Magotteaux
Country: Belgium
Region: Région wallonne
Investors: IK Investment Partners
IK Investment Partners’ four-year investment in Belgian engineering firm Magotteaux is a shining example of the breadth of private equity’s added value. IK brought capital for R&D and investments;strategic analysis and advice; consultation on expansion channels – in both new geographies and market segments; improved governance; stronger financial performance; and much more besides.
In addition to providing a great return to investors in IK’s sixth fund, the investment built Magotteaux into a global leader in its field, created jobs and took the business into high-growth emerging markets. In 2011, Magotteaux moved on to the next stage of its development under the stewardship of Sigdo Koppers, a Chilean mining business.
Bernard Goblet
CEO - Magotteaux
In partnership with IK, we have been able to transform the business and are now firmly established as a worldwide leader.
€120m
investment in R&D and capex
66%
increase in Ebitda during investment period
What did the business need?
Requirement to add business performance orientation to engineering culture
Investment in R&D and maintenance projects
Support for expansion into new geographies
Strategic guidance on where technology could be applied in other markets
How did private equity backing create lasting value?
Lowered sourcing costs, reduced working capital and improved on-time delivery through operational excellence plan
Major investment programme in both core Belgian business and overseas
More than 120m euro spent on R&D and expansion into emerging markets such as Thailand and India
Identified mining as a crucial new sector to target
Overhauled approach to health & safety, halving man hours lost
Introduced several new products
What outcomes did private equity investment achieve?
15% increase in headcount
One third increase in sales to ¤500m and two thirds increase in Ebitda to 66m euro
More than 50% of production capacity now in high-growth countries
In 2011, mining accounted for more than 50% of revenues and profits – significantly from 2007
Investors
