About the deal

Capitalmind Investec has advised KAP AG in the divestment of its precision components segment to the current management through a Management Buy-Out (MBO).

The precision components segment was one of four segments within KAP AG’s portfolio. Specializing in the development and production of high-precision plastic and plastic-metal composite components for various industries.

The divested entities include three production sites: Präzisionsteile Dresden GmbH & Co. KG and Gear Motion GmbH in Germany, as well as BEBUSCH Hungaria Müanyagfeldolgozó Kft. in Hungary, alongside associated management and real estate companies. The MBO structure ensures a smooth transition and continuity for customers, while also providing the business with enhanced strategic focus and operational independence. This transaction aligns with KAP AG’s strategy to streamline its portfolio and concentrate on segments for long-term value creation.

About KAP AG

KAP AG, headquartered in Fulda, Germany, is a listed industrial holding company in the upper midmarket and focuses on four different segments: engineered products, flexible films, surface technologies and precision components (sold in this transaction). The company operates in 11 countries with more than 1,800 employees. The Carlyle Group is KAP AG’s largest shareholder, holding a 45.5% stake.

About the precision components segment

The precision components segment specializes in the development and production of high-precision plastic and plastic-metal composite components.

It primarily serves the automotive industry, with a focus on drive technology for comfort and assistance systems. Additionally, the segment supports the e-bike, energy, and med-tech sectors.

The product range includes gears, shafts, housings, and spindles, designed to meet the highest standards of precision and performance. It operates from three advanced production facilities in Germany and Hungary.

What we did

Capitalmind Investec acted as the exclusive M&A advisor to KAP AG on the sale of its precision components segment, providing comprehensive support throughout the process. The preparation of the market approach included assistance with the business carve-out, the definition of the transaction strategy, the preparation of marketing materials, and the validation of the business plan. The market approach targeted both domestic and international investors through a broad auction process, generating a positive market response in a difficult market environment. Additionally, Capitalmind Investec coordinated a multi-track due diligence process, advised on the transaction structure, and negotiated key terms of the Purchase Agreement, ensuring a smooth and successful transaction.

In a challenging market environment, Capitalmind Investec used its negotiating skills, industry expertise and in-depth process know-how to achieve a high level of market resonance and facilitate the successful completion of the transaction.

The collaboration was extremely cooperative and professional, characterised by entrepreneurial commitment, quick responsiveness and a pragmatic, solution-oriented approach.

Marten Julius
CEO, KAP AG