Deutsche Beteiligungs is investing in Multimon, which provides fire protection systems. The firm’s Fund VIII will acquire the majority of shares from Multimon founder and other shareholders as part of a management buyout. DBAG will co-invest around 8.1 million euros alongside Fund VIII. Multimon’s management team will retain a stake in the business.
Deutsche Beteiligungs AG (DBAG) is investing in Multimon AG (Multimon), a leading provider of fire protection systems. Within the scope of a management buyout (MBO), DBAG Fund VIII (which is advised by DBAG) will acquire the majority of the shares from the Multimon founder and other shareholders. DBAG will co-invest around 8.1 million euros alongside the fund, which means that around 17 per cent of the shares will be attributable to it in the future. The Multimon management team will also retain a stake in the business. Closing of the purchase agreement is subject to approval by antitrust authorities. The parties have agreed not to disclose the terms of the sale. With the investment in Multimon, DBAG is structuring a further MBO which will solve the issue of succession in a family-owned business. In eleven out of the 13 MBOs structured over the last three years, company founders or family shareholders chose DBAG as their partner to launch the next step in their company’s development.
The Multimon MBO is the first transaction of DBAG Fund VIII, whose investment period started on 1 August 2020. The fund’s launch is associated with significantly higher income for DBAG from Fund Investment Services. Like its predecessor DBAG Fund VII, this fund will also invest in mid-sized companies, predominantly in German-speaking countries. DBAG Fund VIII has raised commitments of 1.1 billion euros, of which 255 million euros are attributable to the co-investment agreement with DBAG.
Multimon (www.multimon.info) usually plans turnkey fire protection systems. In other words, it delivers everything from a single source – from planning to installation and right through commissioning. The systems are installed predominantly in high-rise buildings, shopping centres, warehouses, production plants, logistics centres, underground car parks, or listed buildings. They comprise fire alarm systems and other fire extinguishing equipment such as sprinkler systems and systems using water mist, gas or foam to fight fires. Multimon belongs to the providers that can offer all material systems. Most of the system components are not produced inhouse but are procured from other manufacturers instead. The company’s key know-how lies in the efficient conception, installation and maintenance of the systems, in line with existing regulations. Fire protection regulations are becoming tighter; previously installed systems must be maintained regularly and retrofitted if necessary. This recurring service business already accounts for around a quarter of total output, which amounted to around 93 million euros in 2019.
The company, which has its headquarters in Kirchheim near Munich, was established in 1982. It now has seven locations in Germany and a further eight in Eastern Europe. The company generates just under 70 per cent of its revenues in Germany; Poland is its most important international market, accounting for a further 20 per cent. Multimon employs a workforce of around 520 employees.
“Fire protection is an attractive market. We entered this market two years ago and brought our experience to bear with Kraft & Bauer,” said Dr Rolf Scheffels, member of DBAG’s Board of Management, to mark the signing of the contract last Friday. “Multimon’s strong market position appeals to us, alongside the prospects for attractive organic and inorganic growth. As the number of installed systems increases, we will also see further growth in the attractive service revenues.”
Edward Skube, Chairman of Multimon’s management, sees DBAG as the right partner for the company’s further development: “Our market is in motion – our agreement with DBAG and DBAG Fund VIII will allow us to seize the opportunities it presents,” the manager stated.
Deutsche Beteiligungs AG, a listed private equity company, initiates closed-end private equity funds, and itself invests alongside those funds predominantly in well-positioned mid-market companies with development potential. DBAG focuses on those industry sectors where Germany’s ‘Mittelstand’ is strong in international comparison. A growing portion of DBAG’s equity investments is deployed in its new focus sectors of broadband/telecommunications, IT services/software and healthcare. Its long-term, value-enhancing entrepreneurial investment approach makes DBAG a sought-after investment partner in the German-speaking world. DBAG Group’s assets under management or advisory amount to 2.5 billion euros.