Bridgepoint acquires Rodenstock of Germany
German manufacturer of ophthalmic lenses for spectacles Rodenstock has been acquired by European private equity firm Bridgepoint from Permira for an undisclosed sum. The transaction is subject to approval of the competition authorities.
Rodenstock, founded in 1877, is Europe's No 3 and the global No 4 in the manufacture of optical lenses and frames. A strong B2B brand internationally but with a consumer base in Germany, it is mainly present in Europe where 80% of the company's sales are for prescription lenses.
The company employs around 4,300 people worldwide and is represented by sales branches and distribution partners in more than 80 countries. It has production facilities for lenses at 11 locations in 10 countries with two thirds of its output in Europe, over 50% of which is in Germany. Revenues for the business in 2005 were €345 million.
The company has also developed leading manufacturing technology for high performance progressive lenses. Bridgepoint estimates that the global market for corrective lenses is worth between €7.5 and €9 billion, of which 28% is in Europe.
According to Uwe Kolb, Bridgepoint partner responsible for investment activity in Germany, the Rodenstock brand is one of the company's key assets in a market enjoying annual growth rates in excess of 4% for its core products.
“Rodenstock is a strong European business which leads its home market and has a growing global footprint. It is well placed to take advantage of robust markets which are largely driven by an aging and wealthier population which values high performing products and sees spectacles as a fashion and lifestyle item more than a medical necessity” he said.
Giancarlo Galli, CEO of Rodenstock said: “We are happy with Bridgepoint as our new shareholder. Bridgepoint is fully backing the strategic direction we have been following the last three years, and has – for us very important - presented a well-based and growth-orientated financial concept. This concept will allow us to continue to work on and develop our “Path to Profitable Growth” in a logical and successful way.”
“Over the last years, Permira has played a very major role in building a stable base for the business, and I want to thoroughly thank all the people at Permira who have contributed to that. Today, Rodenstock is again an attractive company, in the forefront of technology for spectacle lenses and frames. It has a state-of-the art product portfolio and excellent prospects, competitive environment, nationally as well as internationally” he concluded.
Following the acquisition of Rodenstock by the Permira Funds in June 2003, Rodenstock repositioned itself with a focus on style, innovation and technology leadership. In order to achieve this, the company has since invested a total of €100 million. Research and development expenditure have increased 50% since 2003. Thomas Krenz, Managing Partner of Permira in Frankfurt added: “To us Rodenstock is a very good example of how a private equity investor and a company with a family background can complement each other. Together with management and the employees of Rodenstock, we managed to turn the company into one of the trendsetters which represents a benchmark in the optical industry.”
Debt for the transaction was provided by Royal Bank of Scotland and Société Générale. Advisers involved in this transaction include: for Bridgepoint – Credit Suisse (corporate finance), Roland Berger (market due diligence), KPMG (financial), Ernst & Young (taxation), Kirkland & Ellis International (legal), Mercer (pension due diligence), PwC (operational and manufacturing), ERM (environmental due diligence), Willis (insurance); for Permira – Drueker & Co (M&A), Hengeler (legal), PriceWaterhouseCoopers (accounting), Ernst & Young (tax) and Rothgordt & Cie (market).