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Heco - Gertsen & Olufsen makes the third add-on acquisition in 18 months

 

Gertsen & Olufsen continues the consolidation of the maritime sector with the acquisition
of Heco International

 

Heco is a global company that manufactures piston rod stuffing boxes featured on two stroke diesel engines in large ships. The company, which is located in Hedensted, was founded in 1959 by Henning Cornelius. Henning Cornelius invented and developed scraper rings for the stuffing boxes. Heco has 47 employees, of which 25 work at their Chinese factory in Suzhou, west of Shanghai.


Erhvervsinvest acquired in partnership with Bo Kristensen Gertsen & Olufsen in April 2014, and has since then made three add-on acquisitions as part of a consolidation strategy. Atlas Incinerators produces incinerators and was acquired from Erik Jacobsen in September 2014 as a succession case. In addition, Pres-vac who manufactures valves was acquired from DNB in April earlier this year.


Three months ago, Gertsen & Olufsen’s trading activity were divested and the continuing operation were moved from the facilities in Hørsholm to Pres-vac’s headquarter in Allerød. The trading activity has an annual revenue of approximately DKK 50 million. 

 

Thomas Marstrand, Managing Partner and CEO of Erhvervsinvest comments:
“We are very pleased with the investment in Heco - it fits well with the other companies in the G&O group, who also manufactures high quality products for large ships and are global leaders in their respective niches. Heco is an attractive and well-run company with considerable potential and at the same time, it adds competencies and additional depth to the group.


Since the acquisition of Gertsen & Olufsen 18 months ago, the revenue has increased 5 times, and a significant part of the growth has been organic. We have created a bigger and more competitive group with a strong management team, who can continue the consolidation case internationally.”


Carsten Steffensen, CEO in Heco, says:
“Heco has experienced a good and stable development under the current board of directors. And under the ownership of the Cornelius family there has been invested substantially in the company. Today, Heco is a strong and solid company with an automated production plant in Hedensted and an efficient factory in China. It has increased its market share continuously over the last years in China. I look forward to being part of a larger company with the opportunities that follows.”


Chairman Heco, Lawyer Ib Skovbo, says:
“The time is right for a succession and there is no successors among the current owners that wish to take over the company. It has been of great importance to the current board of directors to find a new owner who wish to continue the ownership with the same good intentions as the former owners. We are certain that Erhvervsinvest and Gertsen & Olufsen is a good match that can help the company develop even further.”

Bo Kristensen, shareholder and board member in Gertsen & Olufsen comments:
“It has been a fantastic journey and we have already taken advanced steps in the integration of the companies. After the divestment of the trading activity and the movement of the continued business to Pres-Vac’s location in Allerød, we have begun to see a positive effect of the integration within the sales organization.”


John Åge Lazar became CEO in the G&O group by September 1st 2015 from a position as CEO in Alfa Laval Nakskov further comments:
“It’s an exciting case with significant potential. I look very much forward to integrating the 4 companies and create an even stronger platform for further consolidation.”


For further information, please contact:

Carsten Steffensen, CEO, Heco International A/S
Phone: +45 75 89 21 22

 

John Åge Lazar, CEO, Gertsen & Olufsen A/S
Phone: +45 22 23 86 37

 

Bo Kristensen, shareholder and board member, Gertsen & Olufsen
Phone: +45 51 58 55 52

 

Thomas Marstrand, Managing Partner and CEO, Erhvervsinvest
Phone: +45 70 20 32 95 or +45 21 65 93 26

 

Lawyer Ib Skovbo, Chairman, Heco International A/S
Phone: +45 75 72 41 00 or +45 30 73 83 00

 

Erhvervsinvest
Erhvervsinvest is a private equity firm that focuses on investments in small and mediumsized Danish companies in connection with succession and ownership changes.


Investors in Erhvervsinvest include Nykredit, AP Pension, Fagbevægelsens Erhvervsinvestering, Spar Nord Bank, PFA, CW Obel and Dansk Vækst Kapital

 

Read the entire press release here