The Interview Omer Rehman &
Harald Pöttinger Partners at
ADKM Inc., owner of Harry’s, a men’s grooming brand servicing the U.S. market, recently completed the purchase of Feintechnik GmbH Eisfeld, a 93-year-old German manufacturer of razor blades, from funds advised by Invision Private Equity AG and Alpine Equity Management AG. We spoke to Alpine’s founders, Omer Rehman and Harald Pöttinger, for an inside look at this razor-sharp deal.
O
mer Rehman has been a partner at Alpine Equity Management AG (“Alpine”) since 2006 and is responsible for business development and the
development and exit of investments. Before joining Alpine, Omer worked for Roland Berger out of Vienna in Central and Eastern Europe and Russia on various projects in areas including growth strategy consulting, M&A activities and restructuring projects.
Harald Pöttinger has been a partner at Alpine since founding the company back in 1999. Prior to Alpine’s establishment, Harald worked for a large regional bank, Vorarlberger Landes- und Hypothekenbank AG in Bregenz, where he was Head of Internal Audit and Head of Corporate Clients, Sales and Risk Management.
What more can you tell us about Alpine Equity Management AG?
Since its foundation in 1999, Alpine has built up a high-quality portfolio of dynamic enterprises in sectors of the market with a promising future. We pride ourselves on the successful and long-term partnerships, which is enhanced by our evergreen fund structure. This means we are able to divest at the ideal moment – without time pressure. We consider this structure as a key differentiator for Alpine compared with other equity institutions. We invest equity or equity mezzanine in fast growing companies,
management buyouts,
and are flexible to capture value from special opportunities, such as succession plans in small and medium sized businesses in Austria, Germany and Switzerland.
Our mission is to internationalize established businesses in various industries and to help them grow sustainably and profitably. We see ourselves as reliable and competent partner for fully committed entrepreneurs and managers who want to advance their company in terms of sales and profit growth.
What have been some of Alpine’s most defining moments over the past five years?
The finance and loan crisis was, of course, a significant strain on the private equity business model as a whole and so we put our focus on the development of the portfolio companies rather than on investing in new firms.
Apart from the sale of Feintechnik we also had another quite successful exit in selling AmannGirrbach
(a dental equipment
manufacturer) to an US-based strategic buyer; for which we achieved an IRR of more than 50% and a money multiple of 20; the investment strategy for AmannGirrbach was – as in the case of Feintechnik – to internationalise the company.
What more can you tell us about the sale of Feintechnik GmbH Eisfeld?
Feintechnik is a great business that operates in a very interesting market with just a few market players and high barriers to entry. The Company is also characterized by outstanding grinding technology; it applies the highest standard of grinding competence, the so-called Gothic Arch; just two other players on earth command the same level of competence.
2010,
During our holding period we could more than double turnover, expand the customer base but also enlarge and innovate the product range; as such we introduced some significant product offerings including, for example, the new five blade razor both for men and women.
Moreover, we have found in our Swiss-based co- investor Invision Private Equity AG, an excellent partner who shared our vision of Feintechnik’s future and also complemented our own expertise in a good manner.
What is the significance of this sale?
Looking at the big picture reveals the eventful history of the company. Originally founded by an entrepreneur, Feintechnik was then owned by the Treuhandanstalt, before it was sold to another entrepreneur and then to us (Invision and Alpine); finally Feintechnik was purchased by a start-up company – backed by a US-based hedge fund; that’s a really big story, and one we’re proud to be a part of.
Overall, we think Harry’s is an excellent partner for Feintechnik and will be able to grow the firm in the (by us) untapped US market and will subsequently globalize the company.
Contact:
Web:
www.alpineequity.at Email:
office@alpineequity.at
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