Four transactions mark strong start to year: Equistone continues momentum from 2022
With a new platform investment and three add-on acquisitions by portfolio companies, Equistone’s DACH/NL team has recorded a strong start to 2023, despite challenging macroeconomic conditions.
In January, we extended our track record of investing in the fast-growing business services sector with the acquisition of BUKO Traffic & Safety, a leading provider of outsourced traffic and safety management solutions in the Netherlands.
In February, we supported our portfolio company TIMETOACT GROUP – an IT services specialist for both mid-sized and large corporations – in its acquisition of WCA Walldorf Consulting and target Software Solution, sister companies and proven specialists in the consulting on, and implementation of, cloud-based SAP solutions. This marks the fourth acquisition for TIMETOACT GROUP since we first invested in the business in June 2021, and continues our strategy of bolstering its position within the high-quality IT services market and expanding its geographical presence, particularly in the US.
Dutch portfolio company Andra Tech Group has also been active, having recently announced two strategic add-ons. The acquisition of metal precision specialist Mayer Feintechnik in December of last year was followed in February by a deal for DKH Metaalbewerking, a specialised manufacturer of complex metallic parts and components which instantly strengthened Andra Tech’s position in its home market.
High deal traffic & successful buy-and-build strategy are the focus in 2023
The year’s impressive start comes off the back of a strong 2022, which saw the team execute two successful exits, six add-on acquisitions by DACH/NL portfolio companies and two significant platform investments - leading cybersecurity provider eperi and the Swiss filter specialist SF-Filter.
The acquisition of two communications specialists, SKG and Muth, by Belgian network supplier Amadys marked an important milestone for our integrated strategy to form a pan-European full-service provider for connectivity solutions. On a similar note, by acquiring Tampa-based Dietzgen Corporation, Swiss portfolio company Sihl, an international supplier of printable media in the growing digital printing market, took a major step towards expanding into the lucrative US market. Our investment in sportgroup provides another example of a targeted buy-and-build strategy’s role in accelerating international growth and vertical integration.
Sectoral investment approach is key
A key factor behind our long-standing success has been the depth of our team’s industry expertise. In the view of Marc Arens, Senior Partner and Country Head for the DACH/NL region, this experience, combined with “Equistone’s sectoral approach and culture of close collaboration with colleagues from France and the UK” allows the firm “to draw on a broader industry network and analyse business models from multiple angles". It’s an approach he regards as “the central pillar of Equistone’s investment strategy” and one which has been in instrumental in ensuring a diversified and high-quality portfolio.