Ex-Bear banking chief seals first deal with new boutique
The boutique investment firm co-founded by Bear Stearns’ former co-head of European investment banking has completed its first deal - acquiring a German power systems company owned by the private equity fund run by Credit Suisse's ex-chief executive, Leonhard Fischer.
BLM Partners, which was founded earlier this year by former Bear Stearns banker Florian Lahnstein, along with former Bertelsmann chief executive Thomas Middelhoff and Roland Berger, founder of Roland Berger Management Consultants, has sealed its first deal with the take over of AEG Power Solutions for €250m ($364m).
AEG Power Solutions was previously owned by Belgian private equity RHJ International, whose chief executive Leonhard Fischer is the former chief of Credit Suisse and also of Dresdner Bank's investment banking arm. Fischer will remain on the board of AEG.
The acquisition was arranged through a rare reverse initial public offering technique whereby BLM set up a special purpose investment vehicle, Germany1 Acquisition Ltd, which was floated on Euronext last year raising €250m. This money was was then used to buy AEG.
Lahnstein said: “We are delighted with the successful outcome of this transaction. We look forward to working with the team as they transition into a public company.”
At the time of its official launch in March, Lahnstein said BLM Partners would focus on investing mainly in undervalued European companies and would look to buy or take significant minority stakes in businesses.
He said: “Asset classes and a number of industries are undergoing dramatic change in their valuations and structures, and there are some significant valuation gaps that have emerged. We will set up funds for specific industries and products.”
--write to hwilson@efinancialnews.com
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