Frankfurt am Main / Übach-Palenberg April, 4 2011 – Cinven, the European buyout firm, today announced that it has reached agreement to acquire SLV Group (“SLV”, “the Company”) from HgCapital. Founded in 1979 by Franko Neumetzler, SLV Group is one of the fastest growing and most successful providers of lighting products in Europe. The value of the transaction is not being disclosed.
SLV, headquartered in Übach-Palenberg near Aachen, Germany, provides innovative residential and technical lighting products for indoor and outdoor use. Based on a unique vertically integrated business model which delivers competitive advantage in development, sourcing, logistics and distribution, the Company combines German innovation and European design with cost-efficient production via selected high-quality suppliers, mostly in Asia, with which SLV has long-standing relationships. Through its outstanding and well-managed value chain, SLV is able to offer high-quality products with innovative design at attractive prices combined with best service and delivery. The superior value proposition has continuously led to increases in market share both in Germany and internationally. Today, SLV operates subsidiaries and associated companies in Germany, France, Italy, Belgium, Switzerland, Hong Kong, the US and Russia. As a B2B mail-order business, the Company focuses on marketing its products through resellers in over 60 countries across the world and does not sell directly to end users. Under the leadership of Detlef Harms, Markus Dreihues and Toni Stumpf, SLV has developed into a leading European player in lighting which continuously outperforms the market.
Cinven has extensive experience and a wide breadth of expertise in the European consumer and industrial sector. The firm invests in market leading, successful companies to support their growth and further development.
Cinven partner Bruno Schick said: “SLV is an innovative company which operates a successful business model that delivers a superior value proposition for suppliers, partners and clients. SLV has significant potential and we are looking forward to supporting the proven management team in developing and growing the business. With our pan-European team and our office in Hong Kong, we can provide SLV with the additional expertise and an extended financial framework to further push the internationalisation of the business.”
Justin von Simson, German Head of HgCapital commented: “When we acquired SLV in 2007, we were impressed by the unique “SLV System”, its well-managed operations and its control over the value chain. It is impressive to see how strongly the Company navigated through the financial crisis over the last few years – clear evidence of its robust business model and that it is a well-run company by highly skilled and committed people. Together with the SLV management and Franko Neumetzler, SLV’s founder and shareholder, we supported the Company to expand its operations in Übach-Palenberg and to strengthen its established international distribution network. We view our ownership of SLV as a constructive and rewarding time and wish both SLV and Cinven all the best for the future.”
Detlef Harms, CEO of SLV Group said: “Together with HgCapital, we have brought about excellent development over recent years. With Cinven, we have found the ideal partner for the next stage of our development and are looking forward to successfully pushing SLV’s internationalisation.”
The transaction is subject to approval of antitrust authorities.
HgCapital was advised by Macquarie and Clifford Chance on the transaction. Cinven was advised by Altium Capital and Hengeler Mueller.
