DEIMOS, a mechanical engineering company, with support of the Genesis Private Equity Fund III (GPEF III) builds an industrial group D2G
D2G is a group of Czech mechanical engineering companies active in the field of industrial technologies with more than 25-year-long-history. The goal of D2G is to become the market leader in Central Europe. As a group, it will be able to offer its customers a consolidated portfolio of products and services covering all client needs in terms of industrial automation.
“The successfully completed transaction will enable us to significantly strengthen our acquisition and growth strategy. The D2G group, which has been established on the platform of Deimos, will be able to comprehensively cover our clients’ needs,” says Jan Kislinger, CEO of D2G, while adding: “The capital entry of Genesis is a proof that our team has been doing a great job.”
Genesis funds (GPEF III in the case of D2G) provide firms such as D2G with the capital needed to fund their growth and acquisition driven strategy. GPEF III focuses on companies with a strong growth potential and finances them using the capital entrusted to the fund by renowned institutional investors.
“We seek interesting projects and dynamic firms with strong mid- and long-term growth potential, and we believe D2G has such potential. We expect the group to further expand on an international scale,” Lucie Baleková, member of the Investment Committee of GPEF III and the Chairwoman of the Supervisory Board of D2G, comments on the investors’ expectations. She possesses a wealth of managerial experience from industrial and automotive companies, including executive positions from firms such as SWELL, Plastkov Group, TRW Automotive and others.
The group has also taken on board Ms. Hana Kyselová who has assumed the position of group CFO, being responsible for financial management and controlling at D2G. Previously, Ms. Kyselová held the position of CFO at companies like The Boston Consulting Group, Rockwell Automation and others.
PwC and the Jaroš & Vávra law firm were involved in the transaction on the part of D2G, and Deloitte and Kinstellar on the part of Genesis.
D2G: A new era of proven manufacturers and suppliers
DEIMOS and OK NAVY, the companies that represent the core of the group, will be joined by another important member. D2G’s latest acquisition is KVELB, an established distributor of industrial drive solutions. “Set to achieve a turnover of approximately CZK 150 million this year with more than 60% of revenue attributable to export, KVELB will be newly integrated in the D2G structures under the name D2Drives,” informs Jan Kislinger. “By selling a 100% share to D2G, we are turning a small, family-owned business into a more powerful player. We want to provide sophisticated services to our customers. In addition, we will expand our team in order to serve new clients at the highest quality standards. The demand for industrial drive solutions is growing continuously and we will gain a considerable potential for our further growth as part of D2G,” comments David Hél, the former member and managing director who will remain in charge of executive management of D2Drives as part of the group.
Brands of the other companies in the group will change as well. After 25 years of successful market presence, they are entering a new era together under the single “D2” brand. “Aside from aiming to emphasise that this truly means a major milestone and a new era in our activity, we are also consolidating our brands and renaming our firms in order to reflect their global reach. 70% of our output is currently being exported,” Jan Kislinger explains the rebranding concept.
D2Automation (formerly DEIMOS) has been active in the field of industrial automation since 1992. It supplies automation technologies to key automotive industry subcontractors in 14 countries on four continents. The company has about 80 employees and posts year-on-year growth rates in tens of percent. Vladislav Němec has been its CEO since 2016.
D2Manufacturing (formerly O.K. NAVY) has been providing specialised services in mechanical engineering, precision tool making and moulding since 1992. The company has been under the new leadership of CEO Tomáš Vogel since the spring of 2017.
D2Drives (formerly KVELB) is one of the premium distributors of industrial drive solutions in the Czech Republic. As a major Siemens Solution Partner, the company has access to top-tier technologies and standards and holds qualified authorisations to modify all types of electrical motors based on individual client needs. David Hél remains in the position of the company’s CEO.
Genesis Funds in figures
4 private equity funds
€ 170 million
€ 4-12 million per investment
Czech Republic, Slovakia, Poland, Hungary and Austria
Genesis Capital provides advisory services to private equity funds offering access to financing for growth and development of small and medium-sized companies in the Czech Republic and Slovakia. Since its foundation in 1999, Genesis Capital has provided consultancy to four private equity funds with a cumulative size exceeding EUR 170 million. These funds supported over 45 firms, having invested over CZK 3 billion. Many of those firms became leaders in their respective fields also thanks to their cooperation with Genesis.
Currently, the Genesis Private Equity Fund III (GPEF III) with the size of over EUR 80 million is actively investing. Similar to its predecessors, GPEF III focuses on investments into small and medium-sized enterprises in the Czech Republic and Slovakia, with the option to allocate part of the resources also to direct investments in Poland, Hungary and Austria.
Investors in GPEF III are mostly local and international institutions and investment firms such as the European Investment Fund (EIF), Česká spořitelna (member of Erste Group), Amundi Czech Republic (member of international group Amundi), Kooperativa pojišťovna and Česká podnikatelská pojišťovna (both members of Vienna Insurance Group), a Finnish fund-of-funds firm eQ Private Equity, a pension fund of a renowned global company, and a Czech family office.
Currently, the Genesis funds hold shares in the following companies: KS Klima-Service, GTH catering, Aranea, 3070, Quinta-Analytica, POS Media and HP Tronic/Datart.
D2G in figures
17 export markets
More than CZK 450 million of planned consolidated revenue in 2017
Czech Republic, Slovakia, Poland, Hungary, USA, Mexico, Brazil, India, China, Russia and other
D2G is a mechanical engineering group of Czech companies active in the field of industrial technologies. It focuses on custom-order manufacturing of equipment for industrial automation, precision tool making and industrial drive solutions.