Equistone sells Hornschuch to Continental

Funds managed by Equistone Partners Europe (“Equistone”) have reached an agreement to sell their majority stake in Konrad Hornschuch AG (“Hornschuch”) to Benecke-Kaliko. Hornschuch is a leading manufacturer of design, functional, and compact films, foam laminates, and artificial leather for industrial applications and the automotive sector. Benecke-Kaliko, the surface specialist which belongs to international technology partner ContiTech, plans to further expand its industrial business and open up new sales markets, particularly in North America, through this acquisition.

 

• ​​​Successful buy-and-build strategy at Hornschuch through add-ons in Germany and the USA
• Strong organic growth through an expansion of the product portfolio and new production centres

Hornschuch, which is headquartered in Baden-Württemberg, Germany, and has more than 1,800 employees working across four production sites in Germany and the USA, recorded revenues of €410m in the 2015 financial year. During its eight-year investment in Hornschuch following the acquisition of a majority stake in 2008, Equistone Partners Europe (then Barclays Private Equity) worked alongside the management and employees to further develop the company strategically, optimise its market position, and successfully address the consequences of the financial crisis so that jobs could be safeguarded and the business strengthened.

A combination of acquisitive and organic growth led to an almost threefold increase in Hornschuch’s revenues during this period, up from €140m in 2008. Hornschuch acquired fellow Baden-Württemberg-based business kek-Kaschierungen in 2009, the American manufacturer of foils and artificial leather O’Sullivan Films in 2010, and era Beschichtung, a business headquartered in Lower Saxony, in 2013. The company also strengthened its position as a leading and innovative surface specialist through the expansion of its product portfolio and the opening of new production sites.

Michael H. Bork, Managing Director and Senior Partner at Equistone, said: “Together with Hornschuch’s management team and its employees, we were able to deliver a positive example of how equity investors can decisively improve the direction and market position of investee companies by acting entrepreneurially. To lead a business to such strong growth is not only a fantastic outcome but also proof of the outstanding work of the employees and management. We see great potential for further, profitable growth for the Hornschuch Group as part of the Continental corporation and are confident that both it and Benecke-Kaliko will profit from this next step.”

Dr. Hans-Hinrich Kruse, CEO of Konrad Hornschuch AG, commented: “With Equistone’s support, the Hornschuch Group has grown dynamically in recent years. This combination with Benecke-Kaliko now presents an outstanding opportunity for further global expansion.”

Hornschuch will be integrated into the Benecke-Kaliko Group whilst retaining its name and branding. Michael H. Bork and Stefan Maser were responsible for the transaction on the side of Equistone. The financial terms of the deal are undisclosed and the transaction remains subject to approval from the relevant competition authorities.