Sistema Finance announces an acquisition of a minority stake in Gienanth

Sistema Finance S.A., the international investment arm of Sistema PJSFC focused on mid-cap investments in the DACH-region and Europe, has completed a transaction with Deutsche Beteiligungs AG (“DBAG“) to acquire a minority stake in Gienanth GmbH (”Gienanth“).

Gienanth is a leading German iron foundry with a focus on machine-moulded and hand-moulded castings for the automotive supplier and other industries. Founded in 1735 and currently operating two iron foundries in Eisenberg and Fronberg, Germany, Gienanth has one of the longest and richest traditions in the foundry industry, with worldwide sales of over €100 million and capacity of more than 100.000 tons per year.

DBAG is a leading German listed private equity company with approximately €1.8 billion under management and over 20 companies in its current portfolio. DBAG’s entrepreneurial approach to investing makes it a sought-after investment partner in the German-speaking world.

Sergey Drozdov, Managing Director of Sistema Finance, said:

“We are excited about our investment in Gienanth GmbH, a world-renowned technological leader in its market with a centuries-long tradition of successful and sustainable innovation, and about our relationship with Deutsche Beteiligungs AG, one of Germany’s oldest and most highly-respected private equity firms.  As an investor, we look forward to working with Gienanth’s management, especially to use our network and knowledge of the Russian market to help the company explore opportunities to expand its business there.”

Torsten Grede, Spokesman of the Board of Management of DBAG said:

“We welcome Sistema Finance as an investor in Gienanth and look forward to working with them on our shared goal of expanding the business. Joining forces with Sistema Finance reflects our strategy of collaborating with experienced partners, who are also sharing our commitment to responsible long-term development.”

Dr. Hans-Jürgen Brenninger, Chef Executive Officer of Gienanth GmbH, adds:

“We believe this is a good time to expand Gienanth’s footprint into new markets. Sistema Finance’s knowledge and expertise make it a valuable ally in realising this long-term ambition.  Besides gaining greater access to additional markets we are also pleased to get an investor who shares our vision of balanced, sustainable and strong growth.”

About DBAG
Deutsche Beteiligungs AG is one of Germany’s leading private equity companies. DBAG has been investing directly in Germany’s ‘Mittelstand’ since 1965 and, through the purchase of DBAG shares, provides an opportunity for investors to invest in a portfolio of successful companies – companies that form the backbone of German industry with leadership positions in their markets.
For more information, please visit www.dbag.de

About Gienanth
Gienanth GmbH is a 280-year-old iron foundry with a proven history of industry leadership, excellence, and leading-edge technology and current production capacity of more than 100.000 tons per year.  Gienanth’s long-lasting customer relationships and industry specialisation have earned it a strong market position in certain machine-moulded and hand-moulded segments, including clutch parts and highly sophisticated cylinder crankcases for large-size diesel and gas engines.
For more information, please visit www.gienanth.com

About Sistema Finance S.A.
Sistema Finance S.A., based in Luxembourg, is the international investment platform of Sistema PJFSC, the largest public investment holding in Russia.  Since 2015 Sistema Finance S.A. has focused on €10m – €50m equity investments in assets which have the potential to generate stable cash flows and to benefit strategically from the expertise of the Sistema’s existing network.
For more information, please visit www.sistemafinance.eu or contact us via email enquiries@sistemafinance.eu