UK-based alternative asset manager The Carlyle Group acquires German sawmiller Klenk Holz from trust of German banks; Klenk CEO highlights Carlyle's 'strong track record' of turning companies around after challenging period for industry
August 22, 2013
– Global Alternative Asset Manager The Carlyle Group (NASDAQ: CG) today announced the acquisition of Klenk Holz AG, a German manufacturer of wood products, from a trust of German banks.
Capital for this investment comes from Carlyle Strategic Partners (CSP), which manages over $2.0b across three funds and focuses on middle market distressed and special situation investing, with an increasing focus on Europe. Further terms of the investment were not disclosed.
Founded in 1904 by the Klenk family and headquartered in Oberrot, Germany, Klenk Holz AG employs over 1200 people at three sites across Germany. Amongst Klenks products are sawn and pressure-treated timber, edge-glued panels, DIY products, construction timber, laminated timber and formwork beams & panels. Its products are delivered to DIY stores, the construction and prefab housing industry, building centres and carpentry, timber merchants, the packaging industry and others. Klenk exports 40% of its products and has a yearly log input of over 2m cubic metres.
Ian Jackson, Managing Director Carlyle Strategic Partners, said:“Klenk has a firm footprint in the European building materials market, combining strong management expertise with a wide distribution network and well-located manufacturing. Klenk is ideally placed to benefit from the growth in a number of European and international economies, and we look forward to working with management to improve growth and create value.”
Günter Hegemann, Chief Executive Officerat Klenk Holz AG, said: “We are very pleased to have Carlyle working with Klenk. After a challenging period for the entire building materials industry, having Carlyle on board will ensure the business is equipped for the next phase. The strong track record of Carlyle in turning around companies gives Klenk great confidence for the future. ”
Carlyle was advised on the transaction by Latham and Watkins.
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About The Carlyle Group
The Carlyle Group (NASDAQ: CG) is a global alternative asset manager with $180 billion of assets under management across 118 funds and 81 fund of funds vehicles as of June 30, 2013. Carlyle's purpose is to invest wisely and create value on behalf of its investors, many of whom are public pensions. Carlyle invests across four segments – Corporate Private Equity, Real Assets, Global Market Strategies and Global Solutions – in Africa, Asia, Australia, Europe, the Middle East, North America and South America. Carlyle has expertise in various industries, including: aerospace, defense & government services, consumer & retail, energy, financial services, healthcare, industrial, technology & business services, telecommunications & media and transportation. The Carlyle Group employs more than 1,400 people in 34 offices across six continents.
About Klenk Holz AG
Klenk Holz AG is one of the largest companies in the sawmilling and woodworking industry, which is situated among the top 5 in Europe. With three plants and their own timber harvesting company Klenk Holz AG has a leading role in the wood industry.