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Garz & Fricke Group acquired by Seco

GERMANY Hardware & Electronics / IT Equipment / IoT & Connected Objects EV €100–350M

Context

SECO S.p.A. has executed a definitive agreement to acquire the entire share capital of Garz & Fricke Holding GmbH from Afinum and minority shareholders. The transaction is structured with a total consideration funded through a mix of new medium-long term debt facilities, cash on balance, and newly issued equity subject to staggered lock-up periods. From a strategic perspective, this combination represents a highly synergistic platform investment designed to establish the largest listed pan-European champion in the edge computing industry. The strategic rationale is underpinned by a unique geographic and product fit, enabling the acquirer to significantly reinforce its presence in the highly attractive DACH region while diversifying its end-market exposure across resilient verticals such as professional kitchen equipment and MedTech. Furthermore, the transaction unlocks substantial cross-selling opportunities, primarily through the accelerated deployment of proprietary IoT-AI platforms across the target's extensive annual production of over 200,000 edge devices.

Garz & Fricke Group, which reported an EBITDA margin of [members only] in 2022, is valued in this transaction at an EV/EBITDA multiple of 15x–25x, representing a premium to the average observed in the TMT (Tech, Media, Telecom) sector (14.2x in 2021).

-> Deep-dive in TMT (Tech, Media, Telecom) market trends

Target

Garz & Fricke Group is a prominent Germany-based developer and manufacturer specializing in standard and custom edge Human-Machine Interface solutions, building blocks, and highly tailored ecosystems integrating IoT, software, and payment capabilities. The company maintains a leading market position within the industrial Internet of Things landscape, serving as a mission-critical technology partner for OEMs and system integrators across diverse, structurally attractive verticals such as medical and laboratory technology, professional kitchen equipment, and vending. Operating a robust, vertically integrated business model, the enterprise conducts its engineering and manufacturing entirely in Germany, underpinned by a highly skilled workforce where research and development personnel account for a significant portion of its human capital. This deep technological footprint enables the continuous delivery of seamlessly customized edge systems that drive operational efficiency for its blue-chip client base. From a strategic perspective, the company represents a highly compelling asset with substantial value creation potential, supported by its expanding installed base of active IoT and payment terminals.

Ent. Value

€100–350M

Equity Value

[members only]

Multiples

EV / Revenue

2x–6x

EV / EBITDA

15x–25x

EV / EBIT

[members only]

Historical Financials (EUR)

Year
Rev
EBITDA
EBIT
2022
€50–100M
€5–25M
[members only]
2019
€50–100M
€5–25M
[members only]

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REFERENCES

Valuation range: EV €100–350M

Revenue range: €50–100M

EBITDA range: €5–25M

EV/Revenue range: 2x - 6x

EV/EBITDA range: 15x - 25x

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of Garz & Fricke Group by Seco are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Press release: view release

Acquirer: seco

FAQ

What transaction does this page cover?

This page covers Seco’s acquisition of 100% of Garz & Fricke Group, a German company specialised in IT Equipment, in 2021.

How was the acquisition of Garz & Fricke Group by Seco valued, and what multiples were paid?

mynth displays the transaction’s enterprise value within the €100–350M band, its EV/EBITDA multiple within the 15x - 25x range, and its EV/revenue multiple within the 2x - 6x range. Exact figures are available to members.

What were Garz & Fricke Group’s revenue and EBITDA at the time of the deal?

At the time of the transaction, Garz & Fricke Group generated annual revenue estimated in the €50–100M range and EBITDA in the €5–25M bracket (FY 2022). Detailed financial figures are available to members.

How does the valuation of Garz & Fricke Group compare to benchmarks in the TMT (Tech, Media, Telecom) sector?

With an estimated valuation multiple in the range of 15x - 25x, Garz & Fricke Group trades above the median sector multiple of 14.2x observed for the TMT (Tech, Media, Telecom) sector in 2021. The descriptive comparison is based on 15 transactions with available EV/EBITDA multiples from differences in size, growth, profitability that may affect comparability.

What sources support the information on this transaction?

The details of this transaction are sourced directly from the official corporate announcement published on the parties’ institutional website, ensuring primary-source verification of the closing and perimeter.

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