Sale of Schenk Process
HG Capital Trust PLC
21 August 2007
The following is the text of a press release issued by HgCapital, which manages
the investment portfolio of HgCapital Trust plc alongside those of other
institutional clients. On completion of the sale of Schenk Process, HgCapital
Trust plc, a listed investment trust giving investors the opportunity to
participate in all of HgCapital's investments, will realise a total of £33
million. The impact of the realisation on the net asset value of HgCapital Trust
plc would be an increase of approximately 80p per share over the published 31st
May 2007 net asset value. The deal is subject to cartel clearance with funds
flow expected in October-November 2007.
HgCapital sells Schenck Process to Industri Kapital
Schenck Process is to embark on further expansion with the support of Industri
Kapital following two years of successful growth under the stewardship of
HgCapital. Industri Kapital has signed an agreement to acquire a majority stake
in the company with HgCapital.
Since Schenck Process was acquired by HgCapital from Durr AG in 2005, it has
built an even stronger and strategically well-positioned business, growing the
workforce to around 1,800 employees; increasing revenue to €350 million per
annum; and expanding its international footprint organically and by acquisition.
It was during HgCapital's tenure that Schenck Process acquired Stock Equipment,
a strategically important move into the coal power equipment sector that
resulted in a further diversification of the group.
Today Schenck Process is one of the global market-leading providers of
industrial weighing, feeding, screening and automation equipment and solutions.
It benefits from a multitude of growth opportunities and a very robust and
balanced business model. It has significant operations in Europe, North and
South America, China and Australia and serves a diversified customer base across
a wide range of industries, including Heavy, Light, Mining, Power and Transport
Automation. As the only truly global company in the market coupled with a
leading aftermarket service platform, Schenck Process is in a unique position to
supply its broad blue chip customer base.
Detlef Dinsel, Partner Industri Kapital commented: 'Schenck Process is the
well-established, clear global market leader in the industrial process
engineering solutions sector and enjoys a strong financial track record.
Together with the management team, our intention is to continue to build on the
company's strong market position. We intend to continue its acquisition strategy
as well as growing market share and expanding into new markets.'
Dr Jochen Weyrauch, President & CEO Schenck Process commented: 'We welcome the
investment by Industri Kapital with whom we share similar visions and business
philosophies. We would like to thank HgCapital for a fruitful and constructive
partnership over the past two years; it has provided valuable support during a
crucial phase in the development of the company. Schenck Process has grown
strongly through its ability to serve customers better than its competitors and
the management team and employees can be justifiably proud of this success'.
Martin Block, Head of HgCapital Germany, said: 'We have been delighted with our
investment in Schenck Process. It has been a pleasure to work alongside and
support such a dynamic management team and this shows what can be achieved by a
partnership approach. We are proud to have supported the company as it has grown
and developed over the past two years and I have every confidence that it will
continue in a similar manner. We wish Industri Kapital and the management team
every success for the future.'
HgCapital was advised by Greenhill and Clifford Chance. Industri Kapital was
advised by Sal. Oppenheim, Lazard and Freshfields.
The transaction is subject to customary merger control approvals.
Contacts:
Industri Kapital:
Detlef Dinsel, Partner
Tel: +49 40 369 8850
Charlotte Laveson, Communication Manager
Tel: + 46 8 678 95 51
Schenck Process:
Stewart D. Murdoch, Director Business Development and Marketing
Tel: +49 61 51 32 2814
HgCapital:
Dr Karsten Hartmann, Partner, HgCapital Munich
Tel: +49 89 25 54 95 517
Joachim Drees, Director, HgCapital London
Tel: +44 20 70 89 79 40
About the companies:
Industri Kapital
Industri Kapital is a European private equity firm with Nordic roots, managing
close to
4 billion euros in fund commitments. Since 1989, Industri Kapital has acquired
64 European companies. The current portfolio encompasses 20 companies with a
total turnover close to 8.6 billion euros. Industri Kapital invests mainly in
mid-sized companies with strong cash flow and profit improvement potential,
operating in mature industries with fundamental underlying growth. Current
investments in Germany include Sport Group, Minimax and DYWIDAG-Systems
International (DSI). Past investments include and GARDENA. For further
information: www.industrikapital.com
Schenck Process
Schenck Process, headquartered in Darmstadt, Germany, is a global market leader
of solutions in measuring and process technologies in industrial weighing,
feeding, screening and automation. Schenck Process develops, manufactures and
markets a full range of solutions, products and turnkey systems on the basis of
combining process engineering expertise, reliable components and field-proven
technology.
Schenck Process is organised along International Business Segments, namely:
Heavy: Cement, Gypsum, Sand & Gravel, Steel and NF Metals
industries
Light: Chemicals, Food, Pharmaceuticals and Plastics
industries
Mining: Mining industries
Power: Coal-Fired Power Plants and associated industries
Transport Automation: Logistical processes - road and rail
Employing over 1,800 staff, Schenck Process has activities in more than 40
countries and operates 14 state-of-the art assembly facilities globally. For
further information: www.schenckprocess.com
HgCapital:
HgCapital is a private-equity investor in the European mid-market. We focus on
investments with an enterprise value in the range of €50-500 million. Our
business model combines sector specialisation with dedicated, pro-active support
to our portfolio companies as well as the corresponding management expertise
across all phases of the investment process.HgCapital manages more than €2.7
billion for some of the world's most respected institutional and private
investors. Our goal is to achieve outstanding results for our investors,
management team and intermediaries.
Further information on HgCapital can be found at www.hgcapital.com.
This information is provided by RNS
The company news service from the London Stock Exchange
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