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24 Jul 2024
Machine vision firm signs takeover deal with US-based MiddleGround Capital.
Stemmer Imaging, the Germany-based provider of machine vision technology, is set for a private equity buyout, after the firm’s management and main investor agreed a takeover deal with Kentucky’s MiddleGround Capital.
The offer price of €48 per share, which represents a premium of around 50 per cent on Stemmer’s recent stock price, also corresponds to a company valuation of €312 million.
US expansion plan
Stemmer sells a wide range of components used in machine vision - including cameras, optics, illumination sources, software and more. Its stock was first listed on the Frankfurt Stock Exchange back in February 2018, when the company raised €51 million in an initial public offering (IPO) with an issue price of €34 per share.
The intervening years have seen the company increase its annual sales turnover from just under €90 million, to around an expected €150 million in its current fiscal year - partly thanks to acquisitions, most recently that of New York distributor Phase 1 Technology.
MiddleGround, whose portfolio typically comprises medium-sized manufacturing and industrial businesses, says it has already acquired close to a 70 per cent stake in Stemmer following an agreement with investor Primepulse, which is expected to retain a minority stake.
Members of the Stemmer management team who own some of the outstanding stock have also agreed to sell their individual stakes, with the company set to be de-listed from the Frankfurt exchange once the full takeover is completed.
MiddleGround’s managing partner, John Stewart, said in a release announcing the deal: “We look forward to working closely with the team as they expand the company’s presence within the European market and broaden its reach to the US and globally.”
Munich move
Stemmer’s management team said earlier this year that it was looking to expand in the US - partly through the Phase 1 acquisition - and was aiming to hit a yearly sales target of €240 million by 2026.
The firm is also in the process of relocating its headquarters from the original location in Puccheim, and expects to have moved into new office premises close to the center of Munich by the end of this year.
Arne Dehn, who has been Stemmer’s CEO since early 2019, commented: “MiddleGround Capital is a professional, entrepreneurial partner with a high level of operational expertise that understands the success factors for our business very well and can sustainably support Stemmer in its further development and growth strategy.”
Klaus Weinmann, the chairman of Stemmer’s supervisory board and CEO of key investor Primepulse, added: “Stemmer has developed very positively in recent years and is now ready for the next growth step.”
Among Primepulse’s other investments is the Munich-headquartered Marvel Fusion, which is aiming to develop commercial fusion energy based around short-pulsed lasers. The startup is currently looking to build a new $150 million laser fusion laboratory in a collaboration with Colorado State University (CSU).
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