ZM Opportunity II L.P., a fund advised by Patrimonium Private Equity (formerly Zurmont Madison Private Equity) has sold its shareholding in CCS Group Holding AG (“CCS”) to GPV International A/S (“GPV”), Denmark’s largest EMS (Electronics Manufacturing Service) company, which is owned by Danish industrial conglomerate Schouw & Co. The combination of the GPV and CCS Group will create one N6of the largest EMS companies in Europe with revenues of about EUR 350 million and 3,700 employees.
CCS Group was founded in Switzerland in 1985 and provides electronics sub-assembly solutions and finished products (box-build) to their customers in high-mix and low-volume series. Furthermore, CCS has its own product design and engineering unit as well as cable-harness manufacturing specialising in cable customisation. In 2011, Zurmont Madison Private Equity acquired a majority stake in CCS as part of a succession agreement. With the commitment and financial investment by the new owners CCS’ expansion and growth strategy accelerated. In the last years, turnover has more than tripled to EUR 190 million in 2017 accompanied by significant jobs growth from around 1,000 employees to 2,300 employees.
The transaction agreed upon strengthens the market positions of both companies as GPV and CCS complement each other on three continents. Today, most of CCS’ customers are based in the German-speaking parts of Europe whereas most of GPV’s customers are headquartered in northern Europe. GPV has production facilities in Denmark, Mexico and Thailand, while CCS has production facilities in Switzerland, Germany, Austria, Slovakia, Sri Lanka and China. As such, the bigger organisation will have the power and capacity to take on a greater volume of jobs from the combined customer base and grow the business. The newly formed EMS group will take the name of GPV, and its head office will be in Denmark led by group CEO Bo Lybæk. CCS CEO Thomas Kaiser will continue to lead CCS and be responsible for its integration into the new group.
GPV’s CEO Bo Lybæk said: “Together we will form an overall stronger EMS group: The combined organisation will stand stronger in the value chain versus the customers in both GPV and CCS markets. We see a big potential in staying focused on the HMLV (High-Mix/Low-Volume) segment.”
Werner Schnorf, Managing Director of Patrimonium Private Equity, added: “It was an exciting challenge to accompany and support the development of the CCS Group into a new dimension over the past seven years. According to our buy and build strategy, we provided financial backing and our industrial know-how to consequently develop the company into well-positioned European EMS outsourcing partner. We are happy to pass our shareholding on to a committed partner who will continue to support the group in its further development in order to create an EMS leader in electronics focused on box-build and mechatronic products.”
Launch of a new Private Equity Fund With the sale of CCS, the last portfolio company of the ZM Opportunity II L.P. Fund has been successfully sold. Patrimonium Private Equity is launching a new buyout fund investing in midsized companies focusing on the topic consolidation, internationalization and digital transformation. A corresponding fundraising program has been recently launched.