Altor and SMS Consider Selling Kaefer Stake
Altor Equity Partners and SMS Group are exploring a potential sale of their 50% stake in Bremen-based industrial services group Kaefer, which could value the business in excess of €2bn, according to a report by Bloomberg citing unnamed sources close to the matter, as covered in Private Equity Wire. The stake is being marketed with the assistance of Deutsche Bank AG, and discussions remain at an early stage with no guarantee of a completed transaction.
Kaefer’s Operations and Financials
Kaefer employs around 35,000 staff and provides technical services such as insulation, scaffolding, and surface protection to industries including oil and gas, shipbuilding, and mining. The company generates approximately €250m in EBITDA annually and has drawn interest from private equity investors, reflecting its established position in the industrial services sector.
Background of the Ownership
Kaefer’s founders, the Koch family, sold their 50% stake to Altor and SMS in 2021 to enable the firm to focus on sustainable initiatives, such as energy transition and decarbonisation efforts. Representatives for Altor, SMS, Deutsche Bank, and Kaefer have all declined to comment on the potential sale, according to the report.
Widely-Known Context in Private Equity
As a widely-known trend, private equity firms often explore stake sales to realize returns, though such processes can be uncertain; in this case, the potential valuation highlights ongoing interest in industrial services firms amid sector growth.
