mdexx Holding GmbH
As a stand-alone company the mdexx group develops and produces transformers, power supplies, throttles and filters, as well as axial and radial ventilators, especially for the rail sector but also for the medical technology sector. In 2016 CGS Management, a Swiss private equity firm, sold off the former business division of Siemens AG – 100% of the shares were acquired by Quantum Capital Partners.
The new investors identified growth and upside potential for the company with its nearly 500 emloyees in Germany, Czech Republic, and China. Attracting third party customers besides Siemens and addressing operational inefficiencies brought about a quick turnaround for mdexx.
- Situation before the takeover: Revenues decreased from EUR 61m in 2013/14 to EUR 54m in 2014/15, resulting in a negative EBIT margin of -2%
- Key measures after the takeover: Restructuring of sales organization, replacement of interims by fully employed staff, change of management and processes in fan business
- Situation upon resale: Significant enhancement in efficiency as well as profitability
Solution: measures after the takeover
Following the takeover, QCP’s strategic focus was on rapid restructuring at mdexx and establishing a sustainable business strategy. Following measures were implemented:
- New management fan business and CFO
- Focus on operational improvements and process optimization (e.g. down scaling of unprofitable Chinese operations)
- Streamlining of product portfolio and focusing on core business
- Replacement of interims by full time employees
Adaptable and extremely efficient:
On-demand production with attention to detail
From design through to finishing: mdexx takes the customer's specific requirements and the applicable industry standards into account in every stage of production. Thanks to state-of-the-art production facilities and experienced professionals, the Group of Companies offers a comprehensive range of products. Thus, with its extensive machine park, mdexx produces fans which can be precisely aligned with the customer's actual end product. An example of this is the latest product innovation: the Turboline high-pressure fan.
mdexx measures quality by customer satisfaction. In order to always fulfil the high requirements of its international customer base, the company uses state-of-the-art testing and measurement technologies in the production of a range which is unique in the industry. Experienced engineers thus test new developments, perform type testing according to national and international specifications and carry out system, ageing or material testing. Various ISO certifications verify and sustain this high level of quality, reliability and functionality in the products and solutions.
Situation at resale:
All the mentioned measures achieved a sustainable turnaround for mdexx within just a year and a half.
- Sales in 2016/17: EUR 47m
- EBITDA in 2016/17: EUR 3.7m
- Optimized operations that result in a significant increase in profitability
In 2017, Quantum sold 100% of its stake in the company to a Chinese strategic investor.