November 9, 2016
HQ Equita sells SCHOCK to IK Investment Partners
HQ Equita has just signed an agreement for the sale of Granite Holding GmbH (“SCHOCK”), the world’s leading provider of top-quality quartz-composite kitchen sinks, to the IK VIII Fund, managed by IK Investment Partners (“IK”). The parties mutually agreed not to disclose any details of the transaction.
SCHOCK is the inventor and world market leader of quartz composite kitchen sinks and has been the technology and quality leader in this field across the globe for over 30 years. Over half of all quartz composite kitchen sinks manufactured worldwide are based on the production method developed by SCHOCK.
As a trendsetter and inventor of quartz composite kitchen sinks, SCHOCK has acquired a reputation for exceptional and top-quality products. Established in 1924, the enterprise which, in addition to its private label business, also is on the market as an original equipment manufacturer (OEM) and innovation driver in the quartz composite segment, has managed to acquire leading kitchen and furniture industry enterprises as customers in recent years. Meanwhile customers in over 70 countries have learnt to appreciate the products from SCHOCK.
IK VIII Fund acquires the business from HQ Equita.
HQ Equita took over SCHOCK from Capital Management Partners (CMP) in December 2010. The internationalization strategy adopted by management at that time has since been successfully implemented. Since the acquisition by HQ Equita, the business has continuously developed over the years. In the process, SCHOCK has consistently extended its market position. Accordingly, the group’s sales and earnings have more than doubled in the past six years. Measures implemented jointly between SCHOCK and HQ Equita include the internationalization of the customer base, e.g. by founding a subsidiary in the U.S., the introduction of new materials as well as the diversification of the business outside the kitchen segment with a successful debut in the bathroom market. Moreover, HQ Equita supported the upgrade and extension of the production site located in the Bavarian Forest with substantial investments in expansion, modernization and automation. In 2016 alone, over 100 new employees have been recruited so far at that location.
“This participation once again underscores the industrial approach adopted by HQ Equita,” said Dr. Michael Hönig, Senior Partner and Managing Director of HQ Equita, on signing the contract. “We invest in niche providers with market leadership that operate on a global scale, and we support international growth, product development and operational value gains.” Florian Wiemken, Senior Investment Manager at HQ Equita, added: “We’re convinced that in IK, SCHOCK has an ideal partner at its side to continue its successful development in the future.”
“IK has a strong track record within the sector, with investments such as Hansa Group, Nobia, TCM Group, and we are proud to have the opportunity to support the company and its talented management team going forward. Together, we believe there are significant opportunities to grow the business organically and through acquisitions while continuing to put the customers first,” said Detlef Dinsel, Partner at IK and advisor to the IK VIII Fund.
“The exceptional success in recent years would not have been possible without HQ Equita. For this reason, we wish to explicitly express our thanks for their close and simultaneously challenging and encouraging assistance and collaboration, in a spirit of mutual trust and confidence,” said Ralf Boberg, CEO at SCHOCK. “Under HQ Equita, SCHOCK succeeded in expanding to reach a new scale, including a new stage of its corporate development. We’re delighted to have found a new owner in IK who would like to continue supporting the further internationalization and extension of our production capacities,” said Sven-Michael Funck, CSO at SCHOCK.
The closing of this transaction is subject to the approval of the cartel authorities.
HQ Equita was assisted by the following consultants in the course of this transaction: William Blair (M&A), Alvarez & Marsal (FDD), KPMG (CDD), Watson, Farley & Williams (Legal, Tax, SPA), ERM (Environmental), Mesterheide (Insurance)
IK was assisted by the following consultants: Alantra (M&A), EY (Financial, Tax), goetzpartners (Commercial), Latham & Watkins (Legal), Golder (Environmental) and Marsh (Insurance)
Should you have any queries, the following contacts will be pleased to assist you:
Unternehmensberatung für Kommunikation GmbH
+49 151 16 30 89 49
+49 160 53 60 965
GOOS COMMUNICATION GmbH & Co.KG
Ms Yvonne Deters
Geibelstrasse 46a, 22303 Hamburg, Germany
Phone: +49 (0) 40 284 17 87-20
IK Investment Partners
Detlef Dinsel, Partner
Phone: +49 40 369 88 50
Mikaela Hedborg, Communications & ESG Manager
Phone: +44 77 87 573 566
SCHOCK is the inventor of the granite kitchen sink and has been the worldwide technology and quality leader in this field for over 30 years. The patented combination of quartz with top-quality acrylic forms a premium compound product that is three times as hard as natural granite and is also superior in terms of many product characteristics to kitchen sinks made from other materials (e.g. stainless steel, ceramics). The SCHOCK range of products comprises sinks for almost any conceivable kitchen style and taste. Customers in over 70 countries rely on SCHOCK products manufactured exclusively at the company’s headquarters in the Bavarian Forest. Further information is available at www.schock.de
About HQ Equita
HQ Equita is the mid-cap buyout firm of HQ Capital. HQ Capital combines investment expertise in private equity and real estate as well as direct investments in German companies under a single brand and has currently more than US$11 billion assets under management. HQ Equita continues the Harald Quandt family’s tradition of acquiring entrepreneurial equity interests in SMEs. HQ Equita is considered an experienced provider in the German-speaking direct investment market. Since its inception in 1992, the company has obtained a total of 830 million euros in capital commitments and has taken stakes in over 30 enterprises over time. HQ Equita’s clients comprise institutional investors, family offices, foundations & trusts as well as renowned entrepreneurial families – including the Harald Quandt family. Further information is available at www.hqequita.com
About IK Investment Partners
IK Investment Partners (“IK”) is a Pan-European private equity firm focused on investments in the Nordics, DACH region, France and Benelux. Since 1989, IK funds have raised more than €7.5 billion of capital and invested in over 100 European companies. IK funds support businesses with strong underlying potential, partnering with management teams to create robust, international leaders with excellent long-term prospects. For more information, please visit www.ikinvest.com