About ATOZ

ATOZ Facility Solutions GmbH is a well-established entity in the technical and infrastructural facility management sector. The company provides a diverse range of services, including cleaning, janitorial solutions, green space maintenance, and management of maintenance tasks along with minor repairs.

Initially part of the Interzero Group, ATOZ was carved out in 2022 and has since been operating as an independent entity under the guidance of the LEO II. Fund. The DUBAG team has played a significant role in fostering the company’s ongoing growth and operational success.

Industry Overview in Germany

The facility management industry in Germany is experiencing robust growth, driven by increasing demand for integrated services that enhance operational efficiency in both residential and commercial sectors. As companies and municipalities strive to optimize their property management, the necessity for reliable facility management providers has never been greater.

Germany's focus on sustainability is also influencing the facility management landscape. With new regulations and a societal push towards eco-friendly practices, service providers are adapting by offering green solutions that not only comply with new laws but also meet public expectations.

Moreover, the urbanization trend continues to drive the market, as cities expand and the need for efficient housing and commercial facilities rises. This surge creates an ideal environment for companies like ATOZ, which cater to both residential and commercial property needs.

As one of the largest landlords in Germany, municipal housing companies, especially in urban centers like Berlin, play a crucial role in the facility management sector. They are increasingly seeking partnerships with specialized service providers to enhance their portfolio and improve tenant satisfaction.

The Rationale Behind the Deal

The decision to sell ATOZ to HOWOGE stems from a strategic alignment of interests. According to Christoph Mödder, Partner at DUBAG and Managing Director of the LEO II. Fund, the acquisition is expected to fit seamlessly into HOWOGE's broader strategic objectives. This acquisition not only elevates ATOZ’s status in the market but also leverages HOWOGE's extensive infrastructure and expertise, promising sustained growth for the company.

By integrating ATOZ within its operations, HOWOGE expects to enhance its service offering, providing tenants with improved facility management, which is crucial in maintaining high occupancy rates and tenant satisfaction.

About LEO II

Launched in 2019, the LEO II. Fund specializes in acquiring and repositioning companies facing special circumstances. With commitments from institutional investors, the fund's strategy typically focuses on acquiring units from listed companies. Its recent ownership of ATOZ exemplifies this approach, as the fund sought to optimize the company’s operational trajectory following its carve-out.

The expertise of DUBAG in guiding such transitions has proven instrumental to the success of the LEO II. Fund and its portfolio companies. By providing strategic oversight, they have helped ensure that entities like ATOZ are well-prepared for future developments.

About HOWOGE

HOWOGE Wohnungsbaugesellschaft mbH is a prominent municipal housing company in Berlin, managing approximately 76,400 residential units as of December 31, 2023. With ambitions to expand its portfolio to around 100,000 flats in the coming years, particularly through new developments, HOWOGE stands as one of Germany's key players in the housing sector.

The synergy between HOWOGE's expansion plans and ATOZ's service offerings aims to create a comprehensive framework for enhancing tenant experiences, thereby driving demand for HOWOGE’s properties.

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From an investment perspective, the acquisition of ATOZ by HOWOGE appears to be a strategic move with the potential for significant long-term benefits. The integration of ATOZ aligns well with HOWOGE's goals for enhancing service delivery and expanding its portfolio while ensuring high standards in tenant management.

Furthermore, considering the facility management industry's growth trajectory in Germany, ATOZ is well-positioned to capitalize on new opportunities brought about by urbanization and increased service demand. The addition of their expertise to HOWOGE can enhance resident satisfaction and operational efficiency, reinforcing HOWOGE's market position.

However, the success will depend on effective integration and the ongoing management of ATOZ’s operations under the new ownership. If managed appropriately, this strategic alignment has the potential to create a robust entity capable of navigating the competitive landscape effectively.

Overall, this transaction is promising for both ATOZ and HOWOGE, suggesting that it could be a favorable investment decision given the current market dynamics.

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