EMZ Partners to join and support leading industrial “contract logistics” (3PL) player Simon Hegele in a “management sponsored” buy-out as part of an orderly succession plan for Mr. Hegele.
Founding family member Mr. Hegele to remain a significant shareholder and will continue to support the group as trusted advisor and senior board member. Management team around Stefan Ulrich, Christoph Ludin and Mike Winter re-invests and further increases their stake in the company. EMZ Partners invests in subordinated debt and becomes minority shareholder.
The European private equity firm EMZ Partners has entered into a binding agreement to acquire a significant stake in Simon Hegele, headquartered in Karlsruhe, Germany. The transaction allows management to increase their stake, whilst taking on EMZ as a strategic partner to further professionalize group activities and fund identified growth alleys. In addition, founding family member Mr. Hegele remains shareholder and will further contribute to the group`s success as senior board member and through his unparalleled experience and network in the broader logistics industry.
Founded in 1920, Simon Hegele initially started out as a pure moving and transportation company but quickly developed into an international logistics and service provider, becoming a leading firm for industrial “contract logistics” (3PL) in Germany and the global market leader in the segment “healthcare services”. Main operations cover contract logistics services, which include value-added services for pre-assembly, installation, and reverse logistics of large-scale medical devices as well as more basic logistics services for Industry & Retail customers.
Simon Hegele provides its mission-critical services to a diverse blue chip customer base through more than 50 locations worldwide with over 2,500 employees and sets itself apart from competition with industry-leading references and a long-term track record of providing reliable, high quality performance. Furthermore, its broad service offering, high degree of customization, and unique set of qualified employees helps maintain existing customers while attracting new ones. Herby, Simon Hegele profits from highly beneficial secular growth trends in the 3- and4PL markets and will continue to focus on its current service offering while increasing its efforts to expand on value-added services to become a business outsourcing provider.
“We are impressed by Simon Hegele’s historical development into a leading player within the highly complex and challenging market of contract logistics, its superior one stop shop service offering along the entire contract logistics value chain with a focus on high margin value-added services, its long and trustful customer relations with most customers in combination with an exciting outlook. We were also deeply fascinated by the fantastic culture within the firm and the enthusiasm shown by all employees, from management down to warehouse floor workers. We are looking forward to working together with the whole Simon Hegele “family” and the other shareholders”, says Klaus Maurer, Partner in the Munich office of EMZ.
Dieter Hegele, founding family member and senior board member of Simon Hegele, adds: “We are convinced that an external sparring partner and the additional capital from EMZ will help bring the group to the next level in terms of internationalization and operational improvements. The past and ongoing dialogue with EMZ was based on equal footing and we warmly welcome them in the “Simon Hegele family” as true long-term partners.”
Stefan Ulrich, CEO and shareholder: “Over the last years, Simon Hegele already underwent a significant transformation and improvement, but we are far from finished. EMZ’s understanding of the industry, experience, and focus will provide us with a true partner on our journey to achieve and unlock our full potential in the growing and highly complex industry of logistics services.”
Completion is subject to regulatory approval and the terms of the transaction were not disclosed. The investment in Simon Hegele is the fifth transaction of the German EMZ team within one year, underlining EMZ’s clear focus on the DACH region and its execution capabilities.
EMZ was advised by Clearwater International (M&A), goetzpartners (Commercial), Latham & Watkins (Legal, Corporate and Structure), Deloitte (Financial, Tax and Pension), Renzenbrink & Partner (Legal, Finance) and Cubus Partners (Debt Advisory).
ABOUT EMZ PARTNERS
EMZ is a leading European investment firm that acts as a partner for medium-sized companies and their respective management teams. Its activities focus on investments in the DACH region as well as France with a clear intention to operate and support founders, family shareholders, and managers. The core of EMZ’s philosophy is a significant reinvest of the management team to create a mutual partnership as shareholders.
EMZ is majority-owned by its own employees and has a base of European institutional investors. The current fund has a volume of more than €1.0 billion and its investment size ranges from €10 to €150 million.
ABOUT THE SIMON HEGELE GROUP
The Simon Hegele Group is one of the most innovative service providers along complex supply chain processes. The principle of “more than just logistics…” has been the driving force for the further development of the company group and its services for more than 100 years. Simon Hegele offers customers from the healthcare, industry, IT and retail sectors at over 50 locations worldwide highly specialized value-added services tailored to the respective customer processes and supports them in focusing on their respective core competencies.