Bain Capital to acquire Bavaria
By IBI Magazine
Private equity firm Bain Capital, supported by subsidiary investment funds, has signed an agreement to acquire 100 per cent of the shares of Bavaria Yachtbau, one of the largest serial yacht producers in the world. Bavaria, which was founded by Winfried Hermann in 1978, builds around 3,500 yachts per year at its yard in Giebelstadt, Germany, with sales of around €271 million during the 2005/2006 fiscal year. The acquisition is expected to go through on July 31, 2007.
"In an intensive selection process, shareholders Elfriede Herrmann and Yachtagentur Josef Meltl Beteiligungs GmbH have decided in favour of the option which, from their point of view, holds the highest future potential," says Bain Capital in a statement. "In addition to a further strengthening of the Giebelstadt location, it is planned to expand the international dealer network and to open up new attractive markets abroad."
IBI believes that at least 15 private equity and industry parties participated in the bidding process to acquire Bavaria and that there was intense competition for this valuable asset which has resulted in a world record investment in a major boatbuilder.
Founded in 1984, Bain Capital is a global equity firm that has invested in more than 230 companies worldwide from a range of different sectors. The company currently holds an investment in Bombardier Recreational Products (BRP), one of the world's largest producers of PWCs, sport boats and outboard motors, and boasts more than €35 billion in assets under management.
Bavaria's general manager Rudolf Müller and sales director Mike Reuer will continue to operate the company, but will be complemented by additional staff over the next few months. Upon completion of the acquisition, company founder Winfried Herrmann will withdraw from active management to become a member of the advisory board.
According to Bain Capital, Yachtagentur Josef Meltl will continue to serve as one of the leading dealers for Bavaria sailing yachts in Germany.
(27 June 2007)
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