Deutsche Beteiligungs announces divestment of Grohmann Engineering to Tesla Motors
Exit will generate a positive value contribution in the first quarter of FY17
Deutsche Beteiligungs (DBAG) announced today that it has agreed the sale of Grohmann Engineering, a developer and manufacturer of plants for industrial automation, to strategic buyer Tesla Motors after almost 30 years as a portfolio holding. The financial terms of the agreement have not been disclosed but DBAG has confirmed that the sale price is higher than its most recent portfolio valuation and the exit will generate a mid-single digit positive value contribution in the first quarter of its current financial year to 30 September 2017.
DBAG’s investment in Grohmann dates from a growth financing by a predecessor company, which took a 25.1% stake through a capital increase in January 1987. DBAG assumed the entire interest in 1996 for its own portfolio; there was no parallel investment by a DBAG managed fund. Over the last 20 years, Grohmann has seen its revenues climb by over 6% pa to €123m in 2015, while the number of employees has tripled to c 700. In addition to DBAG’s 25.1% holding, Tesla is acquiring the 74.9% interest held by the company’s founder Klaus Grohmann.
Founded in 1984, Grohmann Engineering develops and manufactures production lines for industrial automation. The company has been a key contributor to developing technologies such as those required for the industrial production and assembly of lithium-ion batteries and the testing of microchips and wafers. In recent years, Grohmann has developed and implemented a number of production lines for German and international car manufacturers for producing battery cells and batteries for electric vehicles.
Grohmann is set to become the initial base for Tesla Advanced Automation in Germany, responsible for the design and production of several critical elements of Tesla’s automated manufacturing systems. Combined with its California and Michigan engineering facilities, Tesla believes the acquisition of Grohmann will make a significant contribution to improving the speed and quality of production, while substantially reducing capital expenditure required per vehicle.
Read Edison’s most recent research report on DBAG here.
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