First deal of the day is a company that’s been around since 1731 but is playing a part in one of the sectors of the future. Mutares has agreed to acquire Buderus Edelstahl, a producer of high-quality special steels, that counts the wind energy industry among its customers.
Next we move to a much newer company, where Bridgepoint has invested in a crop input technology provider.
We’ve then got news of an exit by Cube Infrastructure Managers, which is selling a Danish bus network operator to institutional investors advised by JP Morgan Asset Management’s Global Transportation Group.
To wrap up we’ve got figures from placement agent MCAM Group showing some rapid growth in co-investments in UK companies – giving us the opportunity to round up a few of the biggest deals we’ve seen in that area this year.
Steeling up
Mutares has made its 13th acquisition of the year, after agreeing to acquire Buderus Edelstahl from Austrian steel-based technology company Voestalpine.
Buderus Edelstahl was established in 1731 and produces high-quality special steels, focusing on tool steel, engineering steel, open-die forgings, closed-die forgings, hot-rolled strip, cold-rolled strip and rolled semi-finished products, according to a release.
The Wetzlar, Germany-based company sells products to around 250 customers worldwide, in industries like light vehicles, mechanical engineering and wind power. It had around €360 million of revenue in the 2023-24 financial year and has 1,100 employees.
“With the acquisition of Buderus Edelstahl, we are further strengthening our engineering and technology segment in the area of steel components and securing our own steel base,” said Johannes Laumann, CIO of Mutares, in a release. “Buderus Edelstahl will also benefit from our existing product range and broad customer structure in the future, reducing its dependence on individual market risks and positioning itself more broadly for future growth within the Mutares Group.”
Cropping up
From a centuries-old company to a fairly new business. Bridgepoint has invested in Meristem, a crop input technology provider that focuses primarily on biologicals.
Established in 2018 and based in Powell, Ohio, Meristem sources, formulates, licenses and delivers crop inputs to farmers, which it says helps them produce more bushels for less cost per bushel. It employs around 60 people and has over 10 million acres of corn, soybean and other crops.
The company’s technology accelerates farmers’ access to new biologicals, which is lacking in the US market, according to a release. It also works in the multi-billion-dollar US biologicals market for row crops, the fastest-growing agricultural inputs market, the release said.
Bridgepoint’s previous investments in the agricultural technology sector include SunWorld and Rovensa. The firm will support Meristem to expand internationally, drawing on Rovensa’s presence in Latin America and Europe, the release said.
“With its unique focus on biologicals, alternative market channel access and patented technology, Meristem has huge growth potential both in the US and internationally, as farmers recognize the substantial economic benefits of Meristem’s product portfolio,” said Rupprecht Pranckh, partner at Bridgepoint, in a statement.
(Note: Bridgepoint owns PEI Group, the publisher of PE Hub.)
Driving up
Cube Infrastructure Managers has sold Umove, a Danish line bus network operator, to institutional investors advised by JP Morgan Asset Management’s Global Transportation Group.
Founded in 2013 and based in Copenhagen, Umove provides mobility infrastructure services to public transport authorities in Denmark through a portfolio of long-term availability-based contracts. It employs over 2,000 employees and operates a fleet of over 850 buses.
The transaction is Cube’s fourth exit in the public transport sector following Boreal, Hansea and Netinera. This is also the first exit for Cube Infrastructure Fund II.
Cube initially invested in Umove in 2017.
Co-ming up
Co-investments are on the up in the UK and are attracting a wider range of institutional investors, according to private equity placement agent MCAM Group.
The value of private equity co-investments in UK companies rose 360 percent this year, from £3.6 billion ($4.7 billion; €4.3 billion) to £16.8 billion in the year ending September 16. The number of deals has also risen, hitting 12, up from four the year before.
Global institutional investors are becoming more sophisticated at underwriting such deals, which are covering private markets deals from venture to growth to buyouts, said Lars Bjoergerd, managing director of MCAM Advisers, in a release. More institutional investors beyond the typical large pension funds and sovereign wealth funds are also investing.
“For private equity managers dealing with a higher cost of debt, tapping pension funds and other institutions for co-investments can make the dealmaking process considerably easier,” said Bjoergerd in the release. “It means they have to rely less on what is still a relatively expensive debt market to make acquisitions.”
Some of the biggest UK co-investment deals this year include EQT and the Abu Dhabi sovereign wealth fund ADIA taking Dechra Pharmaceuticals private for £4.88 billion; Ardian and the Saudi Public Investment Fund taking a minority stake in Heathrow Airport; and Nordic Capital and the Ontario Teachers’ Pension Plan Board investing in Advanz Pharma.
