AXA Private Equity acquires majority shareholding in FLEX Group and secures management succession Paris April 04, 2007

AXA Private Equity has acquired the majority of the shares of the FLEX Group, a German manufacturer of hand-held power tools situated in Steinheim near Stuttgart, from New York based investment advisor GSO Capital Partners. The remaining shares were purchased by the current management team led by Joerg Hempfing and by Dr. Josef Kring who just joined the company and will run the company alongside Mr. Hempfing for a transition period until the end of 2007, before taking over full responsibility from 2008 onwards.

FLEX is engaged in the development and manufacturing of innovative professional-grade power tools, which are used primarily in metal-working, stone-working, masonry and concrete. With its well-known brand, which has become a synonym for angle-grinders, and its high qualitative products, FLEX intends to further strengthen its activities in Europe and wants to capitalize on the growth potential of the North American market. Consequently, the company recently set up a sales entity in the United States in addition to its production facility in Steinheim. FLEX employs a headcount of 230 and achieved a turnover of around € 60m in 2006.

“In AXA Private Equity we have found a strong partner, who secures the management succession and will support our internationally-based growth target through its broad and well-established global network”, said Joerg Hempfing, Managing Director of FLEX Group. In the coming years FLEX intends to grow its sales organically by more than 10% p.a.

“Convinced of FLEX’s well-known brand and its strong market position, I am glad about the opportunity to shape FLEX’s strategy in the coming years”, said Dr. Kring.

Prior to its acquisition in November 2005 by GSO Capital Partners, FLEX was part of the Black & Decker Group.

Transaction participants

Buy-side :

• AXA Private Equity : Dr. Marcus Reeg, Dirk Wittneben, Uwe Sandfort, Marc Abadir
• M&A Advisor : CloseBrothers Plc (J. Perkins, O. Boot, N. Schmitz)
• Commercial due diligence : Management Partners (Dr. A. Kraus, Dr. F.-W. Telgheder)
• Financial : Deloitte & Touche (E. Sachsalber, M. Bühler)
• Legal : SJ Berwin (T. Pauls, Dr. C. Brenner)
• Tax : SJ Berwin (G. Thomas)
  

Sell-side :

GSO Capital Partners (T. White, M. Baliotti)

• M&A: Goldsmith, Agio & Helms (S. Beck, C. Haskett)
• Financial Vendor DD: E&Y (W. Taudte)
• Legal: Wollmuth Maher & Deutsch (R. Deutsch, K. Miles)

 

Financing :

• DZ Bank (F. Schehl, M. Culum)

 

About FLEX :

FLEX, headquartered in Steinheim, Germany, is a leading manufacturer of highly-engineered hand-held power tools, including grinders, polishers, drills, saws, and other equipment used primarily for specific niche applications in the professional metal-working, stone, and concrete markets. Founded in 1922 in Stuttgart-Bad Cannstatt, Germany, FLEX has a high reputation among professional craftsmen. The FLEX brand stands for innovative product offering of highly-engineered specialty tools and technical leadership and service.
For further information on FLEX: www.flex-tools.com

 

About AXA Private Equity :

AXA Private Equity, an AXA Investment Managers company, with offices in Paris, Frankfurt, London, Milan, New York and Singapore is a world leader in private equity investments. It offers its partners a wide selection of funds, all with proven returns, across a full range of asset classes (buyout, expansion, venture, co-investment, mezzanine, primary, early secondary and secondary fund of funds).

AXA Private Equity manages and advises private equity funds with assets in excess of €10 billion for some of the world’s leading investors. With a constant focus on transparency, performance and sustainable profitability, AXA Private Equity is distinguished by the expertise of its staff and its international reach.

 

Press Contact :

AXA Private Equity
Jérémie Delecourt
+33 (1) 44 45 60 73
jeremie.delecourt@axa-im.com