Blackstone acquires IK Partner’s stake in Schenck Process
Monday 25th September 2017
IK Investment Partners has sold its stake in German measuring and processing technology company Schenck Process to Blackstone after a decade-long holding period.
IK Partners — a leading Pan-European PE firm focused on investments in the Benelux, DACH, France, Nordics and the UK with over three decades of experience in creating lasting value. Founded by Bjorn Saven in 1989. CEO: Christopher Masek; AUM: c.$14bn.
Blackstone — an American alternative investment management company based in NYC. Founded by Steven Schwarzman and Peter Peterson in 1985. CEO: Steven Schwarzman; AUM: $880.9bn.
Schenck Process — a global market leader in measuring and process technology; develops and manufactures innovative solutions for a wide range of industrial processes across a variety of industries, including food, chemicals, mining and construction. CEO: Andreas Evertz.
Key Points
- Financial terms were not disclosed.
- According to Debtwire, Schenck was marketed with a 2017 EBITDA of €85m and the company expected a deal value of 10x earnings with 5.5x leverage.
Investment History
During the IK 2007 Fund’s ownership, Schenck has:
- Transformed its business focus from a mechanical manufacturer to a service and integrated solutions provider;
- Achieved significant growth by expanding the product portfolio;
- Entered new markets both organically and through selected add-on acquisitions.
Investment Rationale
Blackstone is evaluating further opportunities across Europe, with a strong commitment to the German market. Blackstone has a proud record of working with growing companies and supporting their strategies; Schenck is an innovative and unrivalled leader, and Blackstone sees considerable opportunity to grow the business.
Investment Objectives
Leverage Blackstone’s significant sector experience to:
- Grow the business both organically and through acquisitions in its various end markets;
- Invest in innovation and develop new technologies to accelerate international growth.
Investment Professionals
- Detlef Dinsel, Partner at IK Investment Partners and advisor to the IK 2007 Fund;
- Lionel Assant, Head of European Private Equity at Blackstone.
References
Updates
- 14/10/21: Blackstone has kicked off the sale of Schenck Process, potentially generating as much as EUR 1.5bn in proceeds. The US buyout group distributed information memorandums via sell-side adviser Goldman Sachs in recent weeks after engaging in a series of fireside chats with mostly financial buyers, according to the sources… https://www.unquote.com/dach/news/3025232/schenck-process-owner-blackstone-launches-sale-process
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