Rovema was a leading manufacturer of flexible packaging machinery and lines with particular expertise in primary packaging for the food industry. The company is regarded as the inventor of the continuous vertical form, fill and seal machine (VFFS); the product offering ranged from individual machines to complete packaging lines including dosing units and cartoning equipment.
The acquisition
Equita Holding (Fund III) / Equita CoVest (Fund IV) acquired Rovema in 2015 from its long-term shareholders. Initial contact had been established in late 2012; over the following years a trustful relationship with management was established. Despite interest from strategic and financial bidders, the transaction was secured on a proprietary basis; management reinvested a substantial part of the proceeds.
Investment Rationale
Rovema operated in an export-oriented market segment with high barriers to entry, driven by the shift towards flexible single-portion packaging and higher requirements for hygiene and performance. The service business contributed around 30% of revenues and provided a recurring earnings base. In addition, Rovema differentiated itself through complete turn-key solutions including a proprietary control software – a clear unique selling proposition versus its main competitor.
Implementation of the growth concept
During the holding period, the former US licensee Rovema Packaging Machines LP was acquired in order to secure direct customer access and the spare parts business in North America. A sales subsidiary in France was established in 2016 and contributed materially to international growth. The technological improvements of the latest machine generation – enhanced hygiene features and control systems – were systematically rolled out across the entire premium product portfolio. In addition, new product markets were opened up with specialised machines for the price-sensitive snack food and frozen food segments.
Exit
The exit was completed in November 2017 to Franz Haniel & Cie. GmbH, a long-established family-owned industrial holding company based in Duisburg with a long-term investment approach.
www.rovema.com
