DPE invests in leading construction restoration specialist Massenberg
- Specialist provider of high-quality renovation of civil engineering structures (concrete repair and corrosion protection)
- DPE provides growth capital to actively consolidate the construction restoration market
- Goal: significantly expand market leadership through organic growth and acquisition of competitors
- Co-Shareholder and Managing Director Heiner Stahl will continue to lead the business
Munich, 29. April 2019. DPE Deutsche Private Equity (DPE) acquires Massenberg GmbH from seven former shareholders. Headquartered in Essen, Massenberg specializes in the complex renovation of civil engineering structures – focused in particular on concrete repair and corrosion protection, including cathodic corrosion protection. Founded in 1906, Massenberg is a traditional, well-established company and the largest independent specialist in Germany. With more than EUR 50 million total output and over 300 highly qualified employees operating at eight locations, Massenberg has ambitious plans for future expansion. Managing Director Heiner Stahl will continue to lead the company as a co-shareholder to implement the growth and consolidation strategy in cooperation with DPE. The transaction is still subject to approval by the relevant antitrust authorities. The parties have agreed to keep the transaction details confidential.
Role model DPE portfolio company Elevion: revenue growth from EUR 60 million to EUR 330 million
Under the leadership of Managing Director Heiner Stahl, Massenberg has more than doubled its total output since 2010. The future strategy goes one step further: with the support of DPE, Massenberg plans to actively shape the industry consolidation and acquire additional specialists and regionally-focused concrete repair companies. This way, DPE aims to significantly expand and strengthen Massenberg’s market leadership in Germany in the long term. The growth strategy is based on previous achievements of DPE, for example in construction-related industries: with DPE’s support, Elevion (multi-technical services provider to commercial and industrial buildings), has grown its output from EUR 60 million to EUR 330 million within six years. With Calvias (HVAC focussed technical services provider) and Erdo (roofing, cladding and lightning protection), DPE currently supports further growth platforms in its investment portfolio.
Demanding projects, exemplary quality management
Specialized in concrete repair and corrosion protection, Massenberg operates within a sustainable and growing market with a volume of c. EUR 3 billion. Massenberg has earned itself an excellent reputation, especially in the segments of car parks, underground garages, high-rise buildings as well as particularly complex, technically challenging projects. “Massenberg has impressive project references throughout Germany and, thanks to its exemplary quality management, an exceptionally satisfied and attractive customer base, a large part of which characterised by long-term framework agreements,” says DPE Investment Director Mark Suderow. “DPE intends to support management in further expanding the business, both in its current core markets and beyond. We are honoured to accompany management on this exciting journey.”
Significantly growing investments in construction restoration expectedHeiner Stahl emphasizes “our goal is clear: we want to continue the entrepreneurial success of recent years and significantly expand our market leadership. With DPE, we have found the ideal partner to execute on this growth strategy, as DPE has distinguished itself during the last few months by their industry understanding and entrepreneurial thinking. It was particularly important to me that DPE, as a mid-cap growth investor, attaches distinct importance to our employees.” The business outlook for Massenberg is favourable as more than 50 percent of the civil engineering structures made of concrete and steel from 1960 to 1990 are in need of renovation due to the low concrete cover in those buildings. The buildings include private constructions such as multi-storey car parks, industrial plants and concrete facades as well as public buildings such as bridges, canals and schools. In order to preserve the current fabric, the government will have to significantly increase public spending in the future. As Heiner Stahl outlines “with DPE by our side, we can now even better seize all these opportunities and accelerate our growth. We are very much looking forward to the cooperation”. Massenberg welcomes companies that want to be part of the growth strategyMark Suderow further points out that Massenberg is well positioned to drive consolidation in a growing market: “We have been observing the market for several years. Massenberg is ideally suited to our strategy of leveraging the potential of well-managed companies by creating a growth platform within an attractive industry. The construction restoration market is still very fragmented in light of the overall industry turnover. We want Massenberg to change that – through acquisitions, succession solutions, investment options or partnerships. We are welcoming companies in the industry who want to be part of this growth story and have already had some promising discussions.”
About Massenberg GmbH:
Founded in Essen in 1906, Massenberg is a traditional, long-established company with over 300 highly qualified employees operating at eight locations in Germany. The company is one of the leading independent specialists for construction restoration in German-speaking countries. The range of services extends from concrete repair to corrosion protection (including cathodic corrosion protection) as well as industrial painting work. Massenberg is the market leader in the construction restoration of multi-storey car parks and underground garages, high-rise buildings and technically demanding projects and boasts an extensive list of references of successful projects and well-known blue-chip industrial customers.
For further information, please visit www.massenberg.de.