Deutsche Beteiligungs AG: Disposal of investment in BTV Multimedia

• Buy-and-build strategy successfully implemented through five add-ons
• First disposal from the DBAG ECF III portfolio
• Sales proceeds from the transaction in line with the investment’s fair value carried as at 31 December 2022

Frankfurt/Main, 8 February 2023. Deutsche Beteiligungs AG (DBAG) has very successfully concluded its investment in BTV Multimedia, a provider of equipment and services for broadband telecommunications. DBAG’s stake in the company will be sold to ETC Group, a strategic buyer headquartered in France. The shares held by DBAG ECF III (advised by DBAG) will also be sold. Corresponding agreements were signed yesterday; completion is subject to approval by the authorities. The transaction is expected to be closed within the next four months. Through its investment in BTV Multimedia, DBAG ECF III had successfully structured a smooth succession arrangement for the family-owned business. Overall, the investment in BTV Multimedia totalled 25.5 million euros, of which DBAG contributed 10.5 million.

The disposal proceeds are roughly in line with the valuation of the investment in DBAG's preliminary consolidated statement of financial position as at 31 December 2022. Given that the disposal constitutes an adjusting event after the reporting period, this affects DBAG's net income for the first quarter of the current financial year. There will therefore be no further material value contribution from the transaction in the current quarter.

First disposal from the DBAG ECF III portfolio

With the sale of the investment in BTV Multimedia, DBAG ECF III has achieved the first disposal of a management buyout (MBO) from its portfolio. Since 2018 the fund had built up a portfolio comprising three companies.

Disposal highlights the successful execution of DBAG’s investment strategy in the broadband telecommunications segment

By expanding its investment strategy to sectors outside of the manufacturing industry, DBAG has been able to take advantage of new market opportunities while reducing risks from economic and structural changes for the overall portfolio. Specifically, broadband telecommunications investments benefit from the trend towards nationwide coverage with high-performance gigabyte networks.

One of the leading providers of components for the construction of cable and fibre-optic networks

BTV Multimedia is a group of trading and service companies that develop and distribute components for the construction of cable and fibre-optic networks. The group is one of the leading providers: BTV Multimedia offers an extensive range of the products required to build, upgrade and operate such infrastructure. Besides pure component distribution, the company is also active in the development of its own product series, as well as offering a range of related services to its customers, including network planning, installation or in-house fibre optic installation. Throughout the holding period of DBAG ECF III,
BTV Multimedia has significantly expanded its range of products and services for the expansion of fibre optics networks, thereby gaining traction in a fast-growing market environment. BTV Multimedia successfully implemented the value appreciation strategy through five add-ons, swiftly expanding its market presence.

“We managed to devise a smooth succession arrangement for a family-owned business,” said Torsten Grede, Spokesman of the Board of Management Deutsche Beteiligungs AG. He added: “The capital provided by DBAG ECF III allowed BTV Multimedia to significantly strengthen its market position. In this way, our shareholders and the fund investors benefit from our long-term value appreciation strategy.”

“DBAG have been supporting us in a true spirit of partnership,” said Joe Doering, CEO of BTV Multimedia, adding: “We succeeded in broadening the product range and geographical market coverage through add-ons, thus significantly accelerating BTV Multimedia’s growth.”

Deutsche Beteiligungs AG (“DBAG”) has been listed since 1985 and is one of the most renowned private equity firms in Germany. As an investor and fund advisor, DBAG traditionally focuses on mid-market companies in Germany, Austria and Switzerland (the DACH region), and especially on well-positioned companies offering growth potential. DBAG’s sector focus is on manufacturers, industrial service providers and IndustryTech enterprises – businesses whose products facilitate automation, robotics and digitalisation – as well as on companies from the broadband telecommunications, IT services, software and healthcare sectors.  With its Milan office, DBAG has also maintained a presence in Italy since 2020. DBAG Group’s assets under management or advisory amount to approximately 2.5 billion euros.

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