Kolbe, headquartered in Versmold (Westphalia), was one of the leading German manufacturers of marketing and advertising print products as well as high-end labels. The company mastered sheet-fed and web-fed offset printing technologies and added value to its customers by offering product design and development services. Kolbe’s extensive customer base mainly consisted of mid-cap companies („Mittelstand”) as well as a number of large multinational companies from the food and beverage, cosmetics and textile industries.
The acquisition
Equita Holding (Fund III) acquired Kolbe-Coloco in July 2008 together with management from the previous owner Invest Equity, which had reached the end of its holding period. Corporate Finance Partners ran the sale process; NEXX prevailed thanks to a fast-track process and an all-equity financing structure.
Investment Rationale
Kolbe-Coloco operated in a growing segment, supported by an increased demand for high-quality labels, an increasing number of shorter promotional retail sales and growing point-of-sale budgets. The integrated business model combining design and printing with a focus on premium products supported attractive margins. Growth potential was identified geographically (Eastern and Southern Germany, neighbouring countries) as well as via buy-&-build in the fragmented market.
Implementation of the growth concept
A dedicated marketing and sales strategy was developed in 2015 and updated on a yearly basis, broadening the customer portfolio. Management shifted the value creation towards consulting, design and service, positioning Kolbe-Coloco as a niche provider of complex and highly individualised solutions. The sales organisation was professionalised with additional sales staff, improved sales controlling, quarterly sales reviews and regular key account events. At the time of exit, the sales teams were clearly focused on specialised print solutions and high-margin products.
Exit
The exit was completed in May 2018 (with economic effect from 1 February 2018) to the Firmengruppe H. O. Persiehl from Norderstedt, a print specialist founded in 1849 for high-quality folding cartons, labels and multipacks.