Private equity fund buys Bavaria

German yacht builder saved from administration by private equity fund.

German yacht builder Bavaria Yachtbau has been bought out of administration by a private equity fund based in Berlin. The manufacturer went into voluntary administration earlier this year and has since been looking for new backers.

In a statement released on the weekend, Bavaria said the investment company CMP Capital Management-Partners will acquire the entire business including all shares in French subsidiary Bavaria Catamarans S.A.S.

All 550 employees of Bavaria Yachtbau in Giebelstadt and all 250 employees of Bavaria Catamarans in Rochefort will transfer to the purchaser which is expected to continue manufacturing operations.

Founded in 2000, CMP Capital Management Partners specialises in turnaround and restructuring investments in mid-size companies based in Germany, Austria and Switzerland. The investment company describes itself as a “temporary partner” that helps companies emerge from a crisis in order to grow again after a period of stabilisation. Typically, CMP aims for a holding period of three to seven years.

Following an investment in a company, CMP employees assume operative management responsibilities on site which, in the case of Bavaria, will see Dr. Ralph Kudla, a restructuring expert and partner at CMP, join the executive board.

“We are convinced of Bavaria's global market potential and will sustainably develop the company,” said Kai Brandes, managing director of CMP Capital Management-Partners. “The restructuring measures will focus on regaining market share and improving production costs.”

According to the company statement, the deal was approved by the creditors' committee and the administrator of Bavaria Yachtbau GmbH, Dr. Hubert Ampferl. The purchase will be completed after merger control clearance by the German Federal Cartel Office, which is expected in a couple of weeks. The parties have agreed not to disclose the purchase price.

“Bavaria is an outstanding company with a strong brand, compelling products and a highly dedicated team. We are pleased to have found a well-known and experienced buyer in CMP who will lead Bavaria into the future,” said Dr. Tobias Brinkmann, the restructuring expert who has been overseeing Bavaria's operations since insolvency proceedings began.

“The entire management would like to thank our employees, yacht dealers, customers and suppliers. They have all supported Bavaria Yachtbau during the insolvency proceedings. The fact that Bavaria has been able to successfully build and deliver 220 yachts during the last five months shows how committed and reliable our staff is.”