December 3 2021
Investor Consortium acquires DETAX
Specialist for medical polymer materials DETAX resolves ownership succession in the course of a management buy-out and continues its successful growth track together with a strong Investor Consortium
- DETAX is a leading global supplier of biocompatible silicones and light-curing 3D resins for medical applications in the dental and audio sector.
- As an innovative specialist in polymer materials, DETAX offers its customers a high-quality and extensively MDR-certified product portfolio and positions itself as a pioneer in the dynamic environment of 3D printing materials.
- The company considers itself as a partner to a broad and loyal customer base, thereby enjoying an excellent reputation thanks to its consistently high product and service quality.
- The Investor Consortium of ECM, PINOVA and Gilde Healthcare Private Equity supports DETAX and the management team in settling the ownership succession through a management buy-out. Together, the partners want to build on and further expand DETAX's successful growth track.
An Investor Consortium consisting of funds managed by ECM Equity Capital Management GmbH ("ECM"), PINOVA Capital GmbH ("PINOVA") and Gilde Healthcare ("Gilde Healthcare Private Equity") (together the "Investor Consortium") has acquired a majority stake in DETAX Group, the leading supplier of polymer materials for medical applications, in the context of a management buy-out. The two long-term managing directors, Mrs. Ursula Juretzki-Mangold and Mr. Ralf König, have invested alongside the Investor Consortium as part of the transaction. After more than 65 years of ownership, the transition from the owner family Regneri to the new owners has been completed. Together with the Investor Consortium, the management team will continue the successful development and will lead DETAX into the next growth phase. The transaction is subject to merger control approvals and financial details are not disclosed.
Specialist for medical materials
DETAX, based in Ettlingen, Germany, was founded in 1953 and today employs approx. 110 people. As a specialist in polymer materials, the group offers its customers a comprehensive product portfolio of dental and otoplastic consumables. The group serves an international, broadly diversified and loyal customer base. End users of the products include dental practices, dental laboratories as well as audiologists and audio laboratories. The group operates in a non-cyclical, highly regulated market environment. Complying with such regulation, DETAX holds all relevant MDR certificates. This makes DETAX one of the first companies in the industry with an extensive MDR-certified product portfolio.
Potential for internationalization, digitization, and innovations in a growing market environment
The company’s attractive end markets are continuously growing, driven by sustainable trends such as socio demographics, digitization and increasing regulatory requirements. Particularly 3D printing materials, an area in which DETAX is a pioneer with an excellent market standing, are experiencing a dynamic development. The Investor Consortium and the management team aim to further promote growth with targeted investments in DETAX’s headquarters in Ettlingen. Due to its long-standing, strong market positioning and high innovative strength, DETAX is in an excellent position to leverage such growth. Particularly strong growth potential stems from further internationalization, new customer acquisitions as well as active market consolidation. The Investor Consortium will contribute with its extensive and complementary experience in accompanying growth and internationalization as well as executing buy-and-build strategies.
Following the transaction, Peter Regneri, long-time shareholder and managing director, emphasizes the importance of handing over DETAX to an experienced consortium of mid-market investors with an international positioning, that is equipped to secure and continue the successful development of the company.
Ursula Juretzki-Mangold and Ralf König, managing directors and future shareholders say: "We are proud of what the entire DETAX team has achieved in recent years. Together, we were able to accomplish dynamic growth, particularly through internationalization and new product innovations. With the Investor Consortium, we have found strong partners who support us with many years of experience and international know-how in the healthcare and medical technology markets. Together with our partners, we plan to invest in further product innovations and digitization as well as the further strengthening of our headquarters in Ettlingen."
Tim Krume, Director at ECM, adds: "DETAX is an exceptionally attractive company. We are excited about the highly professional organization, led by a high-calibre, experienced and motivated management team, the strong market positioning as well as the excellent reputation of the group as a leading specialist for medical materials. We are extremely pleased to accompany DETAX’s successful growth trajectory in partnership with the management team."
Herbert Seggewiß, Partner at PINOVA, further adds: "We are impressed by the development of the group and the entrepreneurial performance of the management team. We were particularly impressed by the high-quality and extensively MDR-certified product portfolio, the long-standing loyal partnerships with customers and suppliers, and the high level of innovation with a strong track record. We look forward to a successful collaboration with the management team."
Robert Stein, Partner at Gilde Healthcare Private Equity, notes, "DETAX represents an excellent basis for further organic and inorganic growth. We look forward to adding value in the future with our broad international network as well as our deep industry expertise, especially with respect to buy-and-build."
The Investor Consortium was advised on the transaction by KWM (legal and structuring), CODEX (market), PwC (finance & tax), Shearman & Sterling (financing documentation), GCA Altium (debt advisor) and Willis Towers Watson (insurance). Responsible for the transaction at ECM are Tim Krume, Axel Eichmeyer and Paul Hansen, at PINOVA Herbert Seggewiß, David Gilli and Aylin Akkay and at Gilde Healthcare Private Equity Robert Stein, Tom Klein Robbenhaar and Julian Primer. DETAX was jointly advised on the transaction by CMS, Crowe BPG and Kanzlei Wangler.
About ECM Equity Capital Management GmbH (‘ECM’)
ECM is a trusted growth partner for mid-sized enterprises and entrepreneurs in German-speaking Europe. Since 1995, ECM has raised the private equity funds GEP I-V with aggregate equity commitments of more than €1 billion and currently invests out of the fifth fund GEP V (€325 million). The funds invest primarily in leading mid-market companies with attractive growth potential in the context of ownership successions, partnership transactions and corporate spin-offs.
Further information at: www.ecm-pe.de
About PINOVA Capital GmbH („PINOVA”)
PINOVA Capital is an independent private equity firm investing in high-growth technology companies in German-speaking regions. PINOVA Capital focuses on “Mittelstand” companies with sales between €10 million and €75 million in the sectors industrial technology and information technology, characterized by significant growth potential, sustainable competitive advantages and a strong market position in their niche.
Further information at: www.pinovacapital.com
About Gilde Healthcare
Gilde Healthcare is a specialized healthcare investor with two fund strategies: Venture&Growth and Private Equity. The firm is headquartered in Utrecht (The Netherlands) with local offices in Frankfurt (Germany) and Cambridge (United States). Gilde Healthcare Private Equity participates in profitable lower mid-market healthcare companies based in North-Western Europe. The Private Equity fund targets healthcare providers, suppliers of medical products and service providers in the healthcare market. Gilde Healthcare Venture & Growth invests in medtech, healthtech and therapeutics in Europe and North America.
Further information at: www.gildehealthcare.com
About DETAX Group („DETAX“)
DETAX, headquartered in Ettlingen with around 110 employees, is a specialist for medical materials. For more than 65 years, DETAX has been developing silicones and light-curing resins for medical applications and 3D printing. The company is one of the world's leading specialists in polymer materials with a focus on the dental and audio sectors.
Further information at: www.detax.de