SLV Elektronik

Country: Germany

Region: Nordrhein-Westfalen

Investors: Hg

Hg’s investment in German lighting specialist SLV has all the hallmarks of a classic private equity investment, allowing a founder owner to realise a profit from years of hard work, and supporting the business in the next stage of its growth.

Following the acquisition in 2007, SLV proved extremely resilient through the financial downturn, driven by market share gains, a highly scalable platform, cost discipline and control over its value chain. Under Hg’s ownership, SLV became a stronger and even more competitive company, expanding into many new geographies and growing jobs, benefiting its employees, its customers and its investors. Hg sold SLV in 2011.

Justin von Simson

Partner - Hg

SLV is a very good example of how Hg added value to an already successful growth business and German 'hidden champion'.

50%

increase in EBIT between 2007 and 2010

50%

increase in number of employees at SLV

What did the business need?

A supportive partner to the management team to harness the business’s potential
Professionalisation and establishment of the processes and functions necessary to take SLV to the next level of its development
Support for international expansion

How did private equity backing create lasting value?

Supported management in acquiring majority shareholdings in international distribution partners, gaining control over the marketing and sales activities
Successfully entered the attractive US market, developing an entry strategy, hiring a high-quality local CEO and setting up the organisational structure
Supported market entries in several additional European countries including Türkiye, Hungary, Slovenia, Finland, Portugal, Bulgaria and Ukraine
Invested in operational improvement by expanding headquarters, warehouse space and equipment to increase logistical efficiency
Hired an experienced CFO
Helped to establish more robust reporting processes