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10/2021

GARZ & FRICKE GROUP acquired by SECO

GERMANY Hardware & Electronics / IT Equipment / IoT & Connected Objects EV 100M - 350M EUR

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 in 2022, is valued in this transaction at an EV/EBITDA multiple of , representing a level the average currently observed in the TMT (Tech, Media, Telecom) sector (15.3x).

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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

Equity Value

Multiples

EV / Revenue

EV / EBITDA

EV / EBIT

Historical Financials (EUR)

Year
Rev
EBITDA
EBIT
2022
2021

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REFERENCES

Valuation range: EV 100M - 350M EUR

Revenue range: 50M - 100M EUR

EBITDA range: 5M - 25M EUR

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