest, too.