STAR Capital Partners (“STAR Capital”), a leading European fund manager investing mainly in capital-intensive businesses, has come to an agreement with ThyssenKrupp AG, the German diversified industrial group to acquire the non-military parts of its ThyssenKrupp Marine Systems business.
Blohm & Voss Motor Yacht Palladium (ex Orca) - Superyacht Photography by Klaus Kehrls in Hamburg
STAR Capital will commit significant amounts of capital to the business to ensure that it is in a position to take advantage of growth opportunities in the future.
The businesses to be acquired by STAR Capital are Blohm & Voss Industries (“BVI”), a provider of highly complex marine components; Blohm & Voss Repair (“BVR”), a ship repair and conversion business; Blohm & Voss Oil Tools (“BVOT”), a provider of pipehandling equipment in the oil and gas sector; and Blohm & Voss Shipyards (“BVS”), a shipbuilder focused on luxury mega yachts. The group has annual revenues of around €400 million and has over 1,500 employees, mostly in Hamburg.
Blohm & Voss is one of the great brands in the marine industry with a track record of engineering excellence, renowned for manufacturing “best in class” marine products and related services. These attributes are visible in each of the business divisions:
– BVI produces ship components, such as seals used in propulsion systems and stabilizers. BVI is considered the market-leader in terms of quality and reliability, the primary requirements for this industry.
– BVR is a ship repair and conversion business, focused on complex, time-critical projects such as cruise liner extensions, refits for the offshore industry and mega-yacht refurbishments.
– BVOT provides pipe-handling equipment, such as elevators and automated floor-hands to oil and gas rig operators and contractors.
– BVS designs and builds high-end bespoke mega yachts for high net worth individuals.
The newly acquired business will continue to be run by its experienced management team, led by Dr. Herbert Aly, Group CEO. Dr. Aly has been CEO of the business for six years. One of STAR Capital’s advisers, Ernst von Freyberg, will join the Board as non-executive Chairman. Mr. von Freyberg was previously the Vice-Chairman of the supervisory board of Blohm+Voss Holdings AG.
Commenting on the announcement, Tony Mallin, CEO of Star Capital, said “We are pleased to have acquired a world class German engineering business; one in which we intend to invest by providing a significant capital commitment to drive growth and job creation”.
Paul Gough, Partner at Star Capital, said “We look forward to working in partnership with the Blohm & Voss management team and employees. Blohm & Voss is an excellent brand that we believe can be further developed on an international scale.”
Blohm + Voss CEO, Herbert Aly, said “I have built a strong working relationship with STAR Capital over the last few months and I am looking forward to working with their investment team in order to make the business even stronger. Opportunities exist in each of the markets within which the businesses operate. We hope to take advantage of these opportunities with the backing of our new owners who share our vision for the business.”
The transaction is due to complete early 2012, subject to regulatory approval.
Today’s announcement marks the 6th acquisition completed by STAR Capital in Germany, following its investments in BUS Group, GWE GmbH, Abellio GmbH, GSES GmbH, Alloheim Senioren-Residenzen AG and Pepcom GmbH.
