M & A

Analytik Jena: not without my daughter

Analytik Jena AG producer of measurement engineering has repurchased a 51 percent interest in its subsidiary AJZ Engineering for a  low six-figure sum. Management states that the subsidiary equips entire laboratories and clinics above all in Russia and Arabian countries. Analytik Jena intends to restructure its daughter company, realigning it and consolidating it entirely by 2016. Over the next two years, AJZ must produce an operating profit on a turnover of 40 million. At present, the planning company’s order book stands at 100 million Euros. Indeed Analytik Jena points out that it is still obliged to stand major bond for its subsidiary

In September, with an increase in capital, the Prime Standard listed parent company generated a pre-tax revenue of 24 million Euros. Subsequent to the capital transaction, the shareholder Endress+Hauser possesses 47% of Analytik Jena to which it intends submitting a public purchase offer.

Eckert & Ziegler: Growth in the United States

Eckert & Ziegler has purchased the business for prostate cancer implants from the United States concern Biocompatibles Inc., for five million US Dollars. According Eckert & Ziegler Biocompatibles, the fourth largest supplier of these products on the US market, stopped distributing them in May 2013 because they were faulty. E&Z is hoping to correct the faults as soon as possible.

Biocompatibles’s turnover for 2012 was some 8 million Euros. The branch purchased is still a loss maker, and before getting back into the implant business Eckert & Ziegler are expecting to post a loss of up to 1.2 million Euros. Prime Standard listed E & Z, however, forecast regaining Biocompatibles’s clientele and expect to sell the improved products on the European market, It also intends to use the new branch to bolster distribution of  medical equipment in the US.

Grohe: The bathroom furnishing company becomes Japanese

Grohe AG the faucet manufacturer has passed into Japanese ownership for almost three thousand million Euros. Its Asian competitor Lixil together with the Development Bank of Japan purchased 88% ownership of the renowned company from financial investors TPG Capital and Credit Suise.  Grohe announced that they expect the transaction to be concluded by the end of 2014. The stock market quotation that the old owners had mooted is no longer expected to be on the agenda. The purchase also includes Grohe’s Chinese subsidiary Joyou AG which, management affirms, will remain independant within the Japanese group – as will Grohe itself. The transaction has yet to be approved by the antitrust authorities.

Grohe has a chequered past on the capital markets. The original proprietors sold their majority family holding for 900 million Euros to BC Partners who later withdrew Grohe from the stock market. Then, in 2004, TPG e Credit Suisse acquired the company for 1.5 million Euros and launched a programme of severe belt-tightening. In 2005, this led to the comment about asset-stripping locusts and the part private equity has to play in German society. Grohe’s turnover in 2012 was 1.4 thousand million Euros.