News
Siemens Venture Capital (SVC) adds growth capital to its business portfolio
Munich, 02.02.2009 - First investment: Minority holding in waste-heat specialist Maxxtec AG.
Siemens Venture Capital (SVC) is acquiring a minority stake of about 20 percent in Maxxtec AG, a leading provider of waste-heat systems and ORC modules (organic rankine cycle, a power generation process, based on organic media) for biomass and industrial applications. The financing of the Sinsheim-based company totals about EUR 10 mn and represents the first investment of SVC’s newly launched Growth Capital initiative. SVC plans to make additional global investments, aiming for significant minority holdings and investment volumes ranging from EUR 10 mn to EUR 30 mn in each case.
Siemens Venture Capital was founded 10 years ago by bundling the Siemens venture capital activities into a new subsidiary. While SVC’s investments have so far focused on technology startups, that is, early-stage companies, the company is now also taking minority holdings in established companies that need growth funding. SVC’s target companies are characterized by high growth and profitability, and are active in markets with a strong Siemens presence and expertise. The funding ranges from EUR 10 mn to EUR 30 mn, with acquisitions of stakeholdings from existing shareholders or participation in buyouts also representing possible options.
Paul Decraemer, Head Cleantech Investment Practice at Capricorn Venture Partners, states: “Biopolymers belong to the group of innovations which present outstanding opportunities for global growth driven by the combination of increasing prices for oil-based plastics, consumer awareness for eco-friendly products and supporting legislation promoting the end-of-life disposal benefits of biodegradable packaging material. Xylophane offers a unique opportunity to tap into this emerging market with very significant growth potential.”
“Growth capital activities represent a logical extension of our successful business model. We are interested in global companies that profit from a solid market position and can fuel their growth with the help of Siemens’ expertise. In this way, we are expanding Siemens Financial Services’ equity investment offer,” said Ralf Schnell, CEO of Siemens Venture Capital.
First growth capital investment in waste-heat specialist Maxxtec AG
Maxxtec AG is a leading developer and manufacturer of components and integrated systems for efficient energy generation from solid biomass, industrial waste heat and other renewable energy sources. Maxxtec AG is the only global player offering entire heat transfer plants and ORC modules from a single source. The company serves customers in more than 45 countries through eight branches and regional offices in Europe as well as 26 representative offices worldwide. Since going into business in 1996, Maxxtec has achieved an average annual growth rate of more than 50 percent. Sales in 2008 amounted to over EUR 30 mn.
“Maxxtec’s ORC technology is increasingly used in decentralized biomass power plants and also allows for the utilization of energetically valuable industrial waste heat. As a result, Maxxtec enables the infrastructure for renewable energy to be expanded and operates in long-term growth markets,” said Rudolf Ohnesorge, Investment Partner at Siemens Venture Capital and a future member of Maxxtec’s Supervisory Board.
“We are very pleased to have found a strong financial investor in Siemens Venture Capital, whose membership in the Siemens Group also offers us valuable support in our operative business,” said Rolf Schleicher, CEO of Maxxtec AG. The company plans to use the fresh capital primarily to finance its continued growth by intensifying its international sales efforts, forging ahead with the development of new products and further expanding serial production. In addition, Maxxtec is also reviewing possible investments in small or medium-sized companies in areas close to its core business.
