Silver Investment Partners supports growth outlook
PTF Takes Over Heinz Kehl & Sohn GmbH
Frankfurt am Main/ Stollberg August 23, 2012
Milestone reached in the implementation of the buy-and-build strategy of PTF — Complementary product portfolios of the two companies are an ideal match — Planned growth via expansion of the client base and investments in productive capacity
With the support of the majority owner Silver Investment Partners (SIP), PTF Holding GmbH, a leading medium sized company active in precision mechanics and a manufacturer of complex milled and turned parts and assembly units (CNC procedure) located in Stollberg/Saxony, has acquired Heinz Kehl & Sohn GmbH, a manufacturer of turned and milled parts for the fields of hydraulics and pneumatics located in Hattersheim near Frankfurt am Main. Going forward, Heinz Kehl & Sohn GmbH will be run as an independent company under the umbrella of PTF Holding, which also includes PTF Pfüller GmbH & Co. KG. As a consequence of the acquisition, sales of the group, with locations in Stollberg/Saxony, Jena and Suzhou, China, will increase by approximately EUR 5 million to an estimated figure of about EUR 16 million for the year 2012. Reinhard Kehl, currently the sole owner and son of the founder will continue to be active as Managing Director for Heinz Kehl & Sohn GmbH during an interim period. The acquisition of Heinz Kehl & Sohn GmbH is financed by PTF and SIP from internal funds as well as with debt. The parties have agreed not to disclose the purchase price.
“Heinz Kehl & Sohn GmbH possesses excellent process knowledge and a highly automated production facility and the product portfolio is complementary to ours. For that reason the main focus is not on cost cutting, but rather on joint growth. With this acquisition we are expanding our value added chain, our product portfolio as well as our client base and we will continue to invest,” says Oliver F. Zintl, Managing Director of the PTF group.
“The takeover by PTF and the partnership with SIP open up completely new opportunities for us – both from a financial perspective and via cooperation in distribution and production. At the same time, this transaction enables us to develop a structured succession plan jointly with SIP and to make the company fit for the future,” says Reinhard Kehl.
“The transaction is a first milestone in the implementation of our buy-and-build strategy for our portfolio company PTF,” says Philipp Amereller, Managing Partner at Silver Investment Partners. “Both companies are already excellently positioned individually but jointly their potential is even greater. In addition to sustainable organic growth, we are planning additional acquisitions in order to improve further the positioning of the group. Of particular interest are companies that have a customer focus in the fields of medical technology and implant production, in the optical industry, laser industry or aviation.”
Highly Specialized Company with a Long Tradition and Established Client Relations
Heinz Kehl & Sohn GmbH looks back on a 50 year history and is specialized in the individual and serial production of components with extremely low tolerances and high surface quality. The focus is on the machining processes turning and milling as well as the polishing of semi-finished and finished products. The manufactured hydraulic pumps and parts are used particularly in commercial vehicles, for example in the agricultural sector as well as in infrastructure machines. Following a period when the company grew particularly with its existing clients, increasingly new customers will be acquired. The client relations of PTF are to be used for this and our individual distribution function is to be strengthened, for instance via increased appearances at trade fairs and direct marketing.
PTF Successfully Advances Along Its Growth Path with the Support of SIP
With the acquisition of Heinz Kehl & Sohn GmbH, the PTF Group is successfully pursuing its growth path with the support of its majority owner SIP. Since the investor became active in February 2011, sales have already increased significantly and the number of employees in Germany has increased from 110 to 130. Including the employees at the production site in Suzhou, China, total group employees amount to 160. In addition to significant investments in production capacities, a new controlling tool was introduced and internal systems and processes were optimized since the investor came on board. In order to further strengthen the technology leadership, approximately 15 percent of sales are reinvested annually in production facilities and this high level of investments is also to be maintained in the future. PTF has a broad customer base in attractive high-tech industries some of which are characterized by significant expansion such as medical technology, laser technology as well as the semiconductor industry and anticipates growth especially in technologically demanding industries with a correspondingly higher share of value added.
With the acquisition of Heinz Kehl & Sohn GmbH, SIP has already successfully completed its fourth transaction in less than two years. The focus of SIP is on the entrepreneurial long-term support of the portfolio company and it aims to act in an entrepreneurial spirit and to support medium-sized companies with above average growth potential in their further development. The focus is on companies with sales between EUR 5 million and EUR 100 million in Germany, Austria and Switzerland. In the process, the portfolio companies benefit from the knowledge, network and long-term orientation of the investor. SIP deliberately refrains from using classical fund structures with limited investment terms and instead finances transactions from the own funds of the founding partners and a pool of investors. SIP was advised during the transaction by Ernst & Young (finance) and SJ Berwin (legal and taxes).
About Kehl & Sohn GmbH
Kehl & Sohn GmbH was founded in 1966 and for the past 12 years has emphasized the individual and serial production of components with extremely low tolerances and high surface quality. The focus is on the machining processes turning and milling as well as the polishing of semi-finished and finished products. Metals processed include special brass (AETERNA®), copper, aluminum, cast aluminum, gray cast iron, steel, stainless steel and precious metals for all industries. The company is in the possession of modern machinery, which guarantees both flexibility and quality in the production of highly complex individual pieces and series. With the use of robotics, the entire machinery can be operated by only 25 employees.
Additional information is available at: https://www.kehl-cnc.de/
PTF is a leading international company which produces mechanical precision parts. The company, which is located in Stollberg/Saxony with further locations in Jena and Suzhou, China, had sales of about EUR 11 million in 2011. 160 employees are active at PTF in the processing of various materials – aluminum alloys, stainless steel, titanium, plastics and special materials – to form precision parts and assemblies with highly complex geometries and fine contours as well as microscopic burr free parts with precise surfaces for high-tech industries. Products of PTF are used in the semiconductor industry, the food industry, medical technology and implants, laser industry and aerospace industry.
About Silver Investment Partners
Silver Investment Partners, located in Frankfurt am Main, is an independent equity investor in small and medium sized companies in Germany, Austria and Switzerland. As an entrepreneurial, experienced and reliable partner, Silver Investment Partner takes both majority and minority stakes in companies with sales between EUR 5 million and EUR 100 million with a focus on companies with sales between EUR 10 million and EUR 50 million.
Among the classical investment scenarios for medium sized companies are succession planning, changes in ownership structure, divestments, growth financing as well as selected insolvency cases. In the focus of the investment strategy are companies in the sectors business services, industry and manufacturing, consumer goods and retailing, health care/medical services, alternative energies, environment and related industrial technologies with attractive potential for growth and value added.
Additional information is available at: http://www.silver-ip.com/
Hering Schuppener Consulting
PTF takes over Heinz Kehl & Sohn GmbH
(PDF, 536 KB, August 23, 2012)
PTF übernimmt die Heinz Kehl & Sohn GmbH ( German)
(PDF, 540 KB, August 23, 2012)
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