Barclays Private Equity has agreed to acquire an 85% stake in the Novem Group, a global provider of real wood, aluminum and carbon trim for vehicle interiors. Company management will hold the remaining 15 percent. No financial terms were disclosed. Sellers include Taros Capital and 3i Group, which bought the company in 2004 from GS Capital Partners.
Barclays Private Equity and Novem company management are jointly acquiring the Novem Group consisting of CID Car Interior Design Holding GmbH and all subsidiaries. Novem is a provider of high-quality real wood, aluminum and carbon trim parts for vehicle interiors worldwide. The company has a global market share of 45 percent in the wood trim parts segment and is a supplier for nearly all of the premium car manufacturers around the world. This transaction is aimed at improving profitability and furthering company development by way of organic growth especially in Asia and the United States as well as by add-on acquisitions. The parties have agreed to keep the purchase price confidential.
The company, which was established in the Bavarian town of Vorbach in 1947, achieves an annual turnover of approximately 300 million Euros with its production of high-quality interior trim parts for instrument panels, center consoles, door linings and roof linings for customers including BMW, Mercedes, Audi, VW, Volvo, Range Rover, Rolls Royce, Maserati, Lincoln and Cadillac. In addition to wood trim parts, Novem has successfully extended its product portfolio in the past few years to include innovative aluminum and carbon trim parts, thus establishing itself as the only fullline provider of high-quality trim parts for vehicle interiors.
In 1995 the company, which was founded by Ernst Pelz, was sold to CVC and GS Capital Partners within the framework of a management buy-out, thus setting the course for its future strategic orientation. The brand name Novem was introduced in 1998 as part of this new orientation. A secondary buy-out by Taros Capital and 3i took place in 2004. In the future, Barclays Private Equity will hold 85 percent of the shares and Novem management will hold 15 percent.
“We are excited about the acquisition of the Novem Group. The company is excellently managed, has a top-notch customer base in the premium car segment and a respectively strong market position”, says Peter Hammermann, Co-Head of Barclays Private Equity. “The products are exceptional with regards to design, geometry and quality. This serves as an ideal point of departure for further growth in a highly attractive market and we aim to achieve this together with Novem management”, explains Dirk Schekerka, MD of Barclays Private Equity Germany.
“As a typical German medium-sized company, we have a strong entrepreneurial approach and place emphasis on quality and efficiency. Barclays Private Equity is known for its solid financing and systematic development of this type of mediumsized company. Therefore Barclays Private Equity is the ideal partner for us”, says Peter Mazzucco, CEO of the Novem Group. “We are looking forward to working together and to continue developing our market shares in Asia and America.”
The Novem Group has approximately 3,700 employees at nine production sites in Germany, Italy, Slovenia, the Czech Republic, China, the United States and Honduras.
Dr. Peter Hammermann, Dr. Jan Wiechmann and Dirk Schekerka are responsible for this investment at Barclays Private Equity.
About Barclays Private Equity
Founded in the UK in 1979, Barclays Private Equity is one of Europe's leading private equity investors, with 45 investment professionals in eight offices around the world. Over the last 29 years it has invested equity in more than 400 transactions, mainly mid-market buy-outs, with a value of over