Cathay Capital Private Equity (“Cathay Capital”) is pleased to announce it will acquire a majority stake in German automobile supplier E. WINKEMANN GmbH (“Winkemann”). Winkemann is as of today owned by funds advised by Equistone Partners Europe (“Equistone”) and the incumbent management team – who will both remain involved as shareholders and minority investors. Cathay Capital will invest through its Sino-French MidCap vehicle.
Capitalizing on its platform spanning three continents and its vast international experience, Cathay Capital intends to support Winkemann in its geographical expansion strategy, primarily in China, where current clients need the company to be close to them, and then in Asia and the USA in the coming years.
Over its 80-year history, Winkemann has become a major manufacturer of precision-stamped metal parts and currently employs 380 people. The company is based in North Rhine-Westphalia, Germany, and primarily supplies prestigious German and international automobile suppliers and manufacturers around the world. The company has recorded strong growth in recent years, increasing its turnover from c.€66 million in 2012 to c.€91 million in 2017 and growing by more than 10 per cent in the past year alone.
Dr. Bernd Sent, Managing Director of Winkemann, stated: “We have chosen Cathay Capital Private Equity as a new partner in our capital structure to help us with our ambitious international expansion strategy and the extension of our production site in Plettenberg. Our common ambition is to grow from the solid positioning we have built in Germany and Europe to a new stage of growth on a global level. We are thankful to the Equistone team for their contribution since 2012 and welcome Cathay Capital Private Equity to support our international project.”
Andreas Holtschneider, Partner for DACH at Cathay Capital, added: “Cathay Capital’s teams are delighted to have been chosen by Winkemann’s management team and Equistone to support the company’s development beyond its current borders. Thanks to our unique ecosystem, we will provide Winkemann with our proven experience in partnering with companies looking to enhance their international dimension. We are looking forward to working with the management team and to contribute to the international success story of this German hidden champion.”
Mingpo Cai, President of Cathay Capital, concluded: “We are very happy to welcome Winkemann in the portfolio of Cathay Capital Private Equity. This second investment in Germany illustrates our strong local commitment following the opening of our office in Munich in 2016. The German market is very important for our ecosystem and for the Midcap Fund strategy in order to create new value beyond borders for our current and future portfolio companies. Winkemann exemplifies our local approach to investment, and we are confident that it will highly benefit from working with our team and unique platform across three continents.”
The financial terms of the deal are undisclosed and completion of the sale is subject to the approval of the relevant competition authorities.