As part of a leveraged buy-out, Frankfurt investment company DZ Equity Partner GmbH (DZEP) is acquiring shares in the PAIDI Group, based in Hafenlohr in Lower Franconia. The shares are being sold by the previous major shareholder, Welle Holding AG. The latter, as well as the management, which already held a stake in PAIDI, remain financially linked to the company as partners. The transaction is still subject to approval by the antitrust authority. It was agreed to keep the size of the purchase price confidential.
PAIDI is the leading brand manufacturer in Germany of furniture for babies, children and adolescents. With a payroll of some 500, the group manufactures and distributes from its bases in Hafenlohr, Germany, and Kolbuszowa, Poland. Specialist baby stores and the furniture trade are the main buyers of PAIDI products. In 2006, the company posted sales of EUR 42 million.
Managing Director of the PAIDI Group, Peter Beyer, is looking forward to the future collaboration: "With the entry of DZ Equity Partner as a minority shareholder and the agreement on a strategic partnership, we are strengthening our position in the German market without relinquishing our independence." Udo Groene, also PAIDI Managing Director, believes the participation is a key strategic step to significantly boost the group’s distribution activities and working together with the investor to devise new development prospects. This would enable past successes to be moved forward in the future.
"In the form of its long-standing managing directors Peter Beyer and Udo Groene, PAIDI has a successful management team that in coming years will continue to be dedicated to the company and will favourably support implementation of the planned growth strategy," comments Olivier Weddrien, Managing Director at DZEP. Werner Welle, CEO of Welle Holding AG, adds: "With DZEP now on board, we feel PAIDI has stable foundations from which to consistently exploit market opportunities as they arise and press ahead with its success story."
The PAIDI furniture programme is located in the medium and upper price segments, and links the diverse standards expected of modern rooms for babies, children and young people to form an over-arching concept: The furniture elements can be transformed, combined, expanded and thus adjusted to stay in line with the child’s particular age. PAIDI first established itself as a brand back in 1935 when it manufactured the first mass-produced classical children’s cot-bed with bars.
Welle Holding AG was advised on the transaction by Dr. Axel Gollnick, Managing Partner of M&A International GmbH.
PAIDI is the leading brand manufacturer in Germany of furniture for babies, children and adolescents. With a payroll of some 500, the group manufactures and distributes from its bases in Hafenlohr, Germany, and Kolbuszowa, Poland. Specialist baby stores and the furniture trade are the main buyers of PAIDI products. In 2006, the company posted sales of EUR 42 million.
Managing Director of the PAIDI Group, Peter Beyer, is looking forward to the future collaboration: "With the entry of DZ Equity Partner as a minority shareholder and the agreement on a strategic partnership, we are strengthening our position in the German market without relinquishing our independence." Udo Groene, also PAIDI Managing Director, believes the participation is a key strategic step to significantly boost the group’s distribution activities and working together with the investor to devise new development prospects. This would enable past successes to be moved forward in the future.
"In the form of its long-standing managing directors Peter Beyer and Udo Groene, PAIDI has a successful management team that in coming years will continue to be dedicated to the company and will favourably support implementation of the planned growth strategy," comments Olivier Weddrien, Managing Director at DZEP. Werner Welle, CEO of Welle Holding AG, adds: "With DZEP now on board, we feel PAIDI has stable foundations from which to consistently exploit market opportunities as they arise and press ahead with its success story."
The PAIDI furniture programme is located in the medium and upper price segments, and links the diverse standards expected of modern rooms for babies, children and young people to form an over-arching concept: The furniture elements can be transformed, combined, expanded and thus adjusted to stay in line with the child’s particular age. PAIDI first established itself as a brand back in 1935 when it manufactured the first mass-produced classical children’s cot-bed with bars.
Welle Holding AG was advised on the transaction by Dr. Axel Gollnick, Managing Partner of M&A International GmbH.
