Target Company Information

DESMI, headquartered in Nørresundby, Denmark, has a rich history dating back to 1834 and is renowned for the manufacture of pumps and pumping systems, as well as environmental cleaning equipment and related services. The company serves a diverse range of end-markets, including marine and offshore, industrial, utilities, defense, and fuel sectors. Additionally, DESMI is known for its commitment to environmental solutions, particularly in oil spill response and maintaining clean waterways.

Operating globally in 20 countries and employing nearly 1,000 personnel, DESMI distributes its products in over 150 countries through a well-established network of subsidiaries and distributors across six continents. Their extensive international operations underscore the company's capacity to meet global demand for their innovative pumping solutions.

Industry Overview in Denmark

Denmark boasts a robust industrial sector, characterized by a strong emphasis on innovation and sustainability. The country ranks highly in terms of environmental standards and has pioneered advancements in clean technology, making it a favorable environment for companies like DESMI. The Danish government has implemented policies that encourage green technologies, enhancing the demand for environmentally friendly solutions within various industries.

The marine and offshore segments, where DESMI operates, are particularly significant within Denmark's economy, given the country's historical reliance on maritime activities. The growth opportunities in these sectors are further bolstered by Denmark's strategic location and thriving maritime infrastructure, which facilitate international trade and logistics.

The industrial market continues to evolve, reflecting a shift towards automation and efficiency. With the global push for sustainable practices, companies specializing in innovative solutions can significantly capitalize on the growing demand for advanced technologies in the industrial sector. This trend aligns with DESMI's offerings, providing a strong competitive edge as they navigate the expanding market.

Moreover, the ongoing digital transformation within industries presents an opportunity for DESMI to integrate cutting-edge technologies into its products, enhancing operational efficiencies across its diverse end-markets. The Danish industrial environment, therefore, offers a fertile foundation for DESMI's continued growth and innovation.

Rationale Behind the Deal

The acquisition of DESMI by One Equity Partners (OEP) is driven by a shared vision for the future of the company. OEP's strategic expertise in the industrial sector will facilitate the acceleration of DESMI's growth trajectory, allowing the company to expand its market presence and diversify its operations. This partnership seeks to capitalize on the potential synergies between OEP and DESMI, enhancing the latter's ability to serve emerging market segments and innovate within its product offerings.

As the demand for sustainable and efficient pumping solutions continues to rise globally, this strategic partnership positions DESMI well to reinforce its leadership within the industry. The collaboration is expected to not only drive growth but also strengthen the company's commitment to environmental responsibility, ensuring DESMI remains at the forefront of industry advancements.

Information About the Investor

One Equity Partners (OEP) is a middle-market private equity firm that boasts a strong focus on the industrial, healthcare, and technology sectors in both North America and Europe. Since its inception in 2001, OEP has established itself as a prominent player in the private equity landscape, having completed over 300 transactions worldwide. The firm aims to create market-leading companies by implementing transformative business combinations, underscoring its commitment to long-term value generation for its partners.

OEP's expansive experience and extensive senior team place it in a strategic position to guide DESMI through its next growth phase. With offices located in key financial hubs such as New York, Chicago, Frankfurt, and Amsterdam, OEP's global reach and profound industrial sector expertise will enhance DESMI’s operational capabilities and market opportunities.

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The acquisition of DESMI by One Equity Partners is perceived as a highly strategic investment that could yield substantial benefits for both parties involved. OEP's focus on leveraging its deep industry knowledge and resources positions DESMI for accelerated growth and market expansion. Given the increasing global demand for sustainable solutions, DESMI is well-poised to capitalize on emerging opportunities within its core sectors.

Furthermore, OEP’s commitment to supporting DESMI's vision reinforces the company’s strategy of diversifying its end-markets. By investing in a partner that shares their long-term growth ambitions, DESMI can enhance its operational efficiencies and innovate its product offerings, ensuring alignment with future market demands.

However, the success of this investment will hinge on effective collaboration between DESMI's management and OEP's investment team to implement a coherent growth strategy. As both entities combine their strengths, it is likely that DESMI will emerge as an even more competitive player in the global market, fostering impactful growth and sustainability.

In conclusion, the alignment between DESMI’s operational goals and OEP’s investment strategy presents a promising outlook for the partnership, warranting strong optimism about the future success of this transaction and potential returns for investors.

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