MEN was a leading European developer and manufacturer of fail-safe computers and electronic subgroups for the rail industry. The electronic components were used globally for safety- and mission-critical functions in control and process measuring technology, where reliability was paramount even under harsh environmental conditions such as large temperature variations, dust, vibrations or humidity. Application areas included rail and traffic control as well as aviation, commercial and agricultural vehicles, complemented by industry automation, power generation, mining and medical technology.
The acquisition
Equita Holding (Fund III) / Equita CoVest (Fund IV) acquired MEN in 2013 together with management. The three founders had put the company up for sale through a structured bidding process; the shareholders ultimately chose NEXX as the planned growth strategy and long-term orientation aligned with their own vision for MEN’s further development.
Investment Rationale
MEN operated in a market segment shaped by increasing connectivity, demands for safety and power efficiency and rising complexity in applications. The company differentiated itself through proven development competence, high product quality and numerous certifications for rail, avionics and automotive applications. A diversified customer base and a broad product portfolio had proven resilient even in cyclical phases.
Implementation of the growth concept
Together with management, the continuous development of the existing product platforms was pursued with a particular focus on mission-critical applications. The international presence was expanded through additional sales and service staff in the US and China, complemented by service and assembly facilities at the US subsidiary and a dedicated local sales office in China. New hires to the international sales team operating from Germany enabled a more targeted approach to promising markets in Central and East Asia. In parallel, strategic collaborations were established with leading industrial players in the rail industry in order to accelerate access to additional geographies and product markets.
Exit
The exit was completed in May 2018 to Deutsche Beteiligungs AG (DBAG), a listed German private equity investor that subsequently merged MEN with its Swiss portfolio company duagon.
