PMA Group was an internationally leading manufacturer of high-quality cable protection systems. With five subsidiaries in Western Europe and distribution partners in 36 additional countries, PMA supplied the rail, automation and plant engineering industries with corrugated polyacryl pipes and fittings for cable protection in critical applications.

The acquisition

The previous owner, Fränkische Rohrwerke, divested PMA in order to generate liquidity for a restructuring of its shareholder base. HVB Consult managed the time-critical process. NEXX built a trust-based relationship with the CEO within a short period of time, secured exclusivity and was able to close the carve-out thanks to its industrial mindset and shared strategic vision.

Investment Rationale

PMA operated in a market growing by around 5% p.a., driven by railway technology and automation. An EBITDA margin of above 35% and a broad international customer base provided the earnings foundation. Growth levers were identified in geographical expansion (Asia, the Middle East, Eastern Europe, North America) as well as in new application areas (solar, shipbuilding).

Implementation of the growth concept

During the holding period, top-line growth was consistently driven forward. PMA implemented a major project in Saudi Arabia, contributing approximately €6m in revenues. With the Smart-Line, a more price-competitive product range was launched for new, less demanding applications, opening up an additional market segment. International reach was significantly expanded through a greenfield operation in North America with a focus on the rail sector and a subsidiary in the Middle East.

Exit

The exit was completed in February 2010 to Thomas & Betts Corporation, a US manufacturer of electrical installation and connection technology (since 2012 part of the ABB Group).