Target Information

TBD Technische Bau Dienstleistungen (TBD) is a prominent provider of critical infrastructure construction services based in Friedeburg, East Frisia. Established in 2005, the company has developed a strong reputation as a regional champion, specializing in services and testing necessary for critical infrastructure projects. With a workforce of over 350 employees operating across six locations, TBD has achieved a total operating performance of 36.1 million euros in 2022. Its strategic location in Friedeburg positions the company as a key player in Germany's energy transition, known locally as the 'Energiedrehscheibe,' due to substantial investments aimed at enhancing energy infrastructure.

Organized into seven distinct business units, TBD has built a solid track record through projects like the weld seam tests conducted for the LNG terminal in Wilhelmshaven. This experience showcases the company's capabilities and commitments, earning it a high level of trust from its clients. In pursuing a management buyout to secure its succession, TBD aims to maintain continuity while capitalizing on growth opportunities in the evolving energy landscape.

Industry Overview in Germany

The energy transition in Germany is a crucial component of the national agenda, aimed at reducing reliance on fossil fuels and increasing the use of renewable energy sources. This extensive transformation involves the development of new infrastructure to support alternative energy solutions, including wind, solar, and hydroelectric power. As Germany implements ambitious climate goals, the demand for specialized construction services in the energy sector has surged, resulting in a strong market for companies focused on critical infrastructure.

With ongoing investments in infrastructure to accommodate renewable energy, companies like TBD are uniquely positioned to benefit from these initiatives. The growing need for reliable and efficient testing and construction services that meet the strict regulations associated with energy transition projects has created significant opportunities for skilled service providers in the market.

The German government continues to support this transition by implementing policies and financial incentives to encourage private and commercial entities to adopt sustainable energy sources. Consequently, there is an increasing emphasis on innovative technologies and infrastructure that facilitates these changes. The industry is projected to experience sustained growth, driven by the demand for alternative energy solutions that align with the country’s commitment to sustainability.

Rationale Behind the Deal

The management buyout of TBD by a fund advised by Deutsche Beteiligungs AG (DBAG) is primarily aimed at ensuring the company's succession while preserving its operational integrity. The founders, Uwe Jahnke and Wilfried Eschen, recognize the importance of having a strategic partner like DBAG, which brings extensive experience in industrial services to foster TBD's growth. Given the favorable market conditions prompted by the energy transition, the partnership is expected to position TBD for future advancements.

By leveraging DBAG's resources and network, TBD aims to enhance its competence profile and diversify its client portfolio. The anticipated collaboration will strengthen the company's ability to navigate the evolving landscape of the energy sector, thereby capitalizing on growth opportunities arising from increased infrastructure investments.

Investor Information

Deutsche Beteiligungs AG (DBAG) is a well-established investment firm specializing in mid-sized companies, with a focus on sectors where it can add value through operational improvements and strategic growth initiatives. DBAG possesses significant expertise in industrial services, making it a suitable partner for TBD as it embarks on its next phase of growth. The firm’s strategic approach is designed to identify promising investment opportunities across various industries, particularly those that align with current market trends.

DBAG’s involvement with TBD signals a commitment to actively engage in the company's development, bringing in its extensive experience and industry knowledge. This partnership is anticipated to facilitate new opportunities and operational efficiencies that will benefit both TBD and its clients, enhancing long-term value creation.

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The management buyout of TBD by DBAG presents a favorable investment opportunity, particularly considering the significant growth potential associated with the energy transition in Germany. The company's established reputation and operational expertise position it well to capitalize on increasing demand for critical infrastructure services. With DBAG at the helm, TBD is likely to gain access to valuable insights and resources that can further accelerate its growth trajectory.

Moreover, the strategic alignment between TBD and DBAG is promising, as their combined capabilities will enhance the company's service offerings, allowing it to confidently navigate the challenges of evolving energy demands. DBAG's commitment to supporting TBD's growth and diversification will undoubtedly bolster the company's long-term competitiveness.

In conclusion, this management buyout is poised to be a beneficial move for both parties involved. TBD stands to enhance its operational capabilities while DBAG can leverage its investment to foster an essential service provider in the critical infrastructure space. The collaboration is expected to yield positive outcomes, enhancing both the operational success of TBD and the overall value of DBAG's investment.

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