Private equity firm 3i has exited Atesteo, a German drivetrain testing firm, for a euro money multiple of 4.4x.
The business has been sold to IHO Holding for €307 million.
Atesteo provides drivetrain testing services for automotive original equipment manufacturers (OEMs) and their suppliers. The drivetrain of a motor vehicle is the system which connects the transmission to the drive axles and so delivers power to the driving wheels.
The business was founded in 1986 and is headquartered in Alsdorf, Germany. It has about 800 employees and 135 testing benches in Germany, Japan, China and North America.
3i invested in Atesteo in 2013. Since then the EBITDA of the firm has more than doubled while its testing capacity has increased by 30%. During the course of 3i’s ownership, the business was refinanced twice and made two acquisitions. Atesteo also doubled its capacity in China.
Ulf von Haacke, Partner and Head of Industrial at 3i Germany, said: “During our investment period, Atesteo has cemented its leading market position in the independent drivetrain testing space and has increased its exposure to hybrid and electric vehicle technologies. Today, the company is well positioned to lead the way in testing the quality of increasingly electrified and autonomous automotive technology.”
Wolfgang Schmitz, Chair of the Management Board of Atesteo, added: “The 3i team has been a huge support in helping us to advance our international expansion and expand our footprint into growth markets such as China. We look forward to working with IHO Holding, who will enable us to further develop our offering and navigate the rapid changes taking place in the sector.”