Information on the Target

Veco, founded in 1934 and headquartered in Eerbeek, The Netherlands, is a prominent manufacturer of high-precision metal components. The company employs approximately 350 full-time staff and has built a robust reputation by serving over 1,500 customers across approximately 85 countries. Its operations extend across several locations, including the Netherlands, the United Kingdom, Germany, and India, allowing Veco to cater to a diverse range of industries and applications.

Veco has been a subsidiary of SPGPrints Group B.V., a leading global provider of integrated solutions for rotary screen and digital printing in textiles and industrial sectors, since its acquisition by Investcorp in July 2014. Under Investcorp's guidance, Veco has focused on enhancing its operational capability and innovation to solidify its standing as a standalone entity.

Industry Overview in the Netherlands

The manufacturing sector in the Netherlands plays a crucial role in the country's economy, contributing significantly to both national output and employment. The sector's continuous investment in innovation and technology positions it at the forefront of European manufacturing. Companies like Veco exemplify this trend, showcasing advanced production techniques and a commitment to high-quality standards.

Moreover, the Dutch manufacturing industry benefits from a strategically located geographic position, well-established trade routes, and a sophisticated logistics infrastructure. This enables companies to efficiently serve international markets, an advantage that Veco leverages as it exports to a vast array of countries worldwide.

In recent years, there has been a growing emphasis on sustainability in the manufacturing industry, leading firms to adopt greener practices and innovate towards more environmentally friendly production processes. This shift not only complies with global sustainability goals but also meets the increasing demand from consumers and businesses for responsible manufacturing practices.

Additionally, technological advances, such as automation and digitalization, are driving competitiveness within the industry. The adoption of such technologies allows companies to enhance productivity, optimize resource allocation, and respond quickly to changing market demands, all of which are imperative for growth and sustainability in this rapidly evolving sector.

The Rationale Behind the Deal

The decision to carve out Veco from SPGPrints Group B.V. and sell it as a standalone entity is underpinned by the need to capitalize on the company's growth potential. Throughout its tenure under Investcorp, Veco has shown promising development through organic growth and strategic acquisitions, enabling it to establish a stronger market presence.

With a focus on key applications and new client acquisition, the sale is intended to foster further independence and innovation. The restructuring is strategically positioned to unlock future growth opportunities for Veco in an increasingly competitive marketplace.

Information About the Investor

Investcorp is a prominent global investment manager with a focus on delivering superior returns through strategic capital investments. With a diverse portfolio spanning various sectors, the firm has a strong track record in supporting companies' expansion and innovation. Investcorp's operational support and financial expertise have helped many firms, including Veco, enhance their market positions and scale efficiently.

Founded in 1982, Investcorp has transformed over the years into a significant player in the private equity sector, employing a rigorous selection process for investments. This allows them to identify and nurture innovative firms with growth potential, much like Veco, which aligns with their strategic vision of fostering successful, independent businesses.

View of Dealert

The divestment of Veco from SPGPrints Group B.V. and its establishment as an independent entity could prove to be a strategic move with promising returns for both Investcorp and the company. Given Veco's robust market presence, history of innovation, and strong management under CEO Joost Smits, the groundwork for continued growth is solid.

By focusing on growth potential, particularly in key applications and leveraging successful add-on acquisitions, Veco is well-positioned to navigate the challenges of the manufacturing sector. The managerial team's commitment to an ambitious growth strategy enhances confidence in the company's future prospects.

Investcorp's experience in facilitating such transformations contributes positively to the outlook for Veco, as their partnership could produce beneficial synergies in technological investments and market expansion. This collaboration may further strengthen Veco's capabilities and accelerate its growth trajectory.

Overall, this deal exemplifies the potential for innovation-driven companies to thrive within the Dutch manufacturing landscape. If managed effectively, the independence gained through this transaction offers Veco the opportunity to capitalize on new market trends and establish a more dynamic operational framework for future success.

View Original Article