News
BC Partners Funds acquire the SGB Group
Funds advised by BC Partners are acquiring the SGB Group, a leading European manufacturer of transformers, for an undisclosed sum financed mainly by equity. The acquisition is subject to approval by the anti trust authorities.
The SGB Group (www.sgb-trafo.de) supplies network transformers, power transformers, oil-immersed distribution transformers and cast resin transformers in over 50 countries around the world. The transformers are manufactured at four production facilities in Germany (Regensburg and Neumark), The Netherlands (Nijmegen) and Malaysia (Nilai) and the company’s primary customers include utilities, industrial companies and wind-turbine manufacturers. The group was separated from RWE, the German electric power and natural gas public utility, in 2004 and following a successful restructuring, was able to double its revenues and increase profitability even more over the past few years. In 2007, the SGB Group earned around EUR 500 million in revenues and employed approximately 1,200 staff.
Commenting on the acquisition, Stefan Zuschke, Managing Partner with BC Partners said:
"The SGB Group is very well positioned to take part in the attractive growth of the transformer market which is driven by increasing investments in energy infrastructure around the world. We look forward to working alongside management in continuing their successful expansion strategy and to supporting the group with the financial means to do so." This is the second acquisition by BC Partners in 2008 after the purchase of the Turkish supermarket chain Migros.
The sale process was led by Leonardo & Co. (formerly Drueker & Co.). BC Partners Funds were advised by UBS, Ernst & Young and Freshfields.