DPE sells J.H. Ziegler GmbH to Japan’s Teijin Frontier Co., Ltd.

Jul 30, 2018

  • Sales have increased under DPE management from € 44 million (2013) to € 75 million (2018e)
  • Number of employees has grown by more than 50 % to over 400
  • The company has successfully developed into a global market leader
  • Significant investments promise further growth

Munich, July 30, 2018. DPE Deutsche Private Equity (DPE) has reached an agreement with Teijin Frontier Co., Ltd. on the sale of J.H. Ziegler GmbH. With over 400 employees, the company is today one of the leading manufacturers of multi-layer products for applications in automobile seating and acoustic insulation for vehicle interiors.

Takeover gives Teijin Frontier a strong entry into the German market

Teijin Frontier Co., Ltd. is a wholly owned subsidiary of Teijin Ltd., a Japanese chemical and pharmaceutical group with around 20,000 employees and annual sales of more than € 6 billion. The company is listed on the Japanese stock market (WKN: 855254/ISIN: JP3544000007).  Its subsidiary Teijin Frontier Co., Ltd. specializes in the manufacture of clothing and industrial textiles, so that the takeover of Ziegler represents an attractive expansion of its portfolio, whilst simultaneously enabling entry into the European market.

DPE and Ziegler – a growth story

In 2014, DPE acquired a majority shareholding in Ziegler with the intention to achieve significant growth through extensive investments in production technology designed to expand specific capacities and streamline the product portfolio. “We are pleased that we – together with the management team of Diedrich von Behr – could demonstrate Ziegler’s full potential,” commented DPE partner Dr. Frank Müller. Furthermore, Ziegler has, under DPE’s direction, established sales offices in the US and China. From this basis of growth, Ziegler acquired additional high-profile customers in the US and Asia, and created new vehicle platforms in Europe. Sales have increased under DPE management from € 44 million (2013) to over € 75 million (2018e). The number of employees increased in parallel by almost 50 % to more than 400.

Successful “buy & build” strategy

During DPE’s ownership, Ziegler has developed from a manufacturer of technical nonwovens materials for a wide variety of applications into a leading producer of complex multi-layer products for the automotive industry. The clear strategic focus on automotive seating and interior acoustic insulation applications has paid off. In the coming years, sales are expected to increase to significantly more than € 100 million: The investment of over € 25 million and the commencement of operations of a high-tech production facility at the Achern plant in Q3 2018 will enable further growth.

Ziegler has become one of the leaders in its industry

 “The development of our company over the past four years has been remarkable. We have been able to preserve our innovative corporate culture of team spirit, flat hierarchies and short decision-making paths. With DPE we had a partner at our side who understood us from the very beginning and provided outstanding entrepreneurial support. Following targeted investments and our expansion strategy, we can now look ahead with confidence,” said Managing Director Diedrich von Behr. DPE partner Dr. Frank Müller added, “Thanks to the outstanding performance of the entire Ziegler team, further enormous growth opportunities still exist. I am delighted that we have found a perfect partner for the company in Teijin Frontier!“

Further growth possible especially in Asia

Through the acquisition, Ziegler will benefit from Teijin Frontier’s high level of competence in textiles. In addition, the acquisition will also improve Ziegler’s positioning in the Asian market in particular. “We are certain that we will be able to further expand our service portfolio and continue to jointly pursue our clear path to growth as part of the Teijin Group,” said Diedrich von Behr.

The transaction is expected to be completed by the end of the summer of 2018, subject to approval by the anti-trust authorities.