Leobersdorfer Maschinenfabrik (LMF) was an internationally leading manufacturer of high-pressure compressor systems for air, natural gas and other technical and industrial gases at pressures ranging up to 600 bar. More than 90% of its production was exported worldwide; with approximately 80% market share, LMF was the global market leader for compound compressor units used in offshore seismic exploration of oil and gas.
The acquisition
The previous owners Invest Equity and Nord Holding were looking for a new co-shareholder at the end of their holding period. R.W. Baird ran a structured auction process; NEXX prevailed thanks to its speed of execution, its extensive Mittelstand experience and bringing its longstanding network to the table.
Investment Rationale
As global market leader for seismic compressors, LMF held a strong market position in a then growing energy investment cycle. A successful international footprint in growth regions as well as a well-diversified blue-chip customer base provided the foundation. Growth avenues were identified in the API and CNG segments (including CNG filling stations) and the expansion of the after-sales business.
Implementation of the growth concept
During the holding period, market positions in the API and CNG segments were systematically expanded in order to reduce the reliance on the cyclical seismic business. In 2007 an Argentinian subsidiary was acquired for CNG production in order to develop the South American market. The global sales presence was further strengthened and the after-sales business was expanded as a recurring earnings base. Over the course of the holding period, changing conditions in the energy markets – in particular the oil price decline from 2014 onwards – affected customers’ investment appetite.
Exit
The exit was completed in April 2016 to the Kaishan Group, a leading Chinese manufacturer of screw and high-pressure compressors headquartered in Quzhou (Zhejiang).