AURELIUS AG sets up new subsidiary to invest in German Mittelstand companies
- AURELIUS Mittelstandskapital to focus on profitable German SMEs
- Companies profit from the AURELIUS Group’s strong capital base
- Long-term investment horizon and operational support
Munich, August 12, 2014 – Profitable companies with strong management and potential for further growth: these are some of the selection criteria to be applied by the new AURELIUS Mittelstandskapital GmbH subsidiary. Over the last eight years, the internationally thriving AURELIUS Group (ISIN DE000A0JK2A8) has attracted attention mainly by successfully restructuring companies showing potential for improvement. With AURELIUS Mittelstandskapital, the company is now additionally looking to tap a new and highly lucrative line of business in the current market environment. AURELIUS Mittelstandskapital with its team of four experienced M&A professionals is aiming to take majority interests in companies with annual revenues of up to EUR 50 million in the form of leveraged buyouts. Its target companies demonstrate a double-digit EBITDA margin, a good cash flow profile, an established market position and a good customer base together with the potential to expand both revenues and earnings by means of organic growth and add-on acquisitions.
The German Mittelstand contains a large number of promising takeover targets for the new AURELIUS subsidiary. The structure of the economy in the German-speaking area is shaped heavily by family enterprises and mid-sized firms, many of which are among the global market leaders in their fields. “The dynamism, growth and international success of the German Mittelstand are really impressive,” says Donatus Albrecht, the member of the AURELIUS Executive Board responsible for M&A activities. “We want to profit from this fact. In this context, an investment by AURELIUS Mittelstandskapital is also a highly promising opportunity for the companies to be acquired. This is especially the case with succession solutions as well.” Corporate spin-offs and expansion financing represent further major opportunities for AURELIUS Mittelstandskapital to acquire a participating interest. Unlike with conventional investment funds, the commitment by AURELIUS Mittelstandskapital is not tied to a specific maturity. “Besides offering a strong capital base, we also assist the companies with our many years of entrepreneurial experience and can provide operational support for them, if required,” comments AURELIUS Mittelstandskapital managing director Carsten Abdel Hadi. “As a team, we have concluded more than 50 transactions, which is a unique achievement on the German market.”