Last checked at 
LONDON (Alliance News) - 3i Group PLC, the FTSE 100 private equity firm, on Tuesday said it agreed to invest EUR181 million in Schlemmer, which develops and produces cable protection for automotive and industrial applications, teaming up with management to buy the company from German private equity firm Hannover Finanz and the Mackprang Holding.
Schlemmer, which was founded in 1954 and headquartered in Poing, close to Munich, employs 2,500 people around the world and generated gross sales of EUR220.2 million in 2015, according to 3i, with 50% of sales from its joint venture in China.
3i said that Schlemmer's international growth over the past 20 years is reflected in a "double digit" annual revenue growth rate, and the private equity firm thinks the company's cable management segment is "well-positioned" to benefit from "megatrends in the automotive industry such as connectivity, e-mobility, autonomous driving and safety".
Schlemmer boasts long-standing relationships with European and Northern American as well as Japanese and Chinese Tier 1 Suppliers and Original Equipment Manufacturers, 3i said.
"We are investing in a very successful company with strong relationships with blue chip customers. Schlemmer has high growth potential thanks to the underlying growth drivers and the ability to serve customers globally. We will support Schlemmer's management team to build on the company's strength in Europe and Asia and to further develop its global footprint by strengthening its presence in the US market," Ulf von Haacke, managing director, Germany at 3i, said in a statement.
Josef Minster, chief executive officer of Schlemmer, said: "During the past four years, Schlemmer developed very well under the ownership of Hannover Finanz and the Mackprang Holding. I'm convinced that in future, Schlemmer will greatly benefit from 3i's deep experience and strong track record in the automotive industry, as well as from its international network."
3i, Schlemmer, Hannover Finanz and the Mackprang Holding agreed to keep the purchase price confidential.
Bernd Gottschalk, former management board member of Daimler and former president of the German automotive industry association VDA, will join Schlemmer's board as chairman.
In addition, Gunter Hauptmann, a former management board member of Siemens VDO and member of the advisory board of Norma Group, will join the board as non-executive director.
"Schlemmer enjoys an excellent reputation with OEMs not only in Europe but worldwide as it builds on first-class products as well as strong growth drivers. I'm excited about the opportunity to support Schlemmer on its growth track," Gottschalk said.
Shares in 3i were up 0.6% at 555.50 pence Tuesday morning in London.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
Copyright 2016 Alliance News Limited. All Rights Reserved.
