12 September 2017

Silverfleet invests in specialist German industrial pump manufacturer, Pumpenfabrik Wangen

Wangen’s client base includes the Royal Navy, Schwarzkopf, Ritter Sport and the Wirtgen Group.

Silverfleet Capital, the Pan-European private equity firm that specialises in buy-to-build, has entered into a binding contract to acquire Pumpenfabrik Wangen GmbH (“Wangen” or the “Company”), a leading designer and manufacturer of high quality progressing cavity and twin-screw pumps. Silverfleet will acquire a majority stake from the Company’s individual private shareholders. Completion is subject to regulatory approval and the terms of the transaction were not disclosed.

Founded in 1969 and based in Wangen, Germany, the company is a market leader in the manufacture of screw pumps that are suitable for highly viscous or abrasive substances as well as solid-fluid composites. Wangen offers a broad range of standard as well as customised pumps designed and manufactured in-house for specific uses.

Wangen has an international distribution network, supplying clients including the Royal Navy (pumps for frigates), Schwarzkopf (hair care products) and the Wirtgen Group (road construction, a division of John Deere). The Company currently manufactures products for four key end markets, namely: (i) biogas; (ii) food & beverage; (iii) agriculture; and (iv) wastewater treatment and employs approximately 200 people. In 2017, Wangen expects to generate revenues of €37 million.

The Company’s focus on product innovation has led to several recent new product launches, including a highly sophisticated twin-screw pump technology that is primarily used in the food sector, as well as other hygienic applications such as cosmetics and pharmaceuticals.

Silverfleet Capital’s investment will enable Wangen to continue to grow internationally, further penetrate the Company’s key end markets with new product portfolios, as well as diversify across industries using Wangen’s leading technologies and product innovation capabilities. As part of the acquisition, Silverfleet Capital has assembled a high quality and experienced management team who will be responsible for executing Wangen’s international growth strategy.

This transaction represents the fifth investment completed by Silverfleet in its current fund. Other recent manufacturing sector investments include Coventya, the French based international speciality chemical business and Sigma Components, a UK based precision engineering components manufacturer for the commercial aerospace sector.

Klaus Maurer, Partner at Silverfleet Capital said: “Wangen is a clear market leader with a strong product base and R&D focus, operating in an attractive market. We are excited by the prospect of working closely with the management team and using our experience in the sector to help grow the Company internationally and enable Wangen to achieve its full potential.”

Bernd Stütz, incoming Chairman of Wangen added: “Wangen has a leading reputation as a designer and manufacturer of state of the art products. Having worked in the pump industry for the majority of my career, I am looking forward to helping lead this high quality business through its new phase of ownership. I am convinced that with Silverfleet Capital’s support and experience of building international market leading manufacturing businesses, we can successfully develop the Company further.”

The Silverfleet Capital team that worked on the transaction included Klaus Maurer, Jennifer Regehr, Benjamin Hubner and Guntram Kieferle, who are based in Silverfleet’s Munich office.

Silverfleet was advised by Deloitte (financial & tax), goetzpartners (commercial), Latham & Watkins (legal, corporate), Shearman & Sterling (legal, banking), GCA Altium (M&A and debt advisory), h&z (operational), and Ramboll Environ (environment). The completion of the transaction is expected to take place after merger clearance in Germany has been obtained.

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