Cinven to acquire SLV Group from HgCapital

Cinven, the European buyout firm, is to acquire SLV Group from HgCapital. SLV Group is one of the fastest growing and most successful providers of lighting products in Europe. The value of the transaction was not however disclosed.

Cinven partner Bruno Schick said SLV is an innovative company which operates a successful business model that delivers a superior value proposition for suppliers, partners and clients. Schick noted that SLV has significant potential and Cinven is looking forward to supporting the proven management team in developing and growing the business.

With Cinven’s pan-European team and its office in Hong Kong, the firm can provide SLV with the additional expertise and an extended financial framework to further push the internationalization of the business, said Schick.

SLV, headquartered in Übach-Palenberg near Aachen, Germany, provides innovative residential and technical lighting products for indoor and outdoor use. The company combines German innovation and European design with cost-efficient production via selected high-quality suppliers, mostly in Asia, with which SLV has long-standing relationships.

Through its outstanding and well-managed value chain, SLV is able to offer high-quality products with innovative design at attractive prices combined with best service and delivery. The superior value proposition has continuously led to increases in market share both in Germany and internationally.

Today, SLV operates subsidiaries and associated companies in Germany, France, Italy, Belgium, Switzerland, Hong Kong, the US and Russia. As a B2B mail-order business, the Company focuses on marketing its products through resellers in over 60 countries across the world and does not sell directly to end users.

Cinven has extensive experience and a wide breadth of expertise in the European consumer and industrial sector. The firm invests in market leading, successful companies to support their growth and further development.

Justin von Simson, German Head of HgCapital commented that when the acquired SLV in 2007, it was impressed by the unique "SLV System", its well-managed operations and its control over the value chain. SLV’s navigation through the financial crisis over the last few years is a clear evidence of its robust business model and that it is a well-run company by highly skilled and committed people, noted Simson.

Detlef Harms, CEO of SLV Group separately said that together with HgCapital, the firm has brought about excellent development over recent years. With Cinven, SLV has found the ideal partner for the next stage of its development and is looking forward to successfully pushing SLV's internationalization, said Harms.

5th April 2011

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