Target Company Information

AG Capital and UnternehmensGut, long-term oriented mid-market investors, have jointly acquired a majority stake in Celltherm Isolierung GmbH, a leading manufacturer of cooling and freezing cells based in Gronau-Epe, Germany. The company has been a prominent player in its field for over 40 years, specializing in the production of polyurethane (PUR) insulated elements and doors for modular cooling and freezing cells. Founding partners Holger Bialdiga and Bart Verhoeven will retain minority stakes in the company while continuing their management roles.

Celltherm has set a standard for high-quality cooling solutions, manufacturing PUR-insulated components with integrated eccentric tension locks since 1982. Today, it stands as a prominent European manufacturer of discontinuously produced insulating panels, catering to a diverse clientele across the wholesale and retail food sectors, gastronomy, large kitchen catering, as well as industries requiring high-quality temperature-sensitive storage solutions such as pathology, pharmaceuticals, and laboratory technology.

Industry Overview

The demand for cooling solutions in Germany and Europe has seen substantial growth due to increasing requirements for food safety and quality assurance. With a focus on energy efficiency and sustainability, the refrigeration industry is evolving, pushing manufacturers to innovate and meet higher service expectations. As Europe pushes toward stricter regulatory standards on energy consumption, manufacturers like Celltherm are positioned to lead the way in developing sustainable refrigeration solutions.

The European cooling market benefits from a thriving food industry that requires reliable and efficient refrigeration solutions. As consumer preferences shift towards fresher, prepared food options, the need for advanced cooling technology will continue to grow. This evolution presents significant opportunities for manufacturers in this sector to expand their market presence and enhance their product offerings.

Additionally, demographic trends, including urbanization and changes in food distribution channels, are fueling the demand for innovative cooling solutions. The rise of e-commerce also introduces new challenges and opportunities in logistics and cold chain management, requiring companies to adapt swiftly to remain competitive.

Germany, being one of the largest markets for refrigeration solutions in Europe, presents significant growth potential for Celltherm. The expected increases in investment in industrial cooling systems and energy-efficient technologies signify a favorable environment for Celltherm to establish its presence and strengthen its market leadership.

Rationale Behind the Deal

The acquisition of Celltherm by AG Capital and UnternehmensGut aligns with their strategic vision of expanding the market reach and enhancing the company's operational capabilities. By partnering with established investors, Celltherm aims to bolster its client base across Germany and Europe while implementing a 'Buy-and-Build' strategy to scale operations efficiently.

The partnership is expected to facilitate a faster internationalization process, enabling Celltherm to capitalize on emerging market opportunities and enhance its competitive edge in the refrigeration sector. With AG Capital and UnternehmensGut's financial strength and market insights, Celltherm is well-positioned for sustainable growth.

Investor Information

AG Capital, based in Vienna, is an independent investment firm specializing in providing buyout and growth capital to innovative mid-sized companies in the DACH region. They emphasize long-term partnerships, offering both majority and minority investments while fostering sustainable and profitable growth strategies in collaboration with management teams of portfolio companies. Their investment strategy places a strong emphasis on ESG criteria to ensure responsible corporate governance.

UnternehmensGut operates as a long-term mid-market investor, focusing on equity investments from German institutional investors. Their Evergreen Fund supports established medium-sized companies in navigating succession planning, shareholder transitions, and growth initiatives. UnternehmensGut prioritizes maintaining stable company management and workforce retention, thereby fostering a cooperative relationship with management to drive long-term growth strategies effectively.

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This acquisition presents a promising investment opportunity for AG Capital and UnternehmensGut due to Celltherm's established market presence and strong potential for future growth. The strategic intent to expand its customer base and operational capabilities through a Buy-and-Build strategy positions Celltherm favorably in the evolving refrigeration market.

Furthermore, the ongoing changes in consumer behavior and compliance with environmental regulations present significant opportunities for Celltherm to innovate and lead in energy-efficient refrigeration solutions. This aligns well with the long-term investment approach of both AG Capital and UnternehmensGut.

Moreover, the continued involvement of founder Holger Bialdiga and Bart Verhoeven ensures that the company maintains its operational expertise and industry knowledge, which is vital for navigating the complexities of market expansion and innovation.

Overall, this deal is poised to be a sound investment, provided that the new shareholders effectively leverage their resources and market insights to capitalize on the rapidly growing demand for cooling solutions, particularly in Germany and broader European markets.

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