PHI closes the first 3 acquisitions of its third fund in 2021 and completes the divestment of Hitecsa
- PHI has acquired two ceramic insulator manufacturers for the energy infrastructure industry: Lapp Insulators, GmbH and PPC Insulators.
- With the investment in HD Daza, PHI enters the insurance brokerage market.
- The year ends with the divestment of Hitecsa after 9 years in the portfolio.
Madrid, January 2022
PHI Industrial closed a year of intense activity with three investments and one divestment. Following the 2020 launch of the third Special Situations fund, the first three investments were completed during the second half of 2021, and there are good prospects to continue completing acquisitions throughout the first part of 2022. In addition, PHI has divested Hitecsa, belonging to PHI Fund I, after 9 years in the portfolio.
PHI has consolidated its position – after more than 15 years active in the sector and 3 funds – as a benchmark in the Special Situations market in Spain and Europe (through its offices in London and Milan); and as the undisputed leader in business carve-outs to large corporations.
The new fund kickstarted with the acquisition of Lapp Insulators, GmbH. Lapp, based in Germany and formerly part of the German Pfisterer Group, is a leading global manufacturer of ceramic insulators.
In 2021, Lapp achieved a turnover of over 65 million euros, has more than 500 employees, as well as production plants in Germany, the US, Poland and Romania. Their products are used in high-tension transmission lines, electric power plants, substations and the railway electrification network.
Alexander Wit, founding partner of PHI, comments on the new acquisition: “Lapp is a strong brand with worldwide recognition and under PHI’s management we expect it will become a more dynamic company and pioneer in the market”.
PPC Insulators confirms PHI’s commitment to the ceramic insulators market. The fund’s second acquisition, PPC Insulators, is the result of a split by Seves group (owned by the Triton Partners since 2014), and complements the acquisition of Lapp 6 months later. With an annual turnover of more than 65 million euros and based in Vienna (Austria), PPC Insulators has more than 800 employees and production plants in Germany, Brazil and Slovakia, along with commercial branches in the US and China.
Wit said: “The acquisition of PPC confirms our strong focus on the ceramic insulator market. The energy sector is undergoing a transformation and there are growing electrification needs to be met in a sustainable way, in line with the environmental requirements of today and tomorrow. We believe that the products and solutions offered by PPC will meet the challenges of this transformation”.
PHI has reached an investment agreement in the insurance brokerage firm HD Daza Iberia. PHI has entered the insurance sector by investing in HD Daza Iberia. This is the first of many acquisitions to come, with the aim of helping in the consolidation and professionalization of the medium to low range brokerage sector, under the guidance and experience of Agustín Daza, founder of the company.
Daza comments: “I have found in PHI the ideal partner to launch a project similar to the one I have already carried out in Argentina, which is consolidating and growing insurance portfolios with the idea of professionalizing the business, achieving greater efficiencies and providing differential services and value for the end customer. We are looking for opportunities in Spain for portfolios of up to €2m of net commissions”.
The transaction is pending regulatory approval and is expected to be completed in early 2022.
PHI divested Hitecsa, after 9 years in its portfolio. Hitecsa has been divested to Baxi Industrial Group, which plans significant investments to boost the business in the coming years.
PHI acquired Hitecsa in 2012 in a situation of insolvency with an original format at the time, as it was the first company acquired by a private equity firm in the format of “Unidad Productiva (acquisition of a business unit under Spanish insolvency procedure). Hitecsa integrates two businesses: On one hand, there is the aerothermal and air conditioning business (represented by the Hitecsa brand); and on the other, the high-efficiency boiler business (Adisa Heating).
At PHI we are proud of the work carried out in Hitecsa throughout the investment period, which began with a complex acquisition, followed by a successful restructuring and the incorporation of Adisa Heating, and that has culminated in a divestment to an ideal partner, who will continue to invest and grow the business.
About PHI Industrial: PHI is a group specializing in the acquisition and active management of companies in special situations, including spin-offs of multinationals. PHI invests in companies where it detects the capacity to generate value through improved operations. Based in Spain and Italy, PHI Industrial is interested in acquiring majority stakes in European and mid-sized companies. PHI has completed 23 acquisitions in the last decade and is one of the most active funds domestically.
Alexander Wit, founding partner, says: “We offer expertise, transaction security and long-term commitment to the companies we acquire.
