SCHOCK invented the quartz composite kitchen sink (commonly known as the „granite sink”) and has since been the worldwide technology and quality leader in this segment. More than 60% of all quartz composite sinks manufactured worldwide are based on the production technique developed by SCHOCK. Based on the quartz-acrylic compound patented by SCHOCK, a premium product is created – three times harder than natural granite and superior in product performance to sinks made of stainless steel or ceramics.
The acquisition
Equita Holding (Fund III) acquired SCHOCK in 2010 together with management. The previous owner CMP divested the company following a successful restructuring; Lincoln International ran the structured sale process. NEXX prevailed against the broader competition on the back of an all-equity financing, fast execution and a strong fit with management.
Investment Rationale
The market segment for quartz composite kitchen sinks was growing structurally, supported by the design trend towards open-plan kitchens and the material shift away from stainless steel. With the new CEO Mr. Boberg, who knew the company well from his previous role, an experienced Mittelstand manager was on board. Growth potential was identified through international expansion (US, Asia) as well as strategic OEM partnerships with leading global furniture and home improvement retailers.
Implementation of the growth concept
The revenue share of the premium material Cristadur was increased from 17% (2010) to 44% (2015). A contract with a globally leading furniture retailer was signed in 2013 and exceeded expectations; the launch in North America in 2014 brought leading home improvement and sanitary retailers as well as additional strategic key accounts. New materials (Cristastone, Carbon, Cristadur Extreme) and product categories (shower trays) were introduced; strategic partnerships with leading sanitary equipment manufacturers (for sinks and countertops), as well as the entry into the high-margin bathroom market with renowned premium bathroom brands, opened up new growth areas. A new marketing concept positioning the company as the „Quartz Alchemist” accompanied the strategic market expansion.
Exit
The exit was completed in December 2016 to IK Investment Partners (IK VIII Fund), a pan-European mid-market private equity investor focused on industrial and consumer goods companies.
www.schock.de
