Press Release: LEO II Fund intends acquisition of Schaeffler´s global chain drive business
- LEO II Fund, exclusively advised by DUBAG Group, commits to taking over nine sites with 560 employees
- The transaction underlines the expertise of DUBAG and LEO II in successfully handling complex carve-outs from listed companies
- Current Schaeffler management team of the business division will join the new company
- Modern and environmentally friendly hybrid drives will play an important role in individual mobility as well as in the achievement of ambitious climate goals
MUNICH | 11.08.2021 | The Munich based investment fund Lenbach Equity Opportunities II. GmbH & Co. KG (LEO II Fund), which is being advised exclusively by DUBAG Group, has signed a contract to acquire the global chain drive business from the world-wide active automotive and industrial supplier Schaeffler.
The aim of the transaction is to further expand its market position as the world’s leading system supplier and partner for OEMs for high-quality drive chains in international competition. With its many years of management experience, the DUBAG Group will provide long-term advisory support to the chain business as a permanent partner.
The transaction is expected to close in the first half of 2022 and is subject to all regulatory approvals being granted. As regards to the business of the French business of Schaeffler Chain Drive Systems SAS, the decision to sell can only be made after completion of the legally required consultations with the works council. The parties have agreed not to disclose the financial details of the transaction.
About Schaeffler´s chain drive business
Chain drives systems are installed as part of the drive system in the internal combustion engines of passenger cars and other vehicles such as motorcycles as well as modern and environmentally friendly hybrid drives.
In addition to drive chains, the systems include tensioning systems, sprockets, guide rails and other components. Being an integral part of a drivetrain, the chain drive systems ensure smooth running and reduced fuel consumption along the entire life cycle of a vehicle.
Commercial activities in chain drive systems have been expanding within the Schaeffler Group since 1986 and today, with around 560 employees, the business ranks among the leading global suppliers.
Research and development as well as production take place at nine different locations in Europe, Asia and North and South America. In recent years, Schaeffler has strengthened its business through targeted efficiency improvements, for example by optimizing the global footprint of its plants and through investments. At Schaeffler, chain drive systems were produced for the automotive original equipment business (Automotive Technologies) and for the spare parts business (Automotive Aftermarket).
Statements concerning the transaction
DUBAG Group is proud to have been chosen in a highly competitive process by Schaeffler Technologies AG & Co. KG as trustworthy partner for the intended carve-out of its chain drive business.
“We are delighted to welcome the employees and to support the management, led by Dr. Markus Ottmüller and his team, on its future path to becoming a leading independent partner for OEMs in the development and production of best-in-class chain solutions. In particular, the outstanding R&D knowledge, the production footprint in close proximity to its customers and the highly trained and motivated workforce of approx. 560 employees, have convinced us to partner with Schaeffler Technologies AG & Co. KG and to invest into the chain drive business.” says Dr. Michael Schumann, founder and partner of DUBAG Group.
Matthias Zink, CEO of the Automotive Technologies division, said: “The chain drive systems business finds an ideal and customer-oriented partner in the DUBAG Group and its private equity fund. The business can be managed and further developed more purposefully and convincingly by the new owner than by the Schaeffler Group, where it is no longer the focus. At the same time, we will continue to drive forward the transformation towards e-mobility with this step.”
About Schaeffler Group
As a leading global supplier to the automotive and industrial sectors, the Schaeffler Group has been driving forward groundbreaking inventions and developments in the fields of motion and mobility for over 70 years. With innovative technologies, products, and services for CO?-efficient drives, electric mobility, Industry 4.0, digitalization, and renewable energies, the company is a reliable partner for making motion and mobility more efficient, intelligent, and sustainable. The technology company manufactures high-precision components and systems for drivetrain and chassis applications as well as rolling and plain bearing solutions for a large number of industrial applications. With around 83,900 employees and an approximate sales volume of EUR 12.6 bn (Year 2020), Schaeffler is one of the world’s largest family companies.
About DUBAG Group and Lenbach Equity Opportunities
DUBAG Group is a Munich based private equity advisory firm, exclusively advising two institutional investment funds, namely Lenbach Equity Opportunities I. SCSp and Lenbach Equity Opportunities II. GmbH & Co. KG.
The most recent fund LEO II was established in late 2019 and has received commitments from institutional investors across Europe and the US. The sweet spot of LEO II is the acquisition of companies in special situations, such as carve-outs from large conglomerates, focusing mainly, but not solely, on European investments within the production and engineering domain.
In their position as fund management advisor, DUBAG Group manages the acquisition and strategic realignment of companies with significant potential for value creation and long-term development across various industries. DUBAG Group supports the management of the portfolio companies with a hands-on team of operational specialists and the experience of more than 20 years in repositioning of carve-out entities.
Dr. Michael Schumann
Partner and Founder
Tel.: +49 89 45 209 45 0