In a stagnant economic environment, businesses have to implement change in order to enhance revenues and take those much needed next steps forward. Value can be created through partnership with experts who have a proven track record in working with management to jointly deliver growth.
In 2006, German-based KTP was growing relatively steadily in a niche market, developing and producing transport containers and pallets for the automotive industry. The company’s family owners needed to broaden their offering internationally, and, in AXA Private Equity, found a partner who could provide them with the required financial and operational support.
AXA Private Equity’s international network, capital and expertise have helped KTP put in place the foundations for our future development.
Andreas Wintrich CEO, KTP
What did the business need?
- Broaden the consumer base
- Diversify income streams by increasing sales in segments beyond automotive
- Facilitate family ownership succession
- International expansion
How did private equity backing create lasting value?
- Development and marketing of new products with improved features
- Extension of the production capacity (20% of EBITDA invested on average every year in product machinery)
- Increase capacity to deliver products to an international client base
- Implementation of best-in-class governance with modern reporting, controlling and budgeting systems
- Strengthening of the management team
What outcomes did private equity investment achieve?
- Revenues almost doubled from €13.5m in 2006 to €24 million in 2011
- International market represents 35% of revenues, up from 25% five years earlier
- The founder’s son regained majority control following AXA Private Equity’s exit in 2011
- 3.5x return for investors in AXA Private Equity’s fund