Rivean Capital acquires 2Connect from IK Partners
Thursday 16th June 2022
IK Partners’ (IK) IK Small Cap II Fund (IK SC II) has agreed to sell Dutch cable and connectors manufacturer 2Connect to Rivean Capital; the company’s management will be reinvesting in the deal.
Rivean Capital — a leading European PE investor in middle market transactions with operations in the DACH region, Benelux and Italy. Founded by in 1982; recently rebranded from Gilde Buy Out Partners.
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.
2Connect — designer, developer and assembler of innovative, customized interconnection solutions for customers in high-growth end markets, including off highway, semiconductor equipment, machine building and medical. CEO: Marc van der Put.
Key Points
- Financial terms were undisclosed.
History
IK invested in 2Connect in November 2018 and since then, the Company has more than doubled its revenues and expanded at a double-digit CAGR, driven by:
- Continued secured positions with high-growth customers;
- International expansion and a strong capability to scale operations;
- The acquisitions of Wtec (2020) and Büschel Connecting Systems (2021).
Following the succession of the founder as CEO and a successful integration of the two add-ons, the shareholders decided to attract a new partner to support the management team in its new growth phase.
Investment Rationale
Suppliers of critical components for high-tech original equipment manufacturers continue to attract strong interest from investors; the interconnect space in particular is very attractive due to the increasing demand for customised connectors to enable megatrends of growing electrification, automation and use of sensors.
2Connect’s track record of consistent growth, its entrepreneurial management team as well as its ability to maintain high standards for demanding customers while scaling up the business operationally means it is uniquely placed to capitalise on continued positive megatrends driving growth of automation and digitisation, and increasing demand for sensors and advanced connectors.
Investment Objectives
Leverage Rivean’s relevant end-market experience and a track record of scaling companies through buy-and-build strategies to build on 2Connect’s momentum and support them in the next phase of development and growth.
Investment Professionals
- Sander van Vreumingen, Partner at IK and Advisor to the IK SC II Fund;
- Tom Muizers, Senior Partner at Rivean Capital.
References
Notes
- This is Rivean Capital’s 3rd transaction in the Technology Hardware sector and 35th transaction in the Netherlands. https://mergr.com/rivean-capital-acquires-2connect-bv
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