12.02.2004

PAT parent company sold

Düsseldorf-based Rheinmetall AG has sold Hirschmann Electronics GmbH & Co. KG of Neckartenzlingen, the parent company of PAT, leading producers of crane load moment indicators, to a management buy-out funded by private equity investor HgCapital.

The transaction is effective as of December 31, 2003 but is subject to approval from the relevant cartel authorities. The price paid including the assumption of liabilities is €115 million (£78 million). This completes Rheinmetall's exit from the electronics sector.

In fiscal 2003, the Hirschmann Group, which employs a workforce of around 1,750, generated sales of over €280 million (UK£189.82 million). An electronics specialist, Hirschmann operates in the markets for car communication systems, multimedia electronics, automation and network solutions, and electronic control systems for construction machinery. PAT represents around 15 per cent of Hirschmann in terms of both employees and revenues.

HgCapital has offices in London and Frankfurt and has now completed four acquisitions within the German market during the last fourteen months, all within the automotive industry. The group focuses on companies with enterprise values ranging from €40 million (£27.12 million) to €400 million (£271.18 million) and specialises in the industrials, media, consumer, healthcare, technology and leisure industry sectors.